How to Understand Covered Expenses When Fostering a Child in Illinois

Many prospective foster parents in Illinois wonder about the financial realities of foster care. You might be asking: Will I need to pay for everything out of pocket? What exactly does the monthly stipend cover? These are legitimate concerns, and understanding the financial support available is crucial to making an informed decision about foster care.

The truth is becoming a foster parent doesn’t require you to be wealthy or financially well-off. Illinois provides monthly stipends and additional support specifically designed to cover the costs of caring for foster children. But here’s what to expect: the system is more nuanced than simply receiving a check each month. Different expenses are covered in different ways, some require reimbursement, and certain costs fall outside the standard support structure.

This guide breaks down exactly what’s covered when you foster a child in Illinois, how much you can expect to receive, and what expenses you’ll manage yourself.

Understanding Illinois Foster Care Monthly Stipends

Illinois DCFS provides monthly foster care maintenance payments to help cover the basic costs of caring for a child. These payments are not income. You don’t pay taxes on them, and they’re not considered a salary for foster parents. Instead, they’re reimbursements designed to offset the expenses of providing for a child in your care [1].

The monthly stipend amount varies based on the child’s age. As of 2024, Illinois increased these rates to help foster families keep pace with inflation and rising costs [2]. Here’s the current breakdown:

Monthly Foster Care Payment Rates by Age (2024)

These 2024 rates represent an average increase of $74 per month compared to previous years, with families receiving between $52 and $111 more depending on the child’s age.

Important distinctions:

• Licensed foster parents receive the full rates shown above

• Unlicensed relative caregivers (family members caring for children without formal foster licensing) receive $388 per month, regardless of age

• Youth over 18 remaining in care through extended programs receive $586 per month, while those pursuing higher education receive $1,506 monthly

What the Monthly Stipend Covers

The monthly foster care payment is designed to cover four primary expense categories:

1. Board (Room and Housing Costs) This portion covers the child’s share of housing expenses: rent or mortgage, utilities, household supplies, and the cost of providing them a safe living space.

2. Food and Nutrition You’ll use part of the monthly stipend to provide three meals a day, snacks, and any special dietary needs the child may have.

3. Clothing Each monthly payment includes a specific clothing allowance (shown in the table above). This is meant to cover routine clothing purchases, replacements, and seasonal wardrobe needs.

4. Personal Allowance Children should receive an age-appropriate personal allowance from the monthly stipend to use for personal expenses, entertainment, and developing financial responsibility.

The monthly payment gives you flexibility to allocate funds where they’re most needed from month to month. One month you might spend more on clothing, another month more on food or activities. The stipend is structured to provide that discretion.

Medical and Dental Coverage: Fully Covered by the State

Here’s some important good news: you will not be responsible for medical or dental costs when fostering a child in Illinois.

All children in foster care receive:

• Full medical insurance through Medicaid

• Comprehensive dental coverage through Medicaid

• Mental health services and therapy as needed

• Prescription medications at no cost to foster parents

• Routine checkups, immunizations, and preventive care

You’ll take children to medical appointments and coordinate care, but the state directly covers these expenses. If counseling or therapy services are needed due to trauma or behavioral challenges (common for children in foster care), the state provides those services as well [3].

This means you won’t receive surprise medical bills or need to file insurance claims. The Medicaid coverage ensures healthcare costs don’t create financial burden for foster families.

School-Related Expenses: What’s Covered and What’s Not

Education expenses for foster children are partially covered through specific allocations:

Covered School Expenses

Annual school supplies allowance: $50 per child This covers basics like notebooks, pens, pencils, folders, and standard supplies needed at the beginning of the school year.

School transportation: If the local school district doesn’t cover transportation costs, DCFS may authorize a special service fee to reimburse foster parents for school transportation expenses.

Expenses You’ll Manage

While the school supplies allowance helps, you’ll likely cover additional educational costs from the monthly stipend:

• School-required materials beyond basic supplies (calculators, art supplies, specific project materials)

• School fees for activities or programs

• School lunches (though many foster children qualify for free or reduced lunch programs)

• Extracurricular activities and sports participation fees

The monthly stipend is designed to have enough flexibility to cover these expenses, but it’s important to know they’re not separately reimbursed.

Childcare and After-School Care: State-Funded Support

If you work outside the home or need childcare while fostering, Illinois provides significant support:

Childcare is paid directly by the state to licensed childcare providers

This means:

• You don’t pay childcare costs out of pocket and seek reimbursement

• The state contracts directly with licensed daycare centers and after-school programs

• This applies to both full-time daycare for younger children and after-school care for school-age kids

To access this benefit, you’ll work with your DCFS caseworker to arrange approved childcare through licensed providers. The state pays the provider directly based on established payment rate schedules.

This is one of the most valuable covered expenses, as childcare costs can easily exceed $1,000 per month per child in many Illinois communities.

Special One-Time Payments and Additional Support

Beyond the monthly stipend, Illinois DCFS provides several one-time payments and special allowances:

Initial Placement Allowance
When a child is first placed in your home, DCFS may provide additional funds to cover immediate personal hygiene and clothing needs. This helps when children arrive with few belongings and need essentials quickly.

Annual Summer Activity Allowance
DCFS may provide up to $260.35 per child per year for summer camp or similar recreational activities. This recognizes that summer programs often carry significant costs beyond regular monthly expenses.

Transportation Reimbursement
A yearly transportation reimbursement is available to help offset the costs of driving children to appointments, visits with biological family, therapy sessions, and activities.

What’s NOT Covered: Expenses You’ll Manage

It’s important to understand what expenses fall outside the standard coverage structure. These costs typically come from your own resources or the monthly stipend allocation:

Entertainment and recreational activities:

• Movies, amusement parks, family outings

• Toys, games, books, electronics

• Birthday parties and holiday celebrations

• Sports equipment and hobby supplies

Extended family activities:

• Family vacations that include foster children

• Special outings or experiences beyond routine activities

Home modifications:

• Safety equipment required for licensing (may vary by agency)

• Bedroom furnishings or additional space needs

Personal care beyond basics:

• Haircuts and personal grooming

• Special occasion clothing (prom dresses, formal wear)

• Age-appropriate technology (phones for teens, computers for school)

The monthly stipend is designed to have some flexibility to cover these expenses, but foster parents often supplement with their own funds to provide the childhood experiences and opportunities they want children to have.

Therapeutic and Specialized Foster Care: Higher Payment Rates

Illinois recognizes that some children require additional support and care due to behavioral challenges, medical needs, or trauma histories. The state offers specialized placement levels with increased financial support [4].

Types of Specialized Placements

Therapeutic Foster Care: Designed for children with histories of severe trauma and significant emotional or behavioral needs. Therapeutic foster parents receive additional training and higher monthly stipends to reflect the increased demands.

Specialized Foster Care: For children with specific medical, developmental, or behavioral needs that require specialized attention and care strategies. Specialized rates are established while the child is in foster care based on assessed needs.

Emergency Placement: Immediate placements made within hours when children must be removed from unsafe situations. Emergency foster parents must be available quickly and prepared for children arriving with acute needs.

These specialized placement types come with higher monthly payments than traditional foster care rates. The exact amounts depend on the level of care required and are determined through assessment processes. (Register here: https://letitbeus.org/become-a-foster-parent-form/)

Understanding the Financial Reality: What This Means for You

Here’s the honest assessment: the monthly stipend covers basic needs, but many foster parents find themselves contributing additional resources to provide the childhood experiences they want children to have.

You should foster if:

• The monthly stipend covers the direct costs of adding a child to your household (food, utilities, basic clothing)

• You can absorb occasional additional expenses for activities, celebrations, and experiences

• You understand this isn’t a source of income, but rather cost reimbursement

• You’re motivated by commitment to children’s wellbeing, not financial benefit

You don’t need to foster if:

• You’re depending on foster care payments as primary household income

• You can’t absorb any expenses beyond the monthly stipend

• Financial stress would prevent you from providing stable, patient care

The financial support structure in Illinois is designed to make foster care accessible to families across different income levels. You don’t need to be wealthy. But you do need enough financial stability that the stipend genuinely reimburses child-related costs rather than serving as income you’re relying on.

How Payments Work: Timing and Logistics

Understanding the payment process helps you plan financially:

Monthly payments are distributed:

• Electronically to foster parents’ bank accounts

• Typically on a consistent schedule each month

• Prorated for partial months when placements begin or end mid-month

You’ll work with your DCFS caseworker to:

• Set up direct deposit

• Report any changes in placement or expenses

• Request reimbursements for approved expenses like transportation

• Access additional support allocations when needed

The payment system is generally reliable and consistent. However, it’s wise to maintain some financial cushion for the transition period when you first begin fostering, as there may be initial expenses before your first payment arrives.

Covered Expenses Comparison: Traditional vs. Specialized Foster Care

Questions to Ask Before You Begin

As you consider fostering and evaluate the financial aspects, here are important questions to discuss with agencies like Let It Be Us:

About monthly support:

• What exactly is the monthly stipend for children in the age range I’m considering?

• How does the payment change if I care for multiple foster children?

• What happens to payment if a child goes on a trial home visit?

About covered expenses:

• Which expenses require pre-approval versus automatic coverage?

• How do I access the transportation reimbursement?

• What documentation do I need to keep for reimbursable expenses?

About special circumstances:

• What additional support is available if a child has special medical or behavioral needs?

• How do I access enrichment funds for older youth?

• What happens financially when a placement is extended or becomes an adoption?

Let It Be Us provides free informational events and webinars where you can get these questions answered with no pressure or commitment. Their team guides prospective foster parents through the entire licensing process, including understanding the financial support structure.

Taking the Next Step

Understanding covered expenses is just one piece of the foster care decision. The financial support structure in Illinois is designed to make foster care accessible, but the real question isn’t whether you can afford to foster. It’s whether you have the compassion, commitment, and emotional capacity to provide stability and care for children during difficult transitions.

You don’t need to be perfect. You don’t need a big house or unlimited financial resources. You need realistic expectations about what fostering involves, including the financial aspects, and a willingness to show up for children who need temporary homes.

If you’re ready to learn more:

• Attend a free Let It Be Us webinar to ask questions and hear from experienced foster parents

• Visit the Heart Gallery of Illinois to see children and teens actively waiting for permanent families

• Connect with Let It Be Us to explore foster parent recruitment programs

References

[1] Illinois DCFS. (2024). Resources for Current Foster Parents. https://dcfs.illinois.gov/loving-homes/fostercare/resources-for-current-foster-parents.html

[2] WREX Newsroom. (2022, June 23). Illinois DCFS increasing monthly support to foster parents. https://www.wrex.com/news/illinois-news/illinois-dcfs-increasing-monthly-support-to-foster-parents/article_768633c0-f33c-11ec-afde-f71b496ac3e3.html

[3] Illinois DCFS. (2024). Foster Care. https://dcfs.illinois.gov/loving-homes/fostercare.html

[4] Illinois DCFS. (2023). FY 2023 Rate Study of Residential and Foster Care Services. https://dcfs.illinois.gov/content/dam/soi/en/web/dcfs/documents/about-us/reports-and-statistics/documents/dcfs-rate-study-final-report-by-maximus-us-services.pdf

[5] The Annie E. Casey Foundation. (2024). Child Welfare and Foster Care Statistics. https://www.aecf.org/blog/child-welfare-and-foster-care-statistics