How Much Do Foster Parents Get Paid?

If you’re considering becoming a foster parent, you may be curious about how foster parent payments work. Foster parents don’t earn a salary, but they are compensated for their services  through a monthly stipend that helps cover the cost of caring for a child. Each state sets its own stipend rates, and the non-taxable payment can be used only for certain purposes. The stipend amount may also depend on the individual foster child’s needs. For example, foster parents who care for medically complex kids may receive additional funds to cover treatments or medical supplies.

This guide takes an in-depth look at foster parent reimbursement, including what the stipend can be used to pay for, what can increase stipend rates, and other forms of financial aid for foster parents. 

The information on this page is for educational purposes only. Foster care stipend rates are set by state and local agencies and are subject to change. For the most accurate and up-to-date information, please contact your local department of social services or a licensed foster care agency in your area.

 

What is a Foster Care Stipend? 

The State pays foster parents a monthly stipend to reimburse them for some of the costs of raising a child. The size of the stipend and what it can be used for differ by geographic location and depend largely on the individual child’s age and situation, rather than a family’s income level. Foster parents receive a stipend for each child in their care, so a family raising multiple foster kids will receive multiple payments.

The stipend is not a salary and rarely covers all expenses, so it’s important for prospective foster parents to be financially stable. Most families won’t have much, if any, money left over after using the payment to buy necessities. However, the foster care stipend can help parents pay for many essentials.    

Each state determines what foster parents may or may not use their stipend for. Typically, the money can be used to pay for: 

• Food
• Clothing
• Bedding and other household necessities
• School supplies
• Personal hygiene items and services, such as haircuts
• Some household costs, including utilities and rent or mortgage payments
• Transportation-related costs, such as gas or public transportation fare
• Enrichment activities, such as extracurriculars

In certain states, foster parents may use their stipend to pay for childcare, while others do not. Some states provide a separate, additional payment exclusively for childcare.

How to Budget the Foster Care Stipend 

If you're new to foster parenting, developing a budget may be the last thing on your mind. However, budgeting your foster care stipend is important in maintaining a stable, functional home for the child or children in your care. There are a few ways to stretch your stipend and allocate funds in a way that keeps your household running smoothly.

• Focus on the Basics: The majority of the money should go towards essentials. Determine how much it will cost to buy healthy, nutritious meals and snacks for the week, and plan accordingly. Other necessities include seasonally-appropriate clothing and personal hygiene items, such as toothbrushes, soap, and deodorant.  

• Set Aside Money for Larger Expenses: You may not buy your foster child birthday presents or snow boots every day, but it's important to set aside funds for infrequent purchases nonetheless. Consider saving a portion of your stipend for expected but occasional expenses like field trip fees, holiday gifts, or seasonal purchases such as bathing suits and winter coats.
• Budget for Enrichment Activities: One of the most loving things you can do for a foster child is to give them a sense of normalcy. Music lessons, a visit to a museum or ball game, day trips, or dance classes are just a few ways to enrich a child's life and help them feel valued. Budgeting for activities and special interests ensures that you can afford to help your foster child flourish.
• Provide a Personal Allowance: There are many benefits to giving a child a regular personal allowance. While the amount of money ultimately depends on the child's age, young kids and teens alike can learn important financial management skills from budgeting their spending money. An allowance can also provide a sense of autonomy—something that is particularly valuable for many foster children. 

 

Key Factors That Influence Foster Care Payment Amounts 

So, how much do foster parents get paid, anyway? In truth, there's no single answer to this question. Many variables impact how much money foster parents receive each month, and every family's situation is slightly different. However, there are three main factors that determine stipend amounts.

State and Location

Every state determines its own base rate for foster care, including the maximum monthly rate per child. This amount can be as high as $1,432 in Alaska, while some foster parents in Utah receive less than $200 a month on average. 

Generally, foster care payments reflect local costs of living in a given state. Some states, such as Colorado and New York, further adjust for cost of living by county or district. Families living in expensive metropolitan areas may receive larger stipends, while those in rural or lower cost of living regions receive less. 

The Child's Age

A foster child's age significantly impacts reimbursement rates. Teenagers have costlier needs, including more food, more expensive clothing, school-related fees, and social and extracurricular activities. As a result, foster parents who care for teenagers and older kids typically receive larger stipends than those with younger children. In general, the older the child, the more money the foster parents will receive.

The Child's Level of Need

Therapeutic foster parents receive much larger stipends than average because they care for medically or behaviorally complex children and children who come from traumatic backgrounds. Their role is typically much more challenging than that of a typical foster parent, and they are compensated accordingly. The higher a child's needs, the more money the parents typically receive to pay for their specialized care.

Therapeutic foster parents undergo additional training, where they learn trauma-informed care strategies and crisis intervention techniques to help kids with behavioral, emotional, or mental health challenges. Therapeutic foster care training may also cover medical skills required to care for medically complex children. The monthly stipend can help reimburse parents for the cost of this training, which is more extensive than typical foster care education. 

Therapeutic foster parents may use the larger stipend to cover the cost of medical equipment or in-home health care. Funds can also be used to pay for medical and dental treatments and behavioral, physical, or developmental therapy. Many families spend a great deal of time going from appointment to appointment, and the stipend can also help pay for transportation expenses. 

Financial Considerations for Foster-to-Adopt

When a parent legally adopts their foster child, they no longer receive a foster care stipend. While they may continue to receive the monthly payment throughout the adoption process, the payment stops once the adoption is finalized. 

Some parents who choose the foster-to-adopt path are eligible to participate in the Adoption Assistance Program (AAP). Sometimes referred to as an adoption subsidy, the AAP is a federal program that offers financial assistance for parents who adopt children with special needs or circumstances that can make them difficult to place. These include children who:

• Are medically complex
• Have behavioral, mental, or developmental conditions
• Belong to certain ethnic backgrounds
• Must be placed with their sibling group
• Are teenagers or older children

 

According to a 2017 survey, around 93 percent of foster children qualify for some type of adoption assistance funding. 

Like the foster care stipend, the AAP subsidy is meant to help cover the costs associated with parenting a special needs child until the child turns 18. Therefore, the subsidy amount is determined according to the individual child's needs. Parents who foster-to-adopt a child typically receive less money through the subsidy than they did via the stipend. However, there are other federal and state programs that can help adoptive families thrive financially.

While laws differ from state to state, adopted kids often qualify for Medicaid, particularly if they have special medical or therapeutic needs. Programs are also available to help families pay for college and cover costs associated with the adoption process itself. Eligible adoptive parents may also claim the one-time adoption credit on their federal income taxes for up to $16,810.

Additional Financial Support for Foster Families

The monthly foster care stipend isn't usually enough to cover all of a family's expenses, and most foster parents must work outside of the home. However, there are many state and federal resources available to support foster families financially. Foster kids automatically qualify for a variety of programs, including:

• Medicaid: All foster children are eligible to enroll in this federal program, which provides free medical, dental, and behavioral health care. Medicaid covers a variety of core services and procedures, including emergency visits, lab services, and transportation to and from appointments. Other benefits vary by state, but may include services like eye exams and in-home health care.
• WIC (Women, Infants, and Children): WIC offers nutritional assistance for foster children under the age of 5 in the form of free food vouchers. These vouchers cover staples such as fresh fruits and vegetables, eggs, whole grains, and baby food. Benefit amounts are determined by the number of foster children living in the home. WIC also provides nutritional counseling and meal planning assistance from dietitians and health care professionals.
• Childcare Assistance and Head Start: Some states provide foster parents with subsidized childcare options or daycare vouchers. Foster children under the age of 5 are also eligible for the Head Start program. Head Start is a family-centered preschool program through the federal government that prepares kids to excel in school through early learning. 
• Annual Clothing Allowance: Most states give foster children a clothing stipend when they first enter care, and some provide an annual clothing allowance at the start of each school year. Allowances and how they may be used differ among states, and some require the stipend to be used within a certain period of time. Some states reimburse foster parents for eligible clothing purchases, rather than offering an allowance.

 

Sources

• Accessed on October 18, 2025. https://jri.org/foster-care/foster-care-stipend/
• Accessed on October 20, 2025. https://fostercare.com/myths-about-foster-care-stipends/
• Accessed on October 21, 2025. ​​https://worldpopulationreview.com/state-rankings/foster-care-stipend-by-state
• Accessed on October 22, 2025. https://cwig-prod-prod-drupal-s3fs-us-east-1.s3.amazonaws.com/public/documents/families-considering-foster-care-adoption.pdf?VersionId=YMTczD799sf0ZGPVZD_g2Gaf0bqg0c5M
• Accessed on October 22, 2025. https://www.medicaid.gov/medicaid/benefits/mandatory-optional-medicaid-benefits
• Accessed on October 22, 2025. https://www.fns.usda.gov/wic
• Accessed on October 22, 2025. https://acf.gov/ohs/about/head-start