• There are government sponsored subsidies to help cover the costs of an adopted child's physical, medical, therapeutic and educational needs.



• Most assistance is based on the needs of the adopted child regardless of the family's financial resources, though those resources will be considered when determining the amount of the subsidy.



• Many children waiting in foster care (children with special needs) are eligible for adoption assistance.
  


• Assistance may be short-term or may last until the adopted child reaches maturity (age 18 or 21) depending on the state's requirements.
  


• Assistance can come from local, state or federal funds.
  


• Subsidies may be available to waiting children who do not qualify for Title IV-E benefits.
  


• An adopting family must apply for the assistance through their county or private agency social worker. It will be processed through the State Department of Human Services. All adoption assistance agreements should be signed before the adoption is finalized.
  


• Obtaining adoption assistance after finalization is very difficult, though it is possible to request assistance retroactively and you can appeal a negative decision.

Some other sources of financial assistance for adoptive families are listed below:

Reimbursement of non-recurring adoption expenses

Reasonable and necessary adoption-related expenses, as defined by the state, may be reimbursed to the adopting family of a child who meets the state's criteria for eligibility on a one-time basis per child. For an adoptive family to be eligible for reimbursement the state must have determined that:

1.  The child should not or cannot be returned to the home of the birth parents.

2.  There exists a specific factor or condition such as age, membership in a 
      sibling group, presence of physical, mental or emotional challenges which
      make it reasonable to conclude that the child cannot be placed with adoptive 
      parents without providing adoption assistance. The family must receive prior
      approval for the expenses from their state agency.

3.  The request for reimbursement must be made prior to the finalization of adoption.

Qualifying expenses may include:

• The family assessment (homestudy, health and psychological examinations)
  
• Court costs and attorney fees
  
• Reasonable costs for transportation, food and lodging for the child and/or the adoptive parents when necessary to complete placement
  
• Home modifications to accommodate a disability.
  

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Reimbursement information by state:

Colorado	maximum of $800 per child
Missouri	maximum of $2,000 per child
Nevada	maximum of $250 per child
New Mexico	maximum of $2,000 per child
Oklahoma	maximum of $1,200 per child (up to $2,000 on a case-by-case basis)
South Dakota	maximum of $1,500 per child
Utah	maximum of $2,000 per child
Wyomings	maximum of $2,000 per child

• For more information or information on other states, please refer to http://www.childwelfare.gov/adoption/adopt_assistance
  
  
• Please contact your state adoption manager and/or tax expert for specific information.

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Federal Tax Credit
Public Law 111.148, the Patient Protection and Affordable Care Act, was signed into law on March 23, 2010. Section 10909 of the Act extended the Adoption Tax Credit for two more years (January 1, 2010 - December 31, 2011) and expanded the program in the following way:

• For tax year 2010, the amount of the credit was increased from $12,170 to $13,170 per child with a finalized adoption. For tax year 2011, the amount of the credit will be a minimum of $13,170 (it may be indexed for inflation).

Because the adoption tax credit will be refundable, families who have smaller tax liability will now be able to benefit from the credit for adoptions finalized in 2010 and 2011.

Note:  Refundable is the key word. It means that the parents do not need to owe the government money to receive the full tax credit for adoption. It means that no matter if/how much the parents owe the government, even if it is zero, they will get a credit refund of $13,170. Receipts/documentation of adoption expenses are not necessary.

• Please refer to the IRS for formal legal guidance.

* Information taken from Voice For Adoption and Child Welfare Information Gateway.

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Employee Benefits Program
See your employer.

Special Subsidies for Adoptive Families in the Military
Check your Family Support Center for details.

Adoption Loans
Talk to your banker or credit union.
Contact the National Adoption Foundation for information about grants and loans.

Grants
Various foundations make grants to help defray the cost of adoption.

National Adoption Foundation provides a variety of financial support to adoptive families and for expenses.


The Adoption Exchange urges you to ask your social worker about available subsidies when adopting any child with special physical, mental, medical and emotional needs.