Adoption Assistance for Children Adopted From Foster Care

by Child Welfare Information Gateway

In every State there are children with special needs waiting in foster care for adoptive families. The most recent data estimate that 126,000 children are available to be adopted from foster care. In the past, the costs of care and services were major obstacles to parents who would otherwise adopt and love these children, and most were not placed for adoption. The Adoption Assistance and Child Welfare Act of 1980 provided the first Federal subsidies to encourage the adoption of children from the nation's foster care system. These subsidies, known as adoption assistance, serve to minimize the financial obstacles to adoption. In addition, other types of assistance often are available to help with medical care or other services. Adoption assistance serves to remove barriers and contribute to an increase in adoption of children with special needs.

This factsheet discusses this assistance by reviewing:

• Federal Title IV-E adoption assistance
• State adoption assistance
• Arranging adoption assistance

Federal Title IV-E Adoption Assistance

Adoption assistance from the Federal government is administered under the Federal Title IV-E adoption assistance program. Payments to the parents of an eligible child with special needs can take the form of either one-time (nonrecurring) adoption assistance or ongoing (recurring) adoption assistance. These funds are paid through the State agency or through another public or nonprofit private agency and are available for children being adopted from foster care.

Nonrecurring Adoption Assistance. Nonrecurring adoption assistance is paid or reimbursed for one-time reasonable and necessary expenses directly related to the legal adoption of a child with special needs that have not been reimbursed from other sources or funds. These reimbursable expenses may include the home study fees, attorney fees, replacement of the birth certificate, and travel for visits to the child (including mileage, lodging, and meals). The Federal maximum for this type of assistance is $2,000 for each adoptive placement. Some expenses in excess of this amount may be tax deductible.

Recurring Adoption Assistance. Ongoing adoption assistance provides funds that may be used for any identifiable need of the child. These usually take the form of monthly payments to the parents of eligible children. The maximum payment amount may not exceed the amount that would have been paid for maintenance if the child had remained in a foster home in that State. Payments can continue until the child reaches age 18 (or until age 21 where the State determines that the child has a physical, mental, or emotional disability), and these payments continue even if the family moves to another State. While adoption assistance is not taxable, portions could be taxed if the family cannot prove that the amount spent on the child's support was more than the amount of assistance received. Families are advised to consult a tax professional.

Family Income and Determination of Need. Federal law mandates that the resources of the adoptive parents cannot be considered when determining a child's eligibility for Title IV-E adoption assistance. However, the circumstances of the family and the needs of the child may both be taken into consideration when determining the amount of assistance.

Medical Benefits. Children eligible for Title IV-E adoption assistance also are eligible for medical benefits under Title XIX (Medicaid). States may offer additional services through Title XX, which is a flexible block grant of monies from the Federal government to State governments. Title XX services may include counseling, legal aid, respite care, information, referral, and transportation services. States may offer additional adoption preservation services as well. Each State's Title XX program is different. Families should check with their State agency to determine what services are available.

State Adoption Assistance

State adoption assistance programs provide assistance for children with special needs who are not eligible under the Federal IV-E adoption assistance program. This assistance is funded by State and/or county dollars and is designed for children who are neither AFDC- nor SSI-eligible prior to adoption. Eligibility criteria for these programs vary by State, but State adoption assistance programs generally fall into three categories:

Medical assistance covers some or all the costs related to a child's specific medical condition that are not covered by the family's health insurance, as well as associated therapy, rehabilitation, and special education. (Most States call this assistance Medicaid; other States call it something else.)

About the Author

www.childwelfare.gov
Formerly the National Clearinghouse on Child Abuse and Neglect Information and the National Adoption Information Clearinghouse, Child Welfare Information Gateway provides access to information and resources to help protect children and strengthen families. A service of the Children's Bureau, Administration for Children and Families, U.S. Department of Health and Human Services.