How Much Do Foster Families Get Financially?

Yes, foster parents receive financial assistance, but it’s important to understand how it works. These payments are not wages or salaries; they are designed to help cover the child’s living expenses. The funds help with essentials like food, clothing, school supplies, transportation, and utilities. The exact amount can vary based on several factors such as the child’s age, location, and whether the child has special needs. While the support is a big help, it usually doesn’t cover every single expense, so many foster families still contribute out-of-pocket to give children opportunities for growth and enrichment.

As of 2025, Virginia’s foster care rates range from about $644 per month for children ages 0–4 to $905 per month for teenagers. Older youth generally receive a higher rate because their needs, such as clothing, food, and activities, tend to cost more. Families caring for children with special or extraordinary needs may receive additional funds to offset the cost of therapies, medical care, or specialized services. These rates are set by the Virginia Department of Social Services and are adjusted periodically. Compared to other states, Virginia’s rates fall near the middle, offering fair support while keeping pace with local living costs.

Payments are only part of the picture. Benefits for foster carers can include free or reduced-cost childcare, healthcare coverage through Medicaid for the foster child, clothing allowances, and even respite care when parents need a short break. Many states and counties also partner with community organizations to provide foster carer discounts at local businesses, gyms, museums, and attractions. These extra supports recognize that raising a child involves more than just paying for food and housing—it’s about giving them access to enriching experiences and opportunities. For many families, these additional benefits can make a real difference in balancing both care and cost.

No, stipends are not the same nationwide. Each state sets its own rates, and sometimes counties within the same state have slightly different amounts. States with higher living costs, like California or New York, tend to offer larger stipends compared to states with lower costs of living. Payments may also depend on whether the placement is considered regular foster care, treatment foster care, or an emergency placement. Understanding these differences helps foster families plan realistically and avoid comparing their situation to families in other states.

In most cases, no. Foster care stipends are considered reimbursements, not taxable income. This means that families do not pay federal or state income taxes on them. However, every family’s tax situation is unique. For example, if a foster parent runs a foster home as part of a larger licensed agency, tax rules may differ. Families are encouraged to keep records and consult a tax professional to understand their exact obligations. Generally, though, for the majority of foster parents, these payments are not something you’ll need to worry about when tax season comes around.

Yes, under certain circumstances. A foster child can sometimes be claimed as a dependent if the placement was arranged through a state agency or court order, and if the child lived with you for more than half the year. In these cases, you may qualify for valuable credits such as the Child Tax Credit or the Earned Income Tax Credit. These benefits can add meaningful financial relief to families, especially when placements last more than a few months. Because tax rules can be tricky, it’s always a good idea to confirm with the IRS guidelines or a tax advisor before filing.

Not always. While stipends cover the basics, children need more than just food and clothing. Foster families often invest their own money in extracurricular activities, school trips, vacations, or hobbies that help children feel included and supported. For example, a teen might want to join a sports team or take music lessons, and while stipends help with core needs, families usually cover those extras themselves. Most foster parents view the payments as a helpful foundation, but they know the true costs of raising a child often extend beyond the reimbursement.

Each child placed in your home comes with a separate stipend, so the support increases with the number of children. For example, fostering two siblings means you receive two stipends. This helps cover the additional expenses of providing food, clothing, and activities for multiple children. It’s worth noting, however, that while payments increase, so does the responsibility. More children in the home means more appointments, school events, and needs to juggle. Still, many families find fostering siblings rewarding because it helps keep children connected to one another during a challenging time.

Yes. Many states, including Virginia, recognize that long-term foster parents play a crucial role in providing stability. Supports may include respite care (temporary, short-term care provided by another foster parent), additional training stipends, or even small bonuses for families who maintain placements over extended periods. These supports not only ease the workload but also show appreciation for the commitment families make. Some counties also provide access to support groups, counseling, or financial incentives to encourage long-term caregiving.

When children turn 18, they may age out of the foster system. However, in Virginia and many other states, support doesn’t always end there. Payments can continue until age 21 if the young person remains in school, training, or certain approved programs. Afterward, independent living stipends and services may be available to help them transition into adulthood, covering things like housing, education, and job training.