Kinship foster care is an arrangement in which a child who has been removed from their parents’ home is placed with a relative or a trusted adult the child already knows, rather than with a stranger. Federal law requires every state to consider giving preference to a relative over an unrelated foster parent when a child enters the system.1Office of the Law Revision Counsel. 42 USC 671 – State Plan for Foster Care and Adoption Assistance How the arrangement actually works for the caregiver, including the money that comes with it and the legal authority to make decisions for the child, depends almost entirely on whether the placement is handled formally through a court and the child welfare agency, or informally between family members.
Who Counts as Kin
The definition reaches well past blood relatives. Grandparents, aunts, uncles, siblings, and cousins all qualify. Federal and state agencies also recognize “fictive kin,” meaning adults who have an established relationship with the child but aren’t related by blood or marriage: godparents, longtime family friends, coaches, or neighbors who have been part of the child’s life in a meaningful way.2Child Welfare Information Gateway. Placement of Children With Relatives
Recognition of fictive kin varies. Some states use the term broadly, others limit kinship placements to people related by blood or marriage. A godparent who qualifies in one state may not qualify in the next.
Formal and Informal Arrangements Are Different Programs
The biggest fork in kinship care is whether the state is involved. The money, the oversight, and the legal authority all follow from that answer.
Informal Kinship Care
Informal kinship care is a private arrangement. A parent places the child with a relative, sometimes through a power of attorney or a delegation of parental authority document. The state doesn’t hold custody and often isn’t involved at all. The caregiver may never appear in any government system.
That flexibility comes at a cost. Without foster parent status, the caregiver has no access to foster care maintenance payments. The main financial support available is a child-only Temporary Assistance for Needy Families (TANF) grant, which looks only at the child’s income rather than the caregiver’s household income. Only about 13 percent of eligible children in kinship families receive these grants, in part because caregivers don’t know they exist and in part because the application form was designed for family grants rather than this situation.3U.S. Department of Health and Human Services. Children in Temporary Assistance for Needy Families (TANF) Child-Only Cases With Relative Caregivers Monthly amounts vary widely by state, averaging roughly $330 per month nationally for one child and dropping as low as $81 in some states.
Formal Kinship Foster Care
Formal kinship foster care starts with a court order placing the child in the custody of a child welfare agency. The agency then places the child with a relative who has been licensed or approved as a foster parent. The caregiver is subject to the same oversight as any other foster parent, including caseworker visits and compliance with licensing standards.
In return, the caregiver receives foster care maintenance payments. Rates vary by state and are typically scaled by the child’s age, with higher rates for older children and for children with special needs. Under a 2023 federal rule, licensed or approved kinship foster homes must receive the same rate as non-relative foster homes.4Administration for Children and Families. States and Territories That Have Adopted Separate Licensing or Approval Standards That change matters: historically, many kinship caregivers were steered into unlicensed arrangements and paid a fraction of what non-relative foster parents received for the same work. Formal placements also come with Medicaid coverage for the child, which informal caregivers generally don’t get automatically.
Money Available to Kinship Caregivers
Beyond the maintenance payment or TANF grant, several other sources of support may apply, depending on the arrangement and the caregiver’s tax situation.
Child Tax Credit and Credit for Other Dependents
A kinship caregiver who meets IRS dependency rules can claim the Child Tax Credit for a qualifying child who is under 17, lives with the caregiver for more than half the year, and is claimed as a dependent. The relationship test covers sons, daughters, stepchildren, eligible foster children, siblings, and descendants of any of these, so grandchildren, nieces, and nephews qualify. For the 2025 tax year, the credit is worth up to $2,200 per child, with a refundable Additional Child Tax Credit of up to $1,700 for lower-income households.5Internal Revenue Service. Child Tax Credit
The Tax Cuts and Jobs Act provisions that increased the credit are set to expire after 2025. Unless Congress extends them, the credit reverts to $1,000 per child with lower income phase-out thresholds starting at $75,000 for single filers and $110,000 for joint filers. Check current IRS guidance before filing.
If a child doesn’t meet the qualifying child relationship test, the caregiver may still claim the Credit for Other Dependents, worth up to $500 per dependent with a Social Security number, ITIN, or Adoption Taxpayer Identification Number.5Internal Revenue Service. Child Tax Credit
Earned Income Tax Credit
Caregivers with earned income may also qualify for the Earned Income Tax Credit. The qualifying child rules track those for the Child Tax Credit: a son, daughter, stepchild, adopted child, foster child, sibling, or descendant of one of these, who lives with the caregiver in the United States for more than half the year. For EITC purposes, a “foster child” means a child placed by a government agency, tribal government, or court order. The child must be under 19 at year’s end, under 24 if a full-time student, or any age if permanently and totally disabled.6Internal Revenue Service. Qualifying Child Rules The EITC is fully refundable, so it can produce a refund even when the caregiver owes no federal income tax.
Social Security Benefits
A child in kinship care may be entitled to Social Security survivor or dependent benefits, especially when raised by a grandparent. If a grandparent receiving retirement or disability benefits is raising a grandchild, the child can qualify for dependent benefits on the grandparent’s record when the biological parents are deceased or disabled, or the grandparent has legally adopted the child. The grandchild must have been living with the grandparent before age 18 and must have received at least half of their support from the grandparent for the year before the grandparent became entitled to benefits, and the natural parents must not be making regular support contributions.7Social Security Administration. Parents and Guardians If a parent has died and the child is already receiving survivor benefits, those payments continue regardless of where the child lives, and the caregiver can apply to become the representative payee.
Legal Authority to Make Decisions for the Child
One of the hardest parts of kinship care is the gap between being responsible for a child every day and having the paperwork to prove it. What the caregiver can authorize depends on the arrangement.
In formal kinship foster care, the child welfare agency holds legal custody and typically authorizes the foster parent to consent to routine medical care and ordinary educational decisions. Major medical procedures or changes in school placement often require sign-off from the caseworker or a court.
In informal arrangements, the caregiver may have no legal authority at all unless the parent has signed a delegation document. Many states offer a caregiver authorization affidavit that allows a relative caring for a child to consent to medical treatment and enroll the child in school. These affidavits generally must be notarized, typically expire after one year, and can be overridden by a parent’s conflicting decision as long as that decision doesn’t endanger the child. If the child stops living with the caregiver, the affidavit becomes invalid immediately.
School records fall under the Family Educational Rights and Privacy Act (FERPA), which grants rights to “parents,” a term that can include a person acting in a parental role. Whether a kinship caregiver qualifies depends on the circumstances and the school’s reading of the federal regulations.8Student Privacy Policy Office. FERPA Formal custody, guardianship, or a valid caregiver affidavit on file makes access to records far more straightforward.
Becoming an Approved Kinship Foster Parent
To be licensed or approved for formal kinship foster care, the caregiver has to meet safety-focused standards. Most jurisdictions require the caregiver to be at least 18, though some set the minimum at 21. The home must pass a safety inspection covering basics like working smoke detectors, safe storage of medications and hazardous materials, and adequate sleeping space.
Background Checks
Federal law requires criminal background checks for every prospective foster parent, including kinship caregivers, and for every adult living in the household. Certain felony convictions are permanent bars: child abuse or neglect, spousal abuse, crimes against children including child pornography, and violent crimes such as rape, sexual assault, or homicide. A felony conviction for physical assault, battery, or a drug-related offense within the past five years is also disqualifying.1Office of the Law Revision Counsel. 42 USC 671 – State Plan for Foster Care and Adoption Assistance
Immigration Status
Federal law does not prohibit someone without documented immigration status from becoming a foster parent. About a third of states, however, have licensing standards that require U.S. citizenship or legal immigration status, and practical barriers such as mandatory government-issued identification or Social Security numbers on forms can block undocumented relatives even in states without explicit requirements. A few states have specifically exempted kinship caregivers from immigration-related licensing rules. An undocumented relative may still be able to provide informal kinship care where formal licensure isn’t available.
Flexibility for Relative Homes
Federal law allows states to waive non-safety standards on a case-by-case basis for relative foster homes.1Office of the Law Revision Counsel. 42 USC 671 – State Plan for Foster Care and Adoption Assistance A grandparent with a spare bedroom slightly smaller than the usual foster home requirement may still qualify through a waiver as long as safety isn’t compromised. The 2023 federal rule goes further by letting states create entirely separate licensing tracks for kinship homes.4Administration for Children and Families. States and Territories That Have Adopted Separate Licensing or Approval Standards
The Approval Steps
The process typically takes three to six months from start to finish, though children are sometimes placed with the relative on an emergency or provisional basis while the evaluation proceeds. It usually involves:
- An application through the local child welfare agency, with identification, proof of income, relationship verification, and background check authorizations for every adult in the household.
- A home study, in which a social worker inspects the physical environment, interviews everyone in the household, and checks references over multiple visits.
- Pre-approval training, often 12 to 20 hours, covering trauma-informed care, child development, and the legal responsibilities of a foster parent. CPR and first-aid certification are also commonly required within the first few months.
- A formal approval or written denial. If denied, the caregiver has the right to appeal through an administrative hearing, and the deadline to request one can be as short as 45 days from the denial notice.
Making the Placement Permanent
Many kinship caregivers eventually want a lasting legal arrangement. There are two main paths, and they’re not interchangeable.
Kinship Guardianship Assistance
When a child has been in formal kinship foster care for at least six consecutive months, the relative may be eligible for the Kinship Guardianship Assistance Program (KinGAP) under Title IV-E. The relative becomes the child’s legal guardian, exits the foster care system, and continues to receive monthly assistance payments.9Administration for Children and Families. Title IV-E Guardianship Assistance
To qualify, the state agency must determine that returning home and adoption are both inappropriate permanency options, that the child has a strong attachment to the relative, and that the relative is committed to caring for the child permanently. Children 14 and older must be consulted. The monthly payment cannot exceed what the child would have received as a foster care maintenance payment. The federal government also requires states to reimburse the relative up to $2,000 in nonrecurring expenses tied to obtaining legal guardianship, such as attorney fees, court filing costs, and travel. The guardianship assistance agreement stays in effect even if the relative moves to another state.10Office of the Law Revision Counsel. 42 USC 673 – Adoption and Guardianship Assistance
Guardianship Versus Adoption
Adoption permanently terminates the birth parents’ legal rights. The caregiver becomes the child’s parent in the eyes of the law, with full authority over every decision. Birth parents cannot petition to have the child returned. The child’s last name can be changed, and no further court hearings are scheduled after finalization. Every state offers adoption assistance for relatives adopting children with special needs from foster care, with monthly payments that cannot exceed the former foster care rate.
Guardianship is less final. Birth parents retain certain rights, including the right to visit and to petition a court to return the child by showing changed circumstances. The guardianship ends when the child reaches adulthood. The child’s last name doesn’t change, and the court may set mandatory visitation terms the guardian must follow. Guardianship assistance programs exist in roughly 40 states and several tribal nations.
Neither option is inherently better. Adoption fits when the birth parents’ involvement has ended and the caregiver wants permanent, unqualified legal authority. Guardianship fits when the family wants to preserve the birth parents’ connection, or when cultural norms make legally severing the parent-child relationship feel wrong.
Where to Get Help Navigating the System
The Family First Prevention Services Act created a federal funding stream for kinship navigator programs that help caregivers find and access services they’re eligible for but often don’t know about: legal aid, financial assistance, counseling, respite care, and other community resources.11Child Welfare Information Gateway. Family First Prevention Services Act – PL 115-123
States can receive federal reimbursement for up to 50 percent of their spending on these programs, regardless of whether the children served meet Title IV-E income eligibility, provided the program meets evidence-based practice standards rated at least “promising” by a federal clearinghouse.12Administration for Children and Families. Kinship Care Not every state has a navigator program yet, but the number is growing. A local 211 helpline or the child welfare agency can tell you whether one operates in your area.