Do grandparents get paid for raising grandchildren?

It depends on legal status and which programs the child qualifies for. If you have legal custody or guardianship, the child typically qualifies for a foster care board-and-care rate or kinship guardianship assistance (KinGAP/GAP), which can run $500–$1,000+ per child per month depending on your state. Even without legal custody, the child can often receive a child-only TANF grant based on the child's income (usually $0), not yours — so your income does not disqualify the child. Contact your state's child welfare agency and your local Kinship Navigator Program (see below) to find out exactly what is available in your state.

What is a child-only TANF grant and how much is it?

A child-only TANF (Temporary Assistance for Needy Families) grant is a cash assistance payment made on behalf of the child — not the caregiver. Because it is based on the child's household income and not the grandparent's income, many grandparents with moderate or even higher incomes qualify. The grandparent's income is excluded from the eligibility calculation. Monthly amounts vary by state, typically ranging from roughly $100 to $450 per child. To apply, contact your local TANF/social services agency and ask specifically for "child-only TANF for kinship caregivers." You do not need formal legal custody in most states to apply.

What is kinship guardianship assistance (KinGAP) and how do I apply?

Kinship Guardianship Assistance (KinGAP, or the Guardianship Assistance Program/GAP in some states) is a federal/state program that provides ongoing monthly payments to relative caregivers who become the legal guardian of a child who was in foster care. Payments are typically set at the foster care board rate for the child's age and needs. The child must have been in state custody and placed with you for at least six consecutive months before you assumed guardianship. The program also provides Medicaid coverage for the child and may include one-time reimbursements for legal fees. Contact your state's child welfare agency to find out whether the child is eligible and how to start the application.

Can grandparents claim grandchildren on their taxes?

Yes, in many cases. If the grandchild lives with you for more than half the year and you provide more than half of their financial support, you may be able to claim them as a qualifying child for the Child Tax Credit (up to $2,000 per child for tax year 2025, subject to income phase-outs), the Earned Income Tax Credit (EITC), the Child and Dependent Care Credit (for daycare costs), and Head of Household filing status. The rules have specific tie-breaker provisions if a parent also claims the child. A free tax preparer through IRS VITA (Volunteer Income Tax Assistance) can walk through your specific situation at no cost.

How do I get SNAP and Medicaid for my grandchildren?

Children living with grandparents or other relative caregivers generally qualify for SNAP (food assistance) and Medicaid/CHIP separately from the caregiver's own eligibility. Even if your income is too high for you to receive SNAP, the children in your household can often be included in a "separate household" filing based on their share of income. For Medicaid and CHIP, eligibility for children is more generous than for adults — most states cover children with household incomes up to 200–300% of the federal poverty level. Apply through your state's Medicaid agency or health.gov marketplace. You do not need legal custody for CHIP enrollment in most states; you may need a school enrollment form or a letter from yourself attesting to the child's residence.

What is the Kinship Navigator Program and how does it help?

Kinship Navigator Programs — funded under Title IV-E of the Social Security Act — are specifically designed to help relative caregivers identify and access the full range of benefits and services available to them and the children they care for. A navigator will walk you through TANF child-only grants, Medicaid, KinGAP eligibility, tax benefits, school enrollment rights, respite care, and local support groups — often in a single phone call or appointment. Programs are run by state child welfare agencies and community organizations. Find your local Kinship Navigator through GrandFamilies.org or by calling 211 and asking for "kinship caregiver support."

What happens to my Social Security or pension if I am raising grandchildren — can creditors take it?

Social Security benefits (retirement, disability/SSDI, survivor) are generally exempt from most private creditors under federal law. Pension income is often similarly protected under federal ERISA rules or state law. This means that even if you carry credit card debt, a private debt collector generally cannot garnish your Social Security income. However, if your SS or pension is deposited in a bank account mixed with other funds, the protections can become harder to enforce. Keep benefit income in a separate account and know your rights under the Electronic Fund Transfer Act's "two-month lookback" rule for direct-deposit government benefits. For a deeper look at which income is exempt, see our guide on debt help for retirees.

How do I enroll my grandchild in school without being their legal guardian?

Under the McKinney-Vento Homeless Assistance Act and most state education codes, children living with grandparents or other relatives outside their own home are entitled to immediate school enrollment regardless of whether you have legal custody, a birth certificate, or immunization records in hand. Schools must enroll the child immediately and gather missing documents afterward. Many states also allow grandparents to use a Caregiver Affidavit or "Grandparent/Relative Educational Authorization Affidavit" (similar to California's law) to make school and medical decisions without going to court. Ask the school district's enrollment office or the state education department about available affidavit options in your state.

Should I take out a personal loan or cash-advance to cover costs for my grandchildren?

No — this is the trap that turns a short-term cash gap into long-term debt. Before borrowing, exhaust every benefit the children may already qualify for (TANF child-only, Medicaid, SNAP, KinGAP if applicable, tax credits). Those programs can replace hundreds of dollars per month that you might otherwise be putting on a credit card. Payday and cash-advance loans in particular carry triple-digit APRs that compound quickly on a fixed income. If you already carry credit card or personal loan debt from caregiving costs, there are legitimate options — covered in the section below — that do not require taking on more debt.

What if I already have credit card debt from raising my grandchildren — what are my options?

Your own unsecured debt — credit cards and personal loans — is the only kind that routes to a debt relief program. Start with a nonprofit credit counselor through NFCC.org; they offer free consultations and can enroll qualifying accounts in a debt management plan that reduces interest rates without the credit-score impact of settlement. If the balance is genuinely too large to repay in full and you are experiencing financial hardship, debt settlement through a company like National Debt Relief applies only to unsecured accounts and comes with trade-offs: your credit score is typically affected during the program, forgiven debt over $600 may be taxable income (Form 1099-C), and creditors are not required to accept any offer — results are not guaranteed. Never use a settlement program for a mortgage, HELOC, auto loan, or any secured debt.

Financial Help for Grandparents Raising Grandchildren (2026 Guide)

You stepped up when no one else could — and now you are funding a second family on a fixed or limited income. This guide leads with every benefit and grant the children in your care may already qualify for (most grandparents don't know about these), then covers how to protect your own retirement income and, if you already carry credit card debt from caregiving costs, your honest options for addressing it.

Step 1 — Get the money you are already owed (most caregivers don't know)

The single most important financial move for grandparents and other kinship caregivers is not a debt program — it is making sure the children you are raising are enrolled in every benefit they already qualify for. These programs exist specifically for situations like yours, and they are dramatically underused. A grandparent who qualifies for child-only TANF, KinGAP, Medicaid for the children, and the Child Tax Credit can recover several hundred to over a thousand dollars per month that they are currently covering out of pocket — or, in too many cases, charging to a credit card.

Work through each category below before paying down any debt or taking on any loan. These benefits reduce the costs that created the debt in the first place.

Child-only TANF grants — paid on the child's income, not yours

This is the program most kinship caregivers don't know about. Child-only TANF is a cash assistance grant paid on behalf of the child living in your home. The eligibility determination is based on the child's income — which in most cases is $0 — and not the grandparent's or other caregiver's income. This means grandparents with Social Security, pension income, or moderate wages who would not otherwise qualify for assistance are routinely approved for child-only TANF grants.

Monthly payments vary by state, typically in the range of $100–$450 per child, though some states pay more. You do not need to be the legal guardian in most states to apply — you may qualify as a relative caregiver or "nonparent caretaker relative." To apply, contact your state's TANF office or department of social services and ask specifically for the child-only TANF for kinship caregivers option. Do not assume you were told about this when you first took the child in — agencies do not always raise it proactively.

The federal TANF program also has a five-year lifetime limit on benefits — but that limit applies to the adult caregiver, not the child-only portion. A child-only grant is not counted against any caregiver's lifetime limit.

Kinship guardianship assistance (KinGAP / GAP)

If the child you are raising was previously in the formal foster care system and you are willing to become their legal guardian (rather than adoptive parent), you may qualify for Kinship Guardianship Assistance, called KinGAP in many states or simply the Guardianship Assistance Program (GAP). Under this federally supported program (Title IV-E of the Social Security Act), the state continues to pay a monthly subsidy to you as the legal guardian, typically at or near the foster care board rate for the child's age and level of need.

Monthly payments under KinGAP/GAP commonly range from $500 to over $1,000 per child depending on the state and the child's needs — a meaningful amount for a grandparent on a fixed income. The program also continues the child's Medicaid eligibility, which matters enormously for children who have experienced trauma or have behavioral or developmental needs.

Key eligibility requirements include:

The child must have been under state child welfare supervision (in foster care) and placed with you as a relative for at least six consecutive months before you take guardianship.
You must not adopt — KinGAP is for guardianship, not adoption (a separate adoption assistance program exists for those who choose to adopt).
The agreement must be finalized before the child ages out of foster care (typically at 18, extended to 21 in many states).

Contact your state's child welfare or foster care agency directly to inquire whether a child in your care is "IV-E eligible" and what your state's specific KinGAP terms are. A kinship care specialist at GrandFamilies.org can also point you to state-specific guidance.

Kinship Navigator Program — your benefits GPS

The Kinship Navigator Program, authorized under the Family First Prevention Services Act and funded through Title IV-B, is designed precisely for grandparents and relative caregivers who are trying to navigate a confusing system of overlapping programs. A kinship navigator — usually a trained case manager or social worker employed by your state's child welfare agency or a contracted nonprofit — will:

Identify every benefit the children in your care may qualify for, including programs you may not have heard of.
Help you understand the difference between informal care and formal foster care or guardianship, and what that means for each benefit.
Connect you to local support groups for grandparents raising grandchildren.
Assist with benefit applications, legal aid referrals, respite care, and school enrollment issues.

Kinship Navigator Programs are available in all states (required as a condition of Title IV-E funding), though services and staffing vary. Find yours by calling 211 and asking for "kinship caregiver support" or "grandparent caregiver navigator," or by searching GrandFamilies.org's state-by-state resource directory.

SNAP, WIC, Medicaid/CHIP for the children

SNAP (food assistance)

Children living with grandparents or other relative caregivers can often be included in a SNAP household even when the caregiver's income is too high for the caregiver to qualify on their own. Many states allow the children to be counted in a separate household unit — meaning only the children's income (usually none) is used to determine their eligibility. At minimum, children should be added to an existing SNAP household for the additional benefit amount they generate. Apply through your state's SNAP agency or at benefits.gov.

WIC

If any of the children you are raising are under age 5 or you are breastfeeding an infant in your care, the WIC program (Women, Infants and Children) provides monthly food package benefits, formula for infants, and nutritional support. A relative caregiver acting as the child's primary caregiver can apply on the child's behalf. WIC income limits are generous — approximately 185% of the federal poverty level.

Medicaid and CHIP

Children are eligible for Medicaid and CHIP at higher income thresholds than adults — most states cover children with household incomes up to 200–300% of the federal poverty level, and some states go higher. Enrollment does not require legal custody in most states; a grandparent or relative caregiver can typically enroll a child with proof of the child's residence in the home and a statement of care responsibility. Apply through your state's Medicaid agency or at healthcare.gov. Once enrolled, Medicaid and CHIP cover well-child visits, mental health services, prescriptions, and dental care — costs that many grandparents have been absorbing out of pocket or on credit cards.

Child Tax Credit, dependent exemptions, and Earned Income Credit

If you are providing more than half of a grandchild's financial support and they lived with you for more than half the year, you may be entitled to significant federal tax benefits:

Child Tax Credit (CTC): Up to $2,000 per qualifying child under age 17 for tax year 2025, with a refundable portion (Additional Child Tax Credit) of up to $1,700 per child if your tax liability is lower than the credit. The credit phases out above $200,000 ($400,000 married filing jointly).
Earned Income Tax Credit (EITC): If you have earned income (wages, self-employment), claiming a qualifying child dramatically increases the EITC — up to several thousand dollars depending on income and number of children. Grandparents who work part-time often leave this credit unclaimed.
Child and Dependent Care Credit: If you pay for daycare, after-school programs, or summer camp so you can work, you may claim a credit on those expenses for children under age 13 in your care.
Head of Household filing status: If you are unmarried and the grandchild is your qualifying dependent, you likely qualify for the lower Head of Household tax rate and higher standard deduction ($21,900 for 2025).

Tax rules for relative caregivers have tie-breaker provisions — if a parent also files a return claiming the child, the IRS has specific rules for who prevails. A free tax preparer through the IRS VITA program (Volunteer Income Tax Assistance) can sort through your specific situation at no cost; VITA sites serve households earning under $67,000/year and are operated at community centers and libraries nationwide.

School enrollment and McKinney-Vento rights

A common practical problem: the child arrives without school records, immunizations, or a custody document — and a school administrator tells you the child cannot enroll until you have a court order. This is incorrect in most circumstances. Under the federal McKinney-Vento Homeless Assistance Act, children in "doubled-up" living situations (living with a grandparent or other non-parent caregiver due to loss of housing, economic hardship, or other similar reasons) have the right to immediate school enrollment regardless of whether documentation is available. Schools must enroll the child immediately and pursue missing records afterward.

Additionally, many states have enacted Relative Caregiver Education Authorization Affidavits (similar to California's AB 1702 law). These documents allow a grandparent or other relative caregiver to authorize school enrollment, give consent for medical care, and make emergency decisions without obtaining formal legal custody. Ask the school district's enrollment or McKinney-Vento liaison about your state's specific options, or contact GrandFamilies.org for state-by-state guidance.

Informal care vs. legal custody/guardianship — why it matters for benefits

Many kinship caregivers are raising a grandchild informally — the child simply moved in without any court proceeding. This is sometimes called "voluntary kinship care" or "informal kinship care," and it is far more common than formal foster placement. You can care for a child informally and still access many benefits — including child-only TANF, SNAP, CHIP, and the child tax credits.

However, legal custody or guardianship unlocks additional programs and protections that informal care does not:

KinGAP/Guardianship Assistance: Requires the child to have been in formal foster care placement and requires legal guardianship.
Medicaid/CHIP — some states: Legal guardians may have access to additional waiver programs for children with special needs.
Medical consent: Without legal custody, you may face challenges authorizing non-emergency medical procedures, mental health treatment, or surgery. Many states' caregiver affidavits cover routine medical decisions but not major surgery.
School enrollment: Affidavits cover most enrollment needs; legal guardianship provides more comprehensive authority.
Protecting the placement: If a parent seeks to reclaim the child, legal guardianship (or custody) provides formal standing in court. Informal care does not.

You do not need to formalize the arrangement to access benefits — but understanding the difference helps you make an informed decision based on your situation. A free consultation with a legal aid attorney who handles family law can walk you through the options without cost. Find legal aid in your area at lawhelp.org.

Protecting your own finances — do not drain your retirement

Grandparents and kinship caregivers on fixed or limited incomes face a specific financial trap: the impulse to cover every gap by pulling from retirement savings, taking out home equity loans, or paying on credit cards with the intention of "sorting it out later." This section is a direct warning about each of those paths.

Do not cash out retirement accounts to cover caregiving costs

Early distributions from a 401(k) or traditional IRA before age 59½ typically trigger a 10% penalty plus ordinary income tax on the full amount withdrawn. A $20,000 distribution can net as little as $13,000–$14,000 after taxes and penalties — and the retirement account never recovers those lost compounding years. Even after age 59½, pulling retirement funds unnecessarily can affect your Medicare premium calculations (Income-Related Monthly Adjustment Amount / IRMAA) and your Social Security tax exposure.

Before withdrawing retirement funds, exhaust the benefits in the sections above. Many grandparents discover that TANF child-only grants, Medicaid for the children, SNAP, and the Child Tax Credit together add up to more per month than they expected — enough to cover the caregiving costs without touching retirement savings.

Social Security and pension income is generally protected from private creditors

If you are already on Social Security retirement or disability (SSDI) benefits, private creditors — credit card companies, personal loan lenders, medical billing collectors — cannot garnish Social Security income under federal law. Federal pension income under ERISA is similarly protected in most cases. State pension protection varies but is often substantial.

This means: if you already carry credit card debt from caregiving costs, you have more protection than you may realize. A debt collector calling to demand payment cannot take your monthly Social Security deposit. What they can do is get a judgment and levy a bank account — which is why keeping your Social Security payments in a dedicated account (rather than mixed with other funds) matters. Our separate guide on debt help for retirees on fixed income covers this in depth, including the two-month lookback rule for direct-deposit government benefits.

Avoid high-interest borrowing to cover care costs

Payday loans, cash advances, and personal installment loans marketed to seniors carry interest rates that compound quickly on a fixed income. A $3,000 payday cycle at 400% APR can reach $6,000 in a year without reducing principal. If you face an immediate cash gap, first call 211 to ask about emergency assistance programs in your area (utility help, food banks, emergency rent/utility funds) — most communities have short-term bridge resources specifically for kinship caregivers. These are free and do not create debt.

Handling credit card debt you already carry

If you have already accumulated credit card or personal loan debt covering clothing, food, school supplies, medical copays, or other child-raising costs, you have real options — but only for unsecured accounts in your name.

Call creditors' hardship lines before missing payments

Most major credit card issuers have financial hardship programs that are not widely advertised. Call the number on the back of your card and ask for "financial hardship assistance." Many creditors will temporarily reduce your interest rate, suspend minimum payments for 1–3 months, or waive late fees if you explain the situation proactively before going past due. This costs nothing and buys time while you apply for the benefits above.

Nonprofit credit counseling and debt management plans

A nonprofit credit counselor — find one at NFCC.org (National Foundation for Credit Counseling) — can enroll your qualifying unsecured accounts into a Debt Management Plan (DMP). Under a DMP, creditors typically agree to reduce interest rates (often to 6–10%) and waive penalty fees; you make one consolidated payment to the nonprofit agency each month over three to five years. A DMP repays the full principal, does not reduce what you owe, but meaningfully lowers the total interest cost. It has a modest effect on your credit (new credit is generally restricted while enrolled) but avoids the more serious credit damage of settlement. NFCC consultations are typically free or low-cost.

Debt settlement for genuinely unmanageable balances

If you carry a large unsecured balance — credit cards and personal loans you cannot realistically repay in full, even over several years — debt settlement is one avenue to consider. A settlement program negotiates with creditors to accept less than the full balance owed. It applies only to unsecured debt (credit cards, personal loans, some medical accounts) — not mortgages, home equity loans, auto loans, or any secured account. Do not enroll secured debt in a settlement program.

The trade-offs are real and must be understood before enrolling:

Credit score: Settlement programs typically require stopping payments to creditors while you build a settlement fund. Missed payments damage your credit. Settled accounts are typically reported as "settled for less than the full amount," which also affects your score.
Taxable forgiven debt: If a creditor forgives $600 or more of principal, they are generally required to issue a Form 1099-C, and the IRS treats the forgiven amount as taxable income unless you qualify for an insolvency exclusion (IRS Form 982). Consult a tax professional.
Not guaranteed: Creditors are not required to accept any settlement offer. Results vary by creditor, account age, and your financial profile. No honest provider can promise specific savings amounts or guaranteed outcomes.

The typical eligibility bar for a settlement program is $7,500 or more in qualifying unsecured debt and a genuine financial hardship. If settlement may be appropriate for your situation, a free estimate from National Debt Relief does not affect your credit and carries no obligation. Compare it against a DMP (full repayment, lower credit damage) based on your actual balance and income.

This page addresses your own debt — credit cards and personal loans in your name from covering caregiving costs. It is distinct from the question of whether you owe the parent's debts, covered in our filial-responsibility guide.

Free help — Area Agency on Aging, 211, GrandFamilies.org, Generations United

GrandFamilies.org — grandfamilies.org — the primary national clearinghouse for kinship caregiver policy, benefits, state-by-state legal information, and local support resources. Run by Generations United. Free and comprehensive.
Generations United — gu.org — national advocacy organization for grandfamilies. Publishes the annual State of Grandfamilies report and maintains state-level resource directories.
211 — Call or text 211 from anywhere in the US and ask for "kinship caregiver assistance." Operators can connect you to local Kinship Navigator Programs, emergency financial assistance, respite care, food banks, and utility assistance in your area — all at no cost to you.
Area Agency on Aging — Many Area Agencies on Aging (AAA) serve grandparent caregivers, not just elders receiving care. Your local AAA may offer caregiver support groups, benefits navigation, legal aid referrals, and respite care services. Find yours at eldercare.acl.gov (1-800-677-1116).
IRS VITA — irs.gov/vita — free tax preparation for households earning under $67,000/year. VITA volunteers are trained on kinship caregiver tax situations including the Child Tax Credit, EITC, and Head of Household filing status for grandparents raising grandchildren.
Legal Aid (lawhelp.org) — lawhelp.org — income-qualified free legal assistance for guardianship petitions, custody proceedings, school enrollment disputes, benefit denials, and questions about caregiver affidavits in your state.
NFCC.org — nfcc.org — National Foundation for Credit Counseling; find a nonprofit credit counselor for a debt management plan consultation, typically free or low-cost.
Benefits.gov and NCOA BenefitsCheckUp — benefits.gov and ncoa.org/benefitscheckup — online screeners that identify federal, state, and local programs you and the children in your care may qualify for, in about 15 minutes.

You are not alone in this. Millions of grandparents and relative caregivers are navigating the same system with the same confusion about what is available. The programs above exist for your situation — the goal of this guide is to make sure you know about them before spending money you do not need to spend.