Understanding Adoption Subsidies and Financial Assistance
Written by: Barbara Thornell Ginn (FL & OH)
The decision to grow your family through adoption is an exciting milestone, but it also brings practical and financial considerations. Navigating the available resources and understanding how various federal and state benefits interact can be complex.
To help families understand their options, Foster + Bloom Family Formation Law Group has compiled this comprehensive guide on adoption subsidies, survivor’s benefits and Supplemental Security Income (SSI).
What is an Adoption Subsidy?
According to SmartAsset, “In 2025, the average annual cost of raising a child under five in the United States reached $27,743.” This amount included additional housing, food, transportation, healthcare, miscellaneous items and childcare for a working couple. In addition to the cost of raising children, the process of adoption can be expensive as well.
In certain circumstances, there may be resources to assist the family in offsetting some or all of the adoption expenses. In addition to benefits that may assist with adoption expenses, ongoing financial assistance is available for certain, qualified children throughout their minority once the adoption finalizes.
Understanding Federal Adoption Assistance (Title IV-E)
Federal adoption assistance may be available under Title IV-E of the Social Security Act, Section 473, “Adoption and Guardianship assistance program.” [42 U.S.C. 673]. This section sets out the eligibility requirements, as well as any exceptions thereto. For children who meet the qualifications, this allows for receipt of ongoing monthly maintenance, Medicaid, and a one-time nonrecurring reimbursement of adoption expenses.
Further, some states may offer additional benefits (i.e., if you adopt from the Florida foster care system, the child will receive a tuition waiver at Florida’s public universities, public community colleges and public vocational schools until the child is 28 years of age, exempting the student from paying tuition and fees, including lab fees).
State-Based Support Options
Alternatively, many states also offer state adoption assistance, which provides adoption assistance to some children who do not meet the criteria for Title IV-E.
As this is a state-based resource, the eligibility criteria and other requirements may vary from state to state.
The Critical Requirement for Written Pre-Approval
It is imperative that approval of the adoption assistance be received in writing (i.e., the appropriate form should be completed and signed) prior to finalization of the adoption.
When examining potential adoption assistance that may be available based upon the facts of your case, it is important to recognize that in addition to adoption assistance varying by State, there may also be a different eligibility determination reached based upon applicable facts in the private adoption setting than for children adopted from foster care.
We encourage you to speak with an experienced attorney to learn more about the possibility of subsidy in your unique circumstances.
Adopting a Relative: Will You Lose Social Security Survivor’s Benefits?
A common question arises when families experience unexpected tragedies: If a niece’s father unexpectedly passed away, and a relative wants to adopt her to give her a permanent home, will they lose the Social Security Survivor’s benefits?
No! As long as survivor’s benefits are in place before the adoption, they will continue even after the adoption.
We are often contacted after tragic events, including the death of a child’s parent(s). In that situation, it is important to determine whether Social Security Survivor’s benefits have been sought.
If the child’s parent(s) worked during his/her/their lifetime and paid Social Security taxes prior to their death, the child may be eligible to receive Social Security Survivor’s benefits. In order to determine the eligibility, an application must be submitted and a determination made. Once Social Security Survivor’s benefits have been approved, they will remain in place even after an adoption.
However, if you complete an adoption prior to approval of Social Security Survivor’s benefits, the opportunity to obtain this benefit on behalf of the child will be foreclosed. We encourage you to speak with an experienced attorney to learn more about the possibility of subsidy in your unique circumstances.
Can You Receive an Adoption Subsidy if the Child Receives Social Security Survivor’s Benefits?
Yes, if the child meets the eligibility requirements for adoption subsidy, the child may receive BOTH survivor’s benefits as well as ongoing adoption assistance!!
In order for Social Security Survivor’s benefits to be available after an adoption, they must be in place before the adoption.
Furthermore, if the child meets the eligibility criteria to receive federal or state ongoing adoption assistance as discussed above, the child will continue to receive the Social Security Survivor’s benefits and also receive adoption subsidy/ongoing adoption assistance.
We encourage you to speak with an experienced attorney to learn more about the possibility of subsidy in your unique circumstances.
Can You Receive Title IV-E Adoption Subsidy if the Child Receives Supplemental Security Income (SSI)?
Yes, if the child meets the eligibility requirements for Title IV-E, the child may receive BOTH Supplemental Security Income (SSI) as well as ongoing adoption assistance, depending on the circumstances!!
If the child meets the eligibility criteria to receive Title IV-E adoption subsidy, the child can be approved for it even where the child is already receiving Supplemental Security Income (SSI).
It is important to note, however, that the SSI will usually be reduced dollar-for-dollar by the adoption assistance payments. Depending on the monthly amount of Title IV-E subsidy, the SSI may be significantly lowered or even eliminated.
Because SSI is income-based and Title IV-E is not income based, it is often recommended to pursue Title IV-E adoption assistance to ensure the ongoing monthly benefit paid out by SSI is not reduced or lost in the event of a change in income. It is important to report receipt of Title IV-E adoption subsidy to the Social Security Administration to avoid overpayment. We encourage you to speak with an experienced attorney to learn more about the possibility of subsidy in your unique circumstances.
Can You Receive Adoption Subsidy in a New Adoption if the Child Was Previously Adopted from Foster Care and Received Title IV-E Subsidy?
Yes, if the child was determined eligible for Title IV-E adoption assistance payments in a prior adoption, a new eligibility determination is not required. Although a new application for assistance will need to be submitted, the child should nonetheless receive Title IV-E subsidy following the new adoption, provided the criteria set forth in the Social Security Act are met.
Section 473(a)(2)(C) addresses factors for consideration where a child previously adopted was determined eligible for adoption assistance, and the prior adoption was dissolved, the rights of the adoptive parent(s) has/have been terminated, or the adoptive parent(s) is/are now deceased.
Note that different states can have different interpretations of the responsible state (i.e., whether the state of the prior adoptive parents or the state of the new adoptive parents will provide the monthly support payments), so it is important to speak with an attorney about this at the earliest opportunity possible to fully understand the intricacies related to this determination.
Important Financial Impact Considerations for Adoptive Parents
When navigating any of the federal or state assistance programs outlined above, families must evaluate how these changes interact with their existing household benefits.
It is important to understand that receipt of any benefit previously not received could impact continued receipt of other benefits, specifically those that are income-based, which you receive (i.e., if you as the adoptive parent receive SSDI or SSI, the receipt of other benefits may impact your eligibility of your SSDI or SSI).
We encourage you to thoroughly review all benefits you currently receive (and the potential impact to them) as you decide whether to pursue any additional benefits.
Navigating Your Next Steps With Care and Support
Securing the proper financial assistance and subsidies can make a profound difference in your family’s ability to provide a stable, supportive home for an adopted child. However, because eligibility rules, timing constraints, and interstate regulations vary significantly, it is vital to approach these decisions with care.
If you have questions about adoption subsidies, survivor benefits, or how a future adoption might impact your current household finances, the team at Foster + Bloom Family Formation Law Group is here to guide you every step of the way.
Why I Practice in Family Law: "Changing the trajectory of even one child's life is an indescribable feeling."Meet the Author
Barbara Ginn,
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