Vermont Foster Care Stipend: Reimbursement Rates and Financial Support

One of the first questions people ask about fostering in Vermont is whether the state pays enough to actually cover a child's expenses, or whether foster families end up subsidizing the system out of pocket. The honest answer is that Vermont's reimbursement rates are structured to cover the basics — room, board, clothing, and incidentals — but they are not generous, and the gap between what the state pays and what raising a child actually costs depends heavily on the child's age, needs, and how far you drive for visits and appointments.

Here is what the numbers actually look like.

Daily Maintenance Rate Schedule

Vermont calculates foster care reimbursement as a daily rate, not a monthly lump sum. The amount depends on two variables: the child's age and their Level of Care (LOC) score. LOC 1 is the standard rate for children with typical needs. LOC 2 applies to children with moderate behavioral or medical needs, and LOC 3 is for children requiring specialized care from foster parents with advanced training and experience.

These rates are based on the proposed FY2023-FY2025 rate schedules published by the Vermont Legislature. Actual rates are adjusted periodically and confirmed by DCF at the time of placement.

To translate these into monthly figures: a foster parent caring for a school-age child at the standard LOC 1 rate receives approximately $655 per month. A teenager at LOC 2 brings in roughly $806 per month. At the highest tier — LOC 3 for a teen with significant needs — the monthly total is around $936.

These payments are non-taxable. The IRS treats foster care maintenance payments as exempt from federal income tax, and Vermont follows the same treatment at the state level.

Emergency and Specialized Rates

Not every placement follows the standard rate schedule. Two common exceptions:

Emergency flat rate: When a child is placed on an emergency basis — often with little to no notice — the foster family receives a flat rate of approximately $30.00 per day for the first 30 days. After that initial period, the rate reverts to the standard LOC-based schedule determined by the child's assessed needs. The emergency rate is designed to compensate for the chaos of an unplanned placement where the foster family may need to buy essentials immediately.

Specialized care rate: For children requiring 24-hour medical or psychiatric supervision — typically in a therapeutic foster home — a rate of up to $200.00 per day can be approved by the Deputy Commissioner of Family Services. This level of care involves intensive case management support and is reserved for the most complex placements.

Additional Financial Supports Beyond the Daily Rate

The daily stipend is not the only financial support available. Vermont offers several supplemental programs that many foster families never learn about because they are poorly advertised and require separate applications.

Clothing vouchers: If a child enters care without adequate clothing — which happens frequently, especially in emergency removals — an initial clothing voucher of $100 can be issued immediately through the district office.

Child care subsidy: Working foster parents can receive a monthly child care subsidy of up to $600 for children ages 0 to 12. These funds go directly to the licensed child care provider, not to the foster family. This is significant in a state where quality child care often costs $1,000 or more per month.

Mileage reimbursement: Vermont's rural geography means foster parents drive. A lot. Family visits at DCF district offices, therapy appointments at regional hubs, medical specialist visits in Burlington — these trips add up fast, especially in the Northeast Kingdom or southern Vermont where round trips of 100 miles are routine. The state reimburses mileage at the current state employee rate for case plan-related travel. Expenses must be submitted within six weeks, or reimbursement may be denied.

Medicaid coverage: All foster children in Vermont are automatically enrolled in Vermont Medicaid (Green Mountain Care), which provides comprehensive coverage including primary care, dental, vision, and mental health services. Foster parents pay no co-pays or premiums for a foster child's medical care.

WIC and school meals: Foster children are automatically eligible for the Women, Infants, and Children (WIC) program and free school meals through the National School Lunch Program.

VFAFA Children's Activity Fund: The Vermont Foster and Adoptive Family Association provides up to $100 per year per child for extracurricular activities — dance, sports, camp fees, and similar activities that help children maintain normalcy.

The Financial Self-Sufficiency Requirement

Here is where the numbers create tension for some prospective families. Vermont requires applicants to demonstrate financial self-sufficiency during the licensing process. You must show that your household income covers your own expenses — mortgage, utilities, groceries, vehicle costs — without factoring in foster care reimbursement. DCF reviews tax returns, pay stubs, and a household budget.

The policy rationale is straightforward: reimbursement payments exist to cover the child's needs, not to supplement the family's income. In practice, this means foster care in Vermont is not a viable path for families who are already struggling financially. The state wants families who can absorb the unpredictable costs that fall between the cracks — the gas station stop on the way to a late-night emergency visit, the replacement shoes when a child outgrows theirs mid-month, the birthday gift that does not fit neatly into any reimbursement category.

What the Stipend Actually Covers (and What It Does Not)

At the LOC 1 rate for a school-age child, you are working with roughly $655 per month. That needs to cover the child's food (their share of your grocery bill), clothing, personal hygiene items, school supplies, entertainment, and incidentals. For a teenager at $723 per month, add the higher food costs and social expectations that come with adolescence.

What the stipend does not cover — and where foster families consistently report out-of-pocket costs — includes:

• Transportation beyond reimbursed visits: Driving a child to school activities, friends' houses, or weekend outings is on you.
• Cell phones for teenagers: Many teens in care need a phone for safety and contact with birth family, but it is not a covered expense.
• Holiday and birthday expenses: DCF does not provide separate funding for gifts or celebrations.
• Home modifications: If your home needs safety upgrades to pass inspection (well water treatment, fire egress improvements, wood stove barriers), those costs come from your own pocket.

Our Vermont Foster Care Licensing Guide includes a financial planning worksheet that maps the actual costs of fostering against reimbursement rates, so you can build a realistic household budget before you apply. It also details every supplemental program available — including ones that district offices frequently forget to mention — and provides templates for the mileage tracking and expense reports you need to submit on time to avoid losing reimbursement.

Planning Ahead

The families who manage the financial side of fostering best are the ones who treat reimbursement as a partial offset, not a break-even proposition. Vermont's rates are modest compared to states like California or New York, but the cost of living in rural Vermont is also lower. The real variable is not the daily rate — it is the driving, the unexpected needs, and the time commitment that no stipend fully compensates.

If you are weighing the financial side alongside everything else, download the Vermont Foster Care Licensing Guide for the full breakdown of rates, supplemental programs, and the financial documentation DCF expects during your home study.

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