South Dakota Financial Help for Grandparents Raising Grandchildren

The Money Your Grandchild May Already Be Entitled To

When a grandchild moves in unexpectedly, the first financial hit is immediate — food, clothes, a bed, school supplies. Many South Dakota grandparents and relatives assume their own Social Security or pension income disqualifies the child from state benefits. That assumption is wrong for most programs.

South Dakota runs several assistance programs where only the child's income matters, not yours. A retired grandparent collecting Social Security can apply for a child-only TANF grant, Medicaid, SNAP, and child care subsidies without reporting personal retirement income on most of those applications.

Here is every major program available to relative caregivers in South Dakota, with the agency that runs it and whether your income counts.

TANF Child-Only Cash Grant

The Department of Social Services (DSS) Division of Economic Assistance administers TANF in South Dakota. When a grandparent, aunt, uncle, or adult sibling applies as a non-needy caretaker relative, DSS evaluates only the child's income and assets. Your wages, Social Security, pension, savings, and property are completely excluded.

Monthly payment standards for child-only cases: $414 for one child, $486 for two, $557 for three. The child must be under 18 (or under 19 if a full-time high school student), meet applicable citizenship and immigration rules, and live in your South Dakota home.

There are no work requirements and no 60-month time limit for child-only grants.

SNAP (Food Stamps)

SNAP works differently from TANF — it counts the income of everyone in the household who buys and prepares food together. But SNAP also allows standard deductions for dependent care, shelter costs, and medical expenses for elderly or disabled members that can bring net income well below the cutoff.

For a household of three, the FY 2027 gross monthly income limit is $2,960 (130% of the federal poverty level). The maximum monthly allotment for a family of four is $1,023.

Apply online at eaportal.sd.gov or through your local DSS office.

Medicaid and CHIP

Children under 19 may qualify for Medicaid or the Children's Health Insurance Program (CHIP) under MAGI rules. Which household members' income counts depends on the child's applicable tax-filer or non-filer household.

Coverage includes pediatric medical, dental, vision, mental health services, prescriptions, and Early and Periodic Screening (EPSDT). There is no premium for children's Medicaid in South Dakota.

Grandparents themselves may qualify for adult Medicaid Expansion if their income is below 138% of the federal poverty level ($1,835/month for an individual). Starting January 1, 2027, adult expansion enrollees will face work requirements, though caregivers of children under 14 are exempt.

Child Care Assistance Program (CCAP)

CCAP helps working or studying caregivers cover childcare costs. Eligibility is generally capped at 209% of the federal poverty level, but DSS excludes a qualifying relative caretaker's income and assets when determining eligibility for the child.

Households at or below 170% FPL pay zero copayment. Relative providers must be at least 18 and may include grandparents, great-grandparents, aunts, uncles, and non-resident siblings. They may receive payment after meeting DSS's provider requirements.

Guardianship Assistance Program (GAP)

For a Title IV-E guardianship subsidy, the child must have been eligible for foster care maintenance payments while living with you for at least six consecutive months before the guardianship. The payment cannot exceed the foster care rate the child would have received. South Dakota also funds state-only guardianship subsidies; ask CPS about those eligibility and payment terms. A child with a Title IV-E agreement is eligible for Medicaid; ask CPS whether a state-funded subsidy qualifies the child for Medicaid.

GAP is only available for children who went through the foster care system first. Relatives with private guardianship arrangements are not eligible for this subsidy — they should apply for child-only TANF instead.

Where to Start

Pick the program that addresses your most urgent need and apply there first. TANF child-only excludes the relative caregiver's income, while Medicaid follows the child's applicable MAGI household rules. Filing dates and benefit start dates vary by program.

The South Dakota Financial Help Guide walks through every program's application step by step, with document checklists and a caseworker contact log so nothing falls through the cracks.

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