Foster care payments in Alabama range from $527.57 to $571.48 per month for standard placements, with the exact amount set by the child’s age. Children with significant medical or behavioral needs are placed in therapeutic foster care, which pays substantially more. The Alabama Department of Human Resources issues these payments monthly, and separate reimbursements are available for costs the board rate doesn’t cover.
Monthly Board Rates by Age
The standard board payment is tiered by age. According to the most recently published DHR rate schedule:
- Birth through age 2: $527.57 per month
- Ages 3 through 5: $543.43 per month
- Ages 6 through 12: $556.84 per month
- Ages 13 and older: $571.48 per month
The board rate covers everyday necessities: food, clothing, personal care items, and routine transportation.1Alabama Kinship Navigator. AFAPA Handbook – DHR Foster Care Board Payments It does not cover therapy, specialized educational services, or significant medical expenses, which run through separate channels.
DHR adjusts rates periodically based on legislative budget decisions and cost-of-living considerations. The payment amount reaches you the same way whether the child’s care is federally funded through Title IV-E or covered by state appropriations; that distinction is handled behind the scenes by DHR.
Higher Pay for Therapeutic Placements
Children with significant behavioral, emotional, or medical challenges may be placed in therapeutic foster care. These placements carry higher compensation because the demands on the caregiver are greater. Alabama’s therapeutic system operates through contracted child-placing agencies. You receive a “difficulty of care” payment from the agency on top of a board rate from DHR, and the difficulty-of-care amount is set in the contract between you and the agency.2Alabama Department of Human Resources. Therapeutic Foster Care Manual
Enhanced therapeutic placements for children with the most intensive needs have historically carried daily rates ranging from $160 to $350 depending on the child’s assessed tier.3Alabama Department of Human Resources. Therapeutic Foster Care/Enhanced TFC Questions and Responses When a child’s needs stabilize and they enter a step-down phase, the board rate drops to a reduced level of up to $8 per day from DHR, and the difficulty-of-care payment is cut to 50 percent of the standard rate.2Alabama Department of Human Resources. Therapeutic Foster Care Manual
Becoming a therapeutic foster parent generally requires additional training or certification beyond standard licensing, and DHR and the contracting agency reassess the child’s needs regularly.
What the Board Payment Doesn’t Cover
Medical and Dental Care
Foster children generally qualify for Medicaid, which covers most routine medical and dental care. When Medicaid doesn’t cover a needed service, orthodontic treatment being a common example, DHR may authorize payment through local flex funds after other resources have been explored. If a child has private insurance through a parent’s existing plan, that coverage is used first. For children who don’t qualify for Medicaid at all, DHR can purchase medical insurance using local funds.4Alabama Department of Human Resources. Health/Medical Care
Childcare
Working foster parents fall into a DHR priority category for the state’s childcare subsidy program. Families in this priority group may have their parent fee waived entirely, making childcare effectively free for the foster child.5Alabama Department of Human Resources. Child Care Fact Sheet
Travel
Foster parents frequently drive children to court hearings, family visitations, and medical appointments. When travel is authorized, the state reimburses mileage at 72.5 cents per mile as of January 2026, matching the IRS standard mileage rate.6Department of Finance – Alabama.gov. Travel Mileage Rate for 2026 Keep a log of your trips and hang on to documentation of the appointments.
Respite Care
Every foster family is eligible for seven days of respite care per year, when another approved caregiver temporarily looks after the child. The respite caregiver receives $20 per day for a child in traditional foster care, or $35 per day for a medically fragile child.7Alabama Department of Human Resources. Supports to Foster Parents Your DHR resource worker tracks the days used.
Are Foster Care Payments Taxable?
Generally, no. Under Section 131 of the Internal Revenue Code, qualified foster care payments, including both standard board payments and difficulty-of-care payments, are excluded from your gross income as long as you receive them through a state foster care program.8Office of the Law Revision Counsel. 26 USC 131 – Certain Foster Care Payments
There is a cap on the exclusion for payments other than difficulty-of-care: the tax-free treatment applies to no more than five foster individuals age 19 or older in your home. For most Alabama foster parents caring for children under 19, this cap doesn’t come into play. Difficulty-of-care payments remain excludable as long as you care for fewer than 11 children under 19 or fewer than six individuals age 19 and older.9Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC
Because these payments are excludable, agencies generally do not issue 1099 forms for them. If you do receive one, you can still exclude the payments by reporting the amount and then subtracting it on Schedule 1. A 1099 does not mean you owe tax on foster care payments.
Effect on SNAP and a Foster Child’s SSI
Whether foster care payments affect SNAP eligibility depends on how the foster child is classified within your household. Under federal SNAP regulations, if the foster child is treated as a “boarder” rather than a household member, which is the standard treatment, the foster care payment is excluded from your household income entirely.10eCFR. 7 CFR 273.9 – Income and Deductions Receiving foster care payments should not reduce your SNAP benefits.
The interaction with a foster child’s Supplemental Security Income is more complicated and depends on the funding source of the foster care payment. Title IV-E payments count as income based on need to the child and can affect SSI. Payments funded through Title IV-B or Title XX are treated as social services and don’t count as income. Payments funded entirely by the state under a needs-based program are excluded as assistance based on need.11Social Security Administration. SI 00830.410 Foster Care Payments Your DHR caseworker can tell you which category applies to a specific placement.
Payments After Age 18
Alabama does not cut off foster care at 18. No youth ages out before turning 19, and young adults may remain in foster care until age 21. Payments continue for eligible youth past their 18th birthday as long as they stay in an approved placement.
Youth between 18 and 21 who previously left foster care can also request re-entry if they face identifiable safety risks that would normally trigger child welfare services for a younger person. Re-entry requires either that the case remains on the court’s administrative docket or that the youth signs an Agreement for Foster Care. Transitional and independent living placements are also available for young adults who were in Alabama foster care on or after their 18th birthday and haven’t yet turned 21.
What to Do If a Payment Is Wrong
Start at the county level. Contact your assigned DHR caseworker or the county financial officer to request a correction. Many payment issues are clerical errors and get resolved through an informal conversation.
If that doesn’t work, you can file a formal written appeal. Any clear written statement to DHR saying you want to present your case to a higher authority counts as a formal hearing request; there’s no specific form. The deadline matters: you have 30 days from the action you’re disputing, or 30 days from when you learned about it.12Alabama Administrative Code. Alabama Admin Code 660-3-15-.02 – Hearing Requests Miss that window and you lose the right to a hearing on the issue.
At the hearing, an impartial administrative judge reviews evidence from both sides. If you win, payments are adjusted and any amounts owed are issued retroactively. An unfavorable decision can be appealed through Alabama’s Circuit Court system, which requires formal legal filings; most foster parents would want an attorney at that stage.