How Much Do Foster Parents Get Paid in North Dakota?

The short answer: North Dakota pays a daily maintenance rate based on the child's age, and for most placements you'll see between $900 and $1,110 per month. But calling it "payment" misframes what these funds are. The state is explicit — foster care reimbursements are intended to cover the child's costs, not to supplement the foster family's income. That distinction has tax implications, and it shapes how licensing specialists evaluate financial stability during the home study.

Here's what the numbers actually look like, and what else comes with a placement.

Standard Maintenance Rates (Effective July 1, 2025)

North Dakota calculates maintenance on a daily rate multiplied by the number of days the child is in your home. The rates as of July 2025 are:

These rates are among the higher figures in the region. They're reviewed periodically by the legislature and HHS, and have increased in recent years as the state works to recruit and retain licensed families.

The payment is not a salary. North Dakota's Children and Family Services (CFS) policy is clear that maintenance rates are calculated to cover food, clothing, shelter, and day-to-day expenses for the child. Foster families are expected to demonstrate during the home study that they can financially support their household without depending on the reimbursement.

What Else Comes With a Placement

Initial clothing allowance. When a child arrives without adequate clothing — which happens frequently, especially in emergency placements — the state provides up to $400 for initial clothing. This is a one-time allowance for each new placement.

Medicaid coverage. Every child in North Dakota foster care is automatically enrolled in ND Medicaid. This covers medical, dental, prescription, and mental health services. Foster parents do not pay out of pocket for the child's healthcare; they coordinate appointments and keep records, but the billing goes directly to Medicaid.

Respite reimbursement. If you use respite care — having another licensed family care for your foster child temporarily so you can take a break — North Dakota reimburses respite providers at approximately $60–$80 per overnight and up to 12 hours of daytime care per week for non-overnight respite.

Treatment Foster Care (TFC) Rates

If you're licensed through Nexus-PATH Family Healing, the state's primary provider of Treatment Foster Care, the financial picture is significantly different. TFC placements involve children with significant emotional, behavioral, or psychiatric needs, and the daily rate through Nexus-PATH is approximately $313 per day.

That figure includes administrative support, intensive case management, and additional training requirements. It's not a straight reimbursement to the foster family — a portion funds the agency's clinical services — but it does reflect the higher level of support and expectation involved in therapeutic placements. Families interested in TFC should inquire directly with Nexus-PATH about how their specific payment structure works.

What Kinship and Relative Caregivers Receive

Grandparents, aunts, uncles, siblings, and close family friends who become licensed "Identified Relative" foster parents receive the same daily maintenance rates as unrelated foster families. The key word is licensed. An unlicensed relative who informally cares for a child is not eligible for state maintenance payments.

North Dakota has worked to expand its kinship licensing track. The "Identified Relative" license is child-specific — it authorizes you to care for that particular child, not unrelated placements — but it comes with the same financial support as a standard license.

For grandparents specifically: yes, grandparents can receive foster care payments in North Dakota, provided they go through the licensing process. The state offers a relative waiver (SFN 844) that can waive certain non-safety standards to speed the process for kinship placements, but the physical safety requirements and background checks still apply.

The Tax Question

Foster care maintenance payments in North Dakota are not taxable income at the federal or state level. Under Internal Revenue Code Section 131, qualified foster care payments are excluded from gross income. This applies to standard maintenance payments; it may not apply to amounts the state characterizes as service fees for specialized care.

If your placement involves a TFC rate or any unusual fee structure, confirm the tax treatment with your tax advisor. The general rule holds in most cases, but the details matter.

Financial Stability Is Still Required

One thing that surprises prospective foster parents: the state will look at your finances during the home study and confirm that you can maintain your household without the foster care reimbursement. This doesn't mean you need to be wealthy. It means your existing income — from employment, retirement, or other sources — should cover your mortgage or rent, utilities, food, and other obligations. The licensing specialist is evaluating whether a placement disruption (a child leaving unexpectedly) would create financial hardship.

For families in North Dakota's energy sector working oil patch shifts, this often requires documenting income carefully, since W-2 employment history may show gaps or variability.

Ready to Start the Process

If you're weighing whether the financial picture makes sense for your household, the broader guide to North Dakota foster care licensing — covering eligibility, training, the home study, and what to expect from your first placement — is at /us/north-dakota/foster-care/.

The financial piece is one part of a larger picture. The families who do this work over time consistently say the reason they stay isn't the reimbursement — but understanding the numbers clearly before you start helps you go in prepared.

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