What Is a Foster Care Subsidy?

How Should a Foster Care Reimbursement or Foster Care Subsidy Be Used?

foster care

Subsidy, by definition, is a financial grant provided by the government. Foster care subsidy is a predetermined amount of money sent by the government to the foster parents on a monthly basis for the care of the foster children that have been placed within the foster home.

Where Does the Money Come From?

Within the United States the money comes from each individual state’s budget that has been set aside for the use of foster care. County and federal monies may also make up the foster care budget.

How Is the Foster Care Subsidy Amount Determined?

Each state or agency has a predetermined subsidy amount based on the state’s budget. A foster family may receive a larger subsidy depending on the needs of the child. Subsidy is usually determined based on the child’s:

  • age
  • medical needs
  • behaviors

Again, each state and agency is different.

What Is the Proper Use of the Foster Care Subsidy?

  • clothing for the foster children
  • food (foster children can also be a part of the free lunch program at your local school)
  • transportation
  • recreation
  • Some school fees – such as for sports, art classes, lab fees, agenda books, or other extra curricular activities
  • hygiene/personal care products
  • anything the child stands in need of

Remember, if an item was bought specifically for a foster child, than that item becomes the property of the child and should leave with the child when she moves. When purchasing larger items for the child’s bedroom, make sure the child understands whether the item is her property or that of the foster home. This will alleviate any misunderstandings or problems when the child is ready to move home or to an another foster home or adoptive placement.

Do Agencies Track the Usage of the Foster Care Subsidy?

Some agencies require that foster parents track the use of the foster care subsidy. Other agencies require that a dollar amount go directly to the personal care of the child, such as diapers, clothing, or recreation. Receipts or a budget may be a monthly requirement for some agencies in order to prove that the foster children are being taken care of properly with the subsidy.

Do Some People Misuse the Foster Care Subsidy?

Yes, unfortunately some families do take advantage of the foster care reimbursement. Before becoming a foster parent you must prove that you are financially fit and can take care of your family’s needs without the foster care subsidy. If you are unable to care for your own family without the aid of the subsidy, you can not become a licensed foster parent. However, even those who can prove that they do not need the monthly subsidy, go ahead and become foster parents and misuse the funds for their own personal gain. Agencies do their best to keep this from happening.

Foster Care Subsidy Is NOT:

  • A great way to supplement your income.
  • A home business.
  • A way to pay off your mortgage.
  • A way to buy a jet ski or motorcycle.
  • A way to send your kids to college.
  • A way for your kids to get name branded clothing such as GapAbercrombie, or Hollister (fill in your child’s favorite brand here).

Foster Care is a wonderful experience and can add much to your life, it shouldn’t, however, add to your pocket book.

Source: about.com

Check These Out:


So, Tell Us What You Think:

As Realtors®, we may not give any legal or accounting advice, but may provide names or websites for informational use only.
pacific-sothebys-logo © MMVII Sotheby's International Realty Affiliates LLC. A Realogy Company. All Rights Reserved. Sotheby's International Realty® is a registered trademark licensed to Sotheby's International Realty Affiliates. An Equal Opportunity Company. Equal Housing Opportunity. Each Office is Independently Owned and Operated.
Wendy Moldow, Realtor®

CAL BRE #00875611

3702 Via de la Valle, Suite 202 C Del Mar, CA 92014

Pacific Sotheby's International Realty

CALL OR WRITE US TODAY: 619.339.3339 wendymoldow@me.com
Please Follow us, Become a Fan, Subscribe…
sandicor_logoThis information is deemed reliable but not guaranteed. You should rely on this information only to decide whether or not to further investigate a particular property. BEFORE MAKING ANY OTHER DECISION, YOU SHOULD PERSONALLY INVESTIGATE THE FACTS (e.g. square footage and lot size) with the assistance of an appropriate professional. You may use this information only to identify properties you may be interested in investigating further. All uses except for personal, non- commercial use in accordance with the foregoing purpose are prohibited. Redistribution or copying of this information, any photographs or video tours is strictly prohibited. This information is derived from the Internet Data Exchange (IDX) service provided by Sandicor®. Displayed property listings may be held by a brokerage firm other than the broker and/or agent responsible for this display. The information and any photographs and video tours and the compilation from which they are derived is protected by copyright. Compilation © 2014 Sandicor®, Inc.