Foster Parent Guide
Financial Support for Foster Parents
Let's talk about money — honestly and clearly. Fostering isn't supposed to cost you, and there's more support available than most people realize.
The honest truth: You will not get rich fostering. The reimbursement is meant to cover the child's expenses — not provide you an income. But the financial support is real, and it's designed so that fostering doesn't create a financial burden on your family. If money is your main hesitation, read on — it's probably more manageable than you think.
💰 Monthly Board Rate (Reimbursement)
Every foster parent receives a monthly board rate — a payment from the state to cover the child's basic living expenses: food, clothing, shelter, daily supervision, and personal needs. This is not taxable income (it's a reimbursement, not a salary).
Pennsylvania Board Rates (General Overview)
PA sets minimum daily board rates that vary by the child's age and needs level. These are minimum rates — private agencies and some counties pay higher.
- •Rate structure: Varies by age group (younger children, school-age, teens) and care level (basic, specialized, therapeutic)
- •Payment frequency: Typically monthly, per diem (daily rate × days in placement)
- •Higher rates for: Children with higher needs, therapeutic placements, teens
Use our zip code search to see current rates for your area. Rates are set by the state and updated periodically.
What it's meant to cover: Food, clothing, housing (proportional share of rent/mortgage and utilities), school supplies, personal care items, recreation, and daily supervision.
👕 Clothing Allowance
In many states, including Pennsylvania, foster parents receive an initial clothing allowance when a child is first placed — because children often arrive with very little. Some areas also provide seasonal clothing allowances.
Pennsylvania Clothing Allowance
- •An initial allowance is typically provided at placement
- •Amount varies by county and agency — ask your caseworker
- •Many agencies and nonprofits also have clothing closets with free items
Pro tip: Don't buy a whole wardrobe before the child arrives. Wait until you know their size and preferences. Kids have opinions about their clothes — let them choose when possible.
🏥 Healthcare (Medicaid)
All children in foster care qualify for Medicaid. This is federal — it applies in every state. This means their healthcare is covered at no cost to you.
What Medicaid Covers for Foster Children
- ✓Doctor visits and physicals
- ✓Dental care
- ✓Vision and glasses
- ✓Prescriptions
- ✓Mental health services (therapy, counseling)
- ✓Specialist visits
- ✓Hospitalization
- ✓Early intervention services (for young children)
You'll receive the child's Medicaid card (or information to obtain one) shortly after placement. Many children in care need medical appointments soon after placement — your agency will guide you on timing requirements.
🍼 WIC (Women, Infants & Children)
If you're fostering a child under age 5, they are automatically eligible for WIC — a federal nutrition program that provides formula, milk, cereal, fruits, vegetables, and other food items.
- •Children in foster care qualify regardless of your household income
- •Contact your local WIC office to enroll — bring the child's Medicaid info and placement paperwork
- •WIC provides specific food items via an EBT-like card that you use at the grocery store
- •This is a significant help for infant placements — formula is expensive
📋 Other Financial Support
Childcare Assistance
Foster children are typically eligible for subsidized childcare. In Pennsylvania, the Child Care Works (CCW) program helps cover daycare costs. Your caseworker can help you apply. This is especially important if you work outside the home.
Respite Care
Most agencies offer respite care — temporary childcare by another approved foster parent so you can take a break. This is usually provided at no cost to you. Don't feel guilty using it. Burnout helps no one.
Adoption Assistance (Subsidy)
If you adopt a child from foster care, you may qualify for ongoing adoption assistance — a monthly subsidy that continues after the adoption is finalized. Many children adopted from foster care also retain Medicaid eligibility. This varies by state and the child's needs.
Tax Benefits
Foster care board payments are generally not considered taxable income by the IRS if you're caring for the child through a licensed placement agency. Additionally, if you adopt a child from foster care, you may be eligible for the federal Adoption Tax Credit. Consult a tax professional for your specific situation.
Nonprofit & Community Support
Many communities have nonprofits that support foster families with clothing, supplies, furniture, holiday gifts, and more. Your agency can connect you with these resources. Our zip code search also shows local support organizations.
❓ Common Financial Questions
Is the reimbursement enough to cover everything?
It's designed to cover the child's basic needs. In reality, some foster parents find it covers most costs, while others supplement from their own budget for extras (activities, birthday parties, etc.). It varies by area and child.
Do I need to track how I spend the reimbursement?
Generally, no — the board payment is given as a lump sum and you're trusted to use it for the child's care. However, keeping basic records is smart in case questions come up.
What if a child arrives with nothing? Who pays for the first supplies?
Many agencies provide an initial clothing allowance and/or supplies. Nonprofits often help too. If you're out of pocket at first, talk to your caseworker — they can usually help retroactively or connect you with resources.
Can I foster if I'm not wealthy?
Yes. You need to demonstrate that you can cover your own household expenses without depending on the foster care reimbursement. But you don't need to be rich. The reimbursement is designed to cover the child's costs so fostering isn't a financial burden.
What happens financially if I adopt my foster child?
Adopting from foster care is typically free (no adoption fees). Many children qualify for ongoing adoption assistance (a monthly subsidy). They may also keep Medicaid eligibility. Ask your caseworker about the specifics for your child's case.
✅ The Bottom Line
Fostering is not meant to cost you money. Between the monthly board rate, Medicaid, WIC (for young children), childcare assistance, and community support — the system is designed to remove financial barriers.
Is it perfect? No. Will you sometimes spend out of pocket on extras? Probably. But the core costs of caring for a child are covered.
Don't let money be the reason you don't explore fostering. Talk to your local agency about the specific rates and support in your area.
See the Rates for Your Area
Enter your zip code to see the specific reimbursement rates and support organizations in your county.