Subsidized
Adoption: A Source of Help for Children with
Special Needs and Their Families
In every State there are children with special
needs waiting for adoptive families. In the
past, most of these children would wait forever.
The costs of care and services were major
obstacles to parents who would otherwise adopt
and love them. Adoption subsidies, also known
as adoption assistance, remove the obstacles
of the past. Financial help and services are
now available for children with special needs
and their adoptive parents.
There are two major sources of adoption assistance:
the Federal
Title IV-E program under the Social Security
Act and the States' programs which vary State
by State. Each State's program is different
and it is very important for families interested
in obtaining adoption subsidies to contact
their local department of social services
to determine what is available in their State.
The information presented below is divided
under each question into sections on the Federal
IV-E program and the State programs.
What Kind of Financial Help Is Available?
Federal IV-E Adoption Assistance Program
Under the Federal Title IV-E (part E section
470 thru section
479A) -adoption assistance program, payments
to the parents of an eligible child are available
for the ordinary and special needs of the
child. Such payments are not designated for
a specific purpose such as medical expenses,
maintenance (that is, living expenses), or
special services. The funds may be used for
any identifiable need of the child. The maximum
payment may not exceed the amount that would
have been paid for maintenance for that child
if he were in a foster home.
A child for whom Title IV-E adoption assistance
is provided is automatically eligible for
medical assistance under Title XIX (Medicaid)
and for social services under the Title XX
plan in each State, as though he were an Aid
to Families with Dependent Children (AFDC)
recipient.
Payments can continue until the child reaches
age 18, or until age 21 if the State determines
continuation is warranted, and they continue
in the event the family moves to another State.
Adopting parents do not have to meet any
financial eligibility criteria in order to
receive adoption assistance for the Title
IV-E eligible child. That decision would not
interfere with the child's eligibility for
Medicaid or Title XX services, or the parents'
eligibility for reimbursement of non-recurring
adoption services.
In order for a child to be eligible for Title
IV-E Adoption Assistance, he or she must have
been eligible for AFDC or Supplemental Security
Income (SSI) programs under the Social Security
Act before adoption.
State Adoption Subsidy Programs
State adoption subsidy programs provide assistance
for children who are not eligible under the
Federal IV-E program. Adoption subsidies take
various forms in the different States, depending
upon the child's needs and the State agency's
program.
Under the State-funded programs, there are
generally three types of adoption subsidies:
- medical,
- maintenance, and
- special services
Medical subsidies cover 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. Some
States provide medical assistance through
Medicaid which also covers health care needs
not covered by the adopting family's health
insurance policy.
Maintenance or support subsidies are direct
payments to the adopting family to help cover
the child's living expenses.
Special service subsidies are usually one-time
payments to cover a child's emergency or extraordinary
need; less often, they are repeated payments
for services not covered by the medical or
maintenance subsidies. It is important to
check with the State to determine what is
an allowable cost.
Under both Federal and State programs, adoptive
parents of a child with special needs are
eligible for a one-time payment of non-recurring
adoption expenses incurred in connection with
adoption. Such expenses include reasonable
and necessary adoption fees, court costs,
attorney fees, and other expenses directly
related to the legal adoption of the child
with special needs.
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How Does the Adopting Family's Financial
Status Affect the Subsidy?
Federal IV-E Program
Federal law does not require the financial
status of the adoptive parents to be factor
in determining the child's eligibility for
adoption subsidy under Title IV-E. However,
State agencies take into account the parent's
circumstances and the needs of the child when
establishing the subsidy amount under the
Federal program. The State agency and adopting
parents enter into an adoption assistance
agreement that specifies the amount of payment
(if any) and other services available. The
specific terms of the agreement may be readjusted
with concurrence of the adopting parents,
as the child's needs change, the State agency's
foster care maintenance payments change, or
the parents' circumstances change.
State Adoption Subsidy Programs
For State-funded subsidies, some States have
income/means tests for prospective adoptive
parents that determine how much a family may
receive. The State agency reviews each child's
and parent's situation at the time of the
adoptive placement and usually on a yearly
basis thereafter.
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What If the Adopting Family Disagrees with
a State Agency's Decision to Change the Type
or Amount of the Child's Subsidy?
Federal IV-E Program
Adoptive parents may appeal the agency's
decision by using the State's fair hearing
and appeals process. Generally this means
that the family files an appeal through the
head of the local agency to the State Title
IV-E agency. The local agency should be able
to inform the family about steps in the State
fair hearing process. The family may wish
to be represented by an attorney in this process
or seek the advice of an attorney in this
process or seek the advice of advocacy organizations
for children with special needs.
Adoptive parents may also consult the Program
Operations Division, U.S. Children's Bureau,
Administration on Children and Families, P.O.
Box 1182, Washington, D.C. 20201 or (202) 205-8671
for advice on an appeal for the IV-E program.
State Adoption Subsidy Programs
States differ in their appeals processes
for State adoption subsidies. Families should
ask the local agency director about the existence
of and steps in the State appeals process.
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Are There any Federal Tax Benefits Available
for Families Who Adopt a Child Eligible for
Adoption Subsidies?
The recently enacted adoption tax credit
allows a $6,000 tax credit for families who
adopt a child with special needs. It is recommended
that adoptive parents contact the IRS about
tax exemptions and deductions for the child
for whom they receive adoption assistance.
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Who Are the Children with Special Needs?
Each State agency has its own definition
of "special needs" used to identify children
eligible for adoption subsidies. Generally,
the child's special needs relate to age (an
older child); membership in a minority group;
a medical condition (e.g., chronic illness);
siblings (brothers and sisters who should
not be separated); or handicaps (a child with
a physical, emotional, or mental disability).
Some children have more than one special need;
all must be legally free for adoption. Most
of the children have experienced unusual stresses;
some have been abused, neglected, or abandoned.
Each child needs a permanent, caring family
who can help him or her feel accepted, valued
and wanted.
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How Does a Family Apply for an Adoption
Subsidy?
When it is determined that the child is "a
child with special needs," the possibility
of an adoption subsidy is discussed with the
prospective adoptive parents. Most children
registered with agencies as having special
needs have already been classified as eligible
for subsidies. Once a petition for adoption
has been filed, a final determination of the
child's eligibility under Title IV-E or the
State program is made. The family applies
for the subsidy to the State agency, through
the local office. A determination is made
and an adoption assistance agreement is signed
that specifies the types of subsidy to be
provided. This usually should be done before
placement and must be done before finalization
of the adoption. Each State has its own regulations
for a State-only subsidy as well as the procedures
to be followed for Title IV-E adoption assistance.
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Can Foster Parents Apply to Adopt an Eligible
Child?
Yes. A majority of children with special
needs are adopted by their foster parents.
This option is often considered by the State
to be in the child's best interests because
emotional ties are already established. The
foster parents, following approval as adoptive
parents, enter into an adoption assistance
agreement with the State agency if a subsidy
is requested. Foster parents can also apply
to adopt a child with special needs who is
not already in foster care placement with
them.
[Back to Top]
What Kinds of Services Are Available for
the Child and the Adopting Family?
Federal IV-E Program
Under Title IV-E, the child is eligible for
any social service that is available to an
AFDC-eligible child under the State's Title
XX program. These services may include counseling,
legal, pre- and post-adoption, information
and referral or transportation services. Each
State's Title XX program is different and
families should check with the State agency
to determine what services are available.
Also, additional services may be available
that are not provided by Title XX or Medicaid,
but these must be specified in the adoption
assistance agreement.
In the event that an adoptive family moves
from one State to another, if a needed service
specified in the adoption assistance agreement
is not available in the new State of residence,
the State making the original IV-E adoption
assistance payment remains financially responsible
for providing the specified service.
State Adoption Subsidy Programs
For children receiving State-only subsidies
the specific services to be provided are included
in the agreement.
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How Do Parents Who Have Already Adopted
a Child with Special Needs Feel about the
Adoption Subsidy Program?
Studies show that the vast majority of parents
are satisfied with the program. In one study,
most parents interviewed said that they would
consider adopting another child with special
needs; those who said they would not cited
their age or the size of their family as reasons
-- not dissatisfaction with the program or
the child.
Further, studies have shown that neither
adopting parents nor adopted children attached
a stigma to the receipt of adoption assistance.
Additionally, most parents interviewed reported
that the agency social worker was adequately
informed about the community resources, eligibility
requirements for subsidy, approval, review
and recertification procedures, and legal
issues on assisted adoption.
Approximately 70 percent said that more information
and activities for parents after adoption
would be useful, such as parent support groups.
A California study found that 90 percent
of the parents indicated their overall satisfaction
with the program by responding that they would
definitely encourage friends interested in
adopting to participate in the program.
Written by Cynthia Ragan, M.S.W., 1988.
For more information on adoption subsidy,
contact:
National Adoption Assistance Training Resource
and Information Network
c/o NACAC
970 Raymond Avenue
Suite 106
St. Paul, MN 55114-1149
http://www.nacac.org
[back to the
Adoption Education Center]
This material may be reproduced
and distributed without permission; however,
appropriate citation must be given to the National
Adoption Information Clearinghouse.
Internet links added by Adoptions.com
2000 - 2003
For more information, contact the National
Adoption Information Clearinghouse at naic@calib.com.
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