How Much Is the Adoption Subsidy in Texas?

If you’re adopting a child from the Texas foster care system, you may be eligible for financial assistance to help support your growing family. This assistance is commonly known as an adoption subsidy—and it can make a significant difference when providing care for a child with special needs or unique circumstances.

In this blog, we’ll explain how much the adoption subsidy is in Texas, who qualifies for it, and what additional benefits adoptive families may receive.

WHAT IS AN ADOPTION SUBSIDY?

An adoption subsidy is a monthly financial assistance payment provided by the state of Texas to help families who adopt children from the foster care system. These payments are not income or wages—they are meant to help offset the costs of caring for a child who may have additional emotional, medical, or developmental needs.

Texas offers this support through the Adoption Assistance Program, which is administered by the Texas Department of Family and Protective Services (DFPS).

WHO QUALIFIES FOR AN ADOPTION SUBSIDY?

To be eligible for an adoption subsidy in Texas, the child must be considered “hard to place” or meet one or more of the following criteria:

  • Six years old or older
  • Part of a sibling group being adopted together
  • Identified as part of a minority ethnic group (as defined by DFPS)
  • Has a diagnosed physical, mental, or emotional disability
  • Has a documented history of trauma or neglect

Eligibility is determined during the adoption process, and the subsidy agreement must be approved before the adoption is finalized.

HOW MUCH IS THE ADOPTION SUBSIDY IN TEXAS?

The amount of the monthly subsidy depends on the child’s age, level of care required, and specific needs. Below are general payment ranges:

Level of CareMonthly Subsidy Amount (Approx.)
Basic Level$400 – $545
Moderate Level$545 – $667
Specialized Level$667 – $1,000+

Payments typically continue until the child turns 18. In certain cases—such as when the child has a disability or remains enrolled in school—assistance may extend until the child turns 21.

OTHER BENEFITS INCLUDED IN ADOPTION ASSISTANCE

Adoptive families may also receive:

1. Medicaid Coverage

Children adopted from foster care in Texas generally remain eligible for Medicaid, even after adoption.

2. Tuition and Fee Waiver

Adopted children may qualify for free tuition at public colleges and universities in Texas.

3. One-Time Reimbursement

Families can be reimbursed up to $1,200 per child for nonrecurring adoption-related costs, such as court fees, attorney fees, and travel expenses.

HOW TO APPLY FOR AN ADOPTION SUBSIDY

The adoption subsidy must be negotiated and approved before the final adoption hearing. Here’s how the process typically works:

  1. Complete a subsidy application through DFPS
  2. Provide documentation of the child’s eligibility
  3. Negotiate payment amount and terms with the caseworker
  4. Sign the Adoption Assistance Agreement before the adoption is finalized
  5. Begin receiving payments once the adoption is legally complete

It’s essential to work with an adoption attorney or experienced agency to ensure that all required steps are completed properly.

FREQUENTLY ASKED QUESTIONS

Is the subsidy taxable income?
No. Monthly adoption subsidies are not considered taxable income by the IRS.

Do I need to reapply each year?
No, but the state may periodically review the child’s eligibility and care level.

Can the subsidy be adjusted if the child’s needs change?
Yes. You can request a reassessment of the level of care if the child’s needs become more complex over time.

Can I receive a subsidy if I adopt privately or internationally?
No. Adoption subsidies are only available for children adopted through the Texas foster care system.

Key Takeaways: Adoption Subsidies for Texas Families

The adoption subsidy in Texas can range from a few hundred to over a thousand dollars per month, depending on the child’s individual needs. Combined with benefits like Medicaid and college tuition waivers, this support helps families provide long-term stability and care for children who need it most.

If you’re thinking about adopting from foster care, understanding the financial resources available can help you make an informed and confident decision.

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Contact The Law Office of Bryan Fagan, PLLC to schedule a consultation. Our legal team is here to guide you through every step of the adoption process, including applying for adoption subsidies and securing the support your family deserves.

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