Foster Care Funding

The Federal government provides funds to States to administer child welfare programs. State grant programs have their own matching requirements and allocations, and all require that funds go to and be administered by State child welfare agencies, or in some programs, Indian Tribes or Tribal organizations. In most states foster children are eligible for Medicaid cards which cover medical, dental, and counseling services. Foster parents receive reimbursement for the child’s food and clothing. Some states provide a clothing voucher at the time of the child’s first placement. Others provide clothing vouchers at the beginning of each school year. Foster children have the same minimum health benefits as children in the Aid to Families with Dependent Children (AFDC) program. Most Federal funds for AFDC and foster children’s health care come through Federal Medicaid (Title XIX of the Social Security Act).


Inside Foster Care Funding