Adoption Subsidy (Encyclopedia)

Adoption Subsidy: Are You Eligible?

Adoption subsidies are financial assistance from federal and state governments to families adopting children meeting certain requirements. Children with special medical, emotional, and/or developmental needs may be eligible, as are older children and sibling groups. An adoption subsidy is provided in these cases to make it easier for parent to adopt, knowing that they will be able to afford the special care these children will need.

An adoption subsidy may be provided in one of three different ways. Monthly financial assistance helps remove financial barriers for families adopting special needs children. Almost all children in public foster care are eligible for this kind of assistance, which will vary from child to child. Annual reviews are conducted to be sure the child is still eligible for these subsidies, which are based solely on the needs of the child. In other words, the adoptive parents' financial resources are not a factor in determining eligibility.

Another form of adoption subsidy is medical assistance. Children in subsidized adoptions are eligible for medical assistance through a Medicaid-managed care program.

The third form of adoption subsidy is a one-time subsidy, a nonrecurring payment which may be provided in addition to the monthly assistance. The purpose is to cover specific expenses or special services related to the adoption. Expenses that may be reimbursed include such items as adoption placement fees, court costs, attorney fees, and health/psychological examinations.

Before a child can be determined eligible for an adoption subsidy, he or she must meet two criteria. A local department of social services or a private agency must hold guardianship of the child, and the child could not be placed for adoption without the subsidy. In addition, the child must also meet one of four other criteria. The child must either be between the ages of 6 and 18 or a member of a minority group or must have a physical / mental / emotional handicap or must be a member of a sibling group to be placed together.

Providing an adoption subsidy has enabled thousands of children to be adopted when otherwise they would have remained in foster care. It is a program that is undeniably useful to children while saving taxpayer money at the same time.