How Much Money Do Foster Parents Get Paid?

Foster care payments serve as financial support designed to help cover the costs associated with caring for a child placed in a foster home. These payments are provided by state or county agencies to assist foster parents in meeting a child’s various needs. The financial support aims to ensure foster children receive proper care and a stable environment.

Factors Influencing Foster Care Payments

The amount of financial support foster parents receive varies considerably across the United States. Payment rates are determined at the state and even county or local agency level, leading to significant differences depending on where the foster family resides. For instance, monthly payments can range broadly, with averages often falling between $300 and $800 per child. Some states might offer daily rates that translate to approximately $889 per month for younger children and $1,189 for teenagers.

A child’s age is a primary determinant of the payment amount, as older children typically require more resources. For example, monthly rates might be higher for children aged 13 and above compared to infants or toddlers, reflecting increased costs for food, clothing, and activities as a child grows.

Children with specific needs, such as medical conditions, behavioral challenges, or developmental disabilities, often qualify for higher payment rates. These enhanced stipends are provided to cover specialized care, therapies, or additional supervision that goes beyond typical daily care, with some states offering rates that are significantly higher for children requiring intensive support, sometimes reaching several thousand dollars per month for those with the greatest needs.

The total amount received by a foster family also depends on the number of children in their care, as payments are calculated per child. While the base rate is per child, some agencies may offer additional support for sibling groups to help keep families together. Payments are most commonly disbursed on a monthly basis, though some agencies might opt for bi-weekly payments. Typically, payments begin after a child is placed and necessary paperwork is processed, which usually occurs within the first month of placement.

Purpose of Foster Care Payments

Foster care payments are specifically allocated to cover the expenses associated with a foster child’s needs, rather than serving as income for the foster parents. These funds are intended as a reimbursement to ensure that the child’s daily living requirements are met. The stipend helps cover essential costs like nutritious food and a portion of household utilities and rent attributable to the child.

The payments also contribute to clothing expenses, allowing foster parents to purchase seasonal attire and shoes suitable for the child’s age and size. Personal care items, including hygiene products and haircuts, are another category of expenses the stipends are designed to cover.

School-related costs for foster children are also factored into these payments, including basic school supplies and minor fees. Additionally, the stipend helps cover transportation costs, such as fuel and vehicle maintenance, for taking the child to school, appointments, and other necessary activities. The payments are also intended to support a child’s participation in minor recreational activities or outings. While the stipend helps with these costs, foster parents may sometimes supplement these funds with their own money, as the stipend may not cover every single expense.

Additional Financial Support for Foster Parents

Beyond the regular per-diem payments, foster parents often have access to various forms of additional financial assistance. Foster children typically receive comprehensive medical and dental coverage through state-funded programs like Medicaid. This coverage ensures that medical, dental, and mental health needs are met without direct cost to the foster parents, as it generally includes no co-pays, premiums, or deductibles. Young adults who were in foster care usually retain Medicaid coverage until they reach age 26, regardless of income.

Some agencies provide separate, periodic clothing allowances in addition to the regular monthly stipend. These allowances can be annual or quarterly and may vary by the child’s age. There might also be initial placement stipends, which are one-time funds designed to help foster parents with setup costs when a child first enters their home, such as purchasing a bed or car seat.

Funding for respite care is another form of support, allowing foster parents short breaks while another approved caregiver temporarily cares for the child. This can be paid at the child’s per-diem rate for the respite provider. Special grants or funds may be available to cover specific extracurricular activities, specialized equipment, or therapies not covered by standard medical insurance. For example, some jurisdictions are implementing programs to provide a monthly stipend of at least $500 specifically for a foster child’s enrichment activities.

Foster parents may also benefit from certain tax advantages, as foster care payments are generally not considered taxable income by the Internal Revenue Service (IRS). Foster children can often be claimed as dependents on tax returns if they meet specific IRS criteria, such as residing with the foster parent for more than half the year. This dependent status can qualify foster parents for tax credits like the Child Tax Credit (which can be up to $2,000 per qualifying child for the 2023 tax year), the Dependent Care Credit, or the Earned Income Tax Credit. If a foster child is adopted, particularly one with special needs, financial assistance programs known as adoption subsidies may continue.