What Are Adoption Subsidies?

Adoption subsidies are financial payments made on behalf of special needs children who are placed for adoption. Whether subsidy is awarded is based on the needs of the child and there is no income means test for the adoptive parents.

What is a “special needs” child?

In Alabama, a special needs child is a child with one or more of the following conditions:

·         Physical or mental limitations;

·         Emotional or behavioral difficulties;

·         Recognized high risk of physical or mental disease;

·         A member of a sibling group of three (3) or more being placed together for adoption;

·         A child of African American heritage age two or older; and

·         A child of any race eight years of age or older

What is the amount of adoption subsidy?

Adoption subsidy cannot exceed the regular foster care board payment rate. Difficulty of care rates are negotiable based upon the exceptional needs of the child. Whenever foster care rates are changed, subsidies may be adjusted at the time of the yearly rectification.

When do subsidies begin?

Adoption subsidy payments can begin at any time after the adoptive placement. However, agreements for adoption subsidy must be signed prior to the final decree of adoption.

What about Medicaid benefits with subsidy?

Not all children are automatically eligible for Medicaid coverage to continue after adoption placement. In some instances, the child must have a special needs for medical or rehabilitative care. 

How do I apply for adoption subsidy?

A child in the permanent custody of the Department of Human Resources is certified eligible for subsidy by the county social worker. The worker determines if the child is special needs prior to making the adoptive placement. The offer of subsidy is made during the adoptive placement process.

Credit: Alabama Department of Human Resources info packet for pre-adoptive families.