Indiana families who adopt will receive more financial support following change to subsidy programs

Under the updated programs, caregivers can receive 100% of the financial support a child was entitled to while in the state’s foster care system.

Indiana families who adopt or take guardianship of a child in the state’s foster care system will receive a boost in financial assistance as part of a new change to state-sponsored subsidy programs. 

The Indiana Department of Child Services (DCS) announced the change to its existing programs — called the Adoption Assistance Program and Guardianship Assistance Program — on Wednesday. 

Under the updated programs, caregivers can receive 100% of the financial support a child was entitled to while in the state’s foster care system. According to a press release, families can negotiate with DCS to receive financial support beyond this 100% threshold depending on the family or child’s individual circumstances. Before the change, families received at least 50% of a child’s eligible financial support. 

DCS Director Eric Miller said in a news release there are families in Indiana who want to adopt or provide guardianship but are worried about the additional costs.

According to the DCS’s adoption statistics, there were 1,903 adoptions in Indiana in 2023. That is a drop from about 2,400 adoptions in 2019. 

“By making assistance more readily available, we are creating more opportunities for Hoosier children to find their forever home and better supporting the families who make that happen,” Miller said.

According to the DCS, the subsidies families receive are based on the state’s Foster Care Maintenance Payment and their child’s Child and Adolescent Needs and Strengths (CANS) score. A child with a higher CANS score will likely receive a higher subsidy. 

DCS already provides stipends to unlicensed kinship caregivers — relatives, godparents, stepparents or other individuals who have a close personal connection with a child in Indiana. Through the program, which the Indiana General Assembly approved in 2023, DCS has provided more than $10.1 million to kinship caregivers in the state. 

The estimated cost of this change will be $7.9 million for Fiscal Year 2025, more than 60%  of which will be paid by federal resources. DCS will cover the remaining $3 million for with existing resources and will incorporate future needs into subsequent budget requests, the agency said.

In 2022, lawmakers increased the adoption tax credit to $10,000. Previously it was capped at 10% of the federal adoption tax credit up to a maximum amount of $1,000.

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