Most states pay foster parents somewhere between $500 and $900 per month per child, but how much the state pays for a foster child depends heavily on the child’s age, the level of care they need, and where you live. Base rates in some states barely clear $400, while payments for children with serious medical or behavioral needs can top $1,000 or more. The monthly check is only part of the picture: separate allowances, medical coverage, and mileage reimbursements often sit alongside it.
What the Monthly Payment Is Meant to Cover
Foster care maintenance payments are not a general stipend. Federal law defines exactly what they must pay for: food, clothing, shelter, daily supervision, school supplies, personal items, liability insurance for the child, travel for family visitation, and travel to keep the child in the same school after placement.1Office of the Law Revision Counsel. 42 USC 675: Definitions That list is the baseline every state rate has to meet.
If a foster child is also a parent and their baby lives with you, the maintenance payment has to cover those same categories for the baby too.1Office of the Law Revision Counsel. 42 USC 675: Definitions This comes up more often than new foster parents expect, particularly with older teens.
What Changes the Monthly Rate
Every state publishes its own rate schedule. Two factors do most of the work in setting your specific number.
The Child’s Age
Older children cost more to feed and clothe, and rate schedules reflect that. A typical structure uses three age bands, roughly birth through five, six through twelve, and thirteen and older, with payments stepping up at each tier. The gap between the youngest and oldest bands can run $100 to $200 a month or more.
The Assessed Level of Care
A healthy toddler removed for neglect and a teenager with a serious mental health diagnosis do not require the same level of supervision, and states pay accordingly. Tiered level-of-care systems assess each child’s emotional, behavioral, medical, and educational needs. A child assessed at a higher tier because of frequent behavioral crises, a developmental disability, or a need for therapeutic intervention can qualify for a payment two or three times the base rate.
These assessments come from the placing agency using a standardized tool, and the tier can be revised as the child’s situation changes. If a child stabilizes and moves to a lower level, the payment drops. If new challenges appear, the caseworker can request a reassessment.
Allowances on Top of the Monthly Check
The monthly maintenance payment is the core, but most states layer additional payments on top for predictable expenses that fall outside daily living costs.
- Initial clothing allowance when a child first arrives, often $100 to $300 depending on age and circumstances.
- Back-to-school allowances issued annually in some states to cover school clothing and supplies.
- Birthday and holiday allowances in a number of states, usually $50 to $200 per occasion where offered.
- Infant supplements in some states for children under two or three, meant to help with formula, diapers, and specialized supplies.
Availability and amounts vary substantially by state, and sometimes by county. Your licensing worker can give you the exact schedule that applies.
Costs the State Covers Separately
Medical Care
Foster parents are not expected to pay for a child’s medical care. Children in foster care who are eligible for Title IV-E supports automatically qualify for Medicaid, and in practice nearly all foster children receive Medicaid coverage regardless of the foster family’s income, because eligibility follows the child’s status in state care rather than household finances.2Medicaid.gov. Improving Timely Health Care for Children and Youth in Foster Care Medicaid covers doctor visits, dental care, mental health services, prescriptions, and specialized treatments.
Childcare While You Work
Foster care payments were never designed to replace a paycheck, and childcare during a foster parent’s working hours, when the child is not in school, is an allowable cost under Title IV-E, the federal funding stream that reimburses states for foster care. Your state can cover it by folding it into your payment or by issuing a childcare voucher. Childcare is also reimbursable when you have to attend court hearings, case conferences, or mandatory foster parent training without the child present.3Child Welfare Policy Manual. TITLE IV-E, Foster Care Maintenance Payments Program, Payments, Allowable Costs
Two limits worth knowing. Therapeutic childcare aimed at building a child’s social skills is treated as a social service rather than a maintenance cost and follows a different reimbursement path. And if the state is already paying a provider through a program like the Child Care Development Fund, it cannot also claim that cost under Title IV-E.
Mileage for Specific Trips
Routine transportation, like driving to school or activities, is generally considered part of the monthly rate. But many states separately reimburse mileage for family visitation, medical appointments, dental visits, and therapy sessions. These trips add up, especially when biological parents or specialists live far away. Keep a mileage log from day one, because retroactive claims are harder to process.
What You’ll Still Pay For Yourself
Experienced foster parents consistently report spending their own money on extracurricular activities, back-to-school events, haircuts, cell phones for teens, and the small daily purchases that come with raising a child. The monthly rate covers a defined set of expenses; it does not stretch to cover everything.
Property damage is the cost nobody mentions during orientation. Some children in care act out in ways that damage furniture, walls, or belongings. A few states provide liability coverage or a reimbursement fund for this, but many do not, and the caps where programs exist are modest.
Tax Treatment and Other Benefits
Foster care payments are not taxable income. Federal law specifically excludes qualified foster care payments from gross income, including both the basic maintenance payment and any difficulty-of-care payments for children with additional needs.4Office of the Law Revision Counsel. 26 USC 131: Certain Foster Care Payments You do not report them on your return, and they do not push you into a higher bracket.
A foster child may also qualify you for tax credits. To claim a foster child as a qualifying child for the Child Tax Credit or Earned Income Tax Credit, the child must live with you for more than half the tax year, and the child cannot have provided more than half of their own support. For the EITC, the child must have been placed by a state or local government agency, a tribal government, a tax-exempt licensed organization, or a court order.5Internal Revenue Service. Qualifying Child Rules The residency rule creates a timing issue: a child placed in August likely will not qualify for that tax year, while a child placed before July generally will. For the Child Tax Credit, the child must also be under 17 at year end, and you need at least $2,500 in earned income.
Foster care maintenance payments generally do not count as income for SNAP eligibility. Federal rules let households exclude both the foster child and the associated payment from the income calculation, because the payments reimburse the child’s expenses rather than earning household income. The same principle applies to most other means-tested benefits, though specific rules vary by program.
When the First Payment Arrives
Most states pay monthly, though a handful use biweekly cycles. Direct deposit is faster and widely available; without it, expect a mailed check. Payments typically cover the prior month, so care provided in May shows up in a June payment.
After an initial placement, expect a delay of several weeks before the first payment arrives. Paperwork confirming the placement, setting the child’s level of care, and establishing your payment method all has to clear. Plan for a financial cushion so you are not scrambling to cover immediate expenses like clothing and bedding out of pocket.
How to Find Your State’s Exact Numbers
Because every state sets its own schedule, the most useful step is calling your state’s child welfare agency directly, usually called the Department of Children and Family Services, Department of Social Services, or something similar. Ask for the current rate schedule by age group and level of care, the list of additional allowances, the mileage reimbursement policy, and whether childcare assistance is available. Most agencies post this online, and your licensing worker should walk you through the details during the application process.