Tennessee Subsidized Permanent Guardianship Payments

What SPG Is — and Who It's For

Subsidized Permanent Guardianship (SPG) is Tennessee's version of the federal Title IV-E Guardianship Assistance Program, governed by DCS Policy 15.15. It provides ongoing monthly payments and Medicaid to relatives (or fictive kin) who take permanent guardianship of a child leaving DCS foster care.

The critical qualifier: SPG is only available when the child was in formal DCS state custody first. A grandparent who takes in a grandchild informally, obtains a Power of Attorney, or even wins a court custody order cannot access SPG unless the child was placed in their home through the foster care system.

The Eligibility Path

SPG eligibility follows a strict administrative sequence:

1. The child enters state custody through a Juvenile Court Protective Custody Order after a dependent and neglected adjudication.
2. The child is placed in the relative's home as a licensed foster placement. The home must maintain full foster home approval for at least six consecutive months. Emergency, expedited, or unapproved placements don't count toward this requirement.
3. Reunification and adoption are ruled out. A Child and Family Team Meeting must formally document that both permanency goals were explored and found inappropriate.
4. Children 12 and older must be consulted about the guardianship arrangement.

Eligible guardians include relatives by blood, marriage, or adoption, as well as fictive kin who had a significant pre-existing relationship with the child before DCS custody — godparents, teachers, or neighbors who were already part of the child's life.

The Agreement Timing Trap

This is the single most consequential procedural rule in the entire SPG process: the Subsidized Permanent Guardianship Agreement (Form CS-0721 for state-funded cases, Form CS-4238 for Title IV-E cases) must be fully signed by both the prospective guardian and the DCS representative before the court enters the final guardianship order.

If the court finalizes the guardianship before the agreement is executed, SPG cash payments are permanently barred. There is no retroactive fix. The timing rule does not itself guarantee Medicaid coverage; apply for TennCare based on the child's separate eligibility.

This isn't a theoretical risk. It happens when court dates move faster than DCS paperwork, when the guardian's attorney files before confirming the agreement is complete, or when the regional DCS office and the Central Office Subsidy Unit aren't aligned on timing.

How Much SPG Pays

Monthly payments are negotiated up to the child's foster care maintenance rate, matching the standard foster care board rate based on the child's age and any specialized level-of-care needs. The guardian's own income is excluded from SPG payment calculations.

Non-recurring guardianship expenses — court filing fees, attorney fees, and related finalization costs — are reimbursable up to $2,000 per child.

All children on SPG automatically qualify for TennCare Medicaid.

Extended Benefits to Age 21

Under Public Chapter 387 / SB 1266 (effective July 1, 2025), youth who exit DCS foster care to SPG at age 16 or older can receive extended subsidy payments until age 21. To maintain extended payments, the young adult must meet at least one of five conditions:

• Completing high school or an equivalent credential
• Enrolled in post-secondary or vocational education
• Participating in a program to remove barriers to employment
• Employed at least 80 hours per month
• Incapable of education or employment due to a documented medical, physical, or intellectual disability, verified by clinical documentation and approved by DCS

These youth are also eligible for Bright Futures post-permanency supports (up to age 23), driver's license fee waivers, and Education and Training Vouchers worth up to $5,000 per year for higher education.

GSAP: Post-Permanency Support

After the guardianship is finalized, the Guardianship Support and Preservation Program (GSAP) provides ongoing help. Operated statewide by Harmony Family Center, GSAP offers family preservation services, clinical counseling, and crisis navigation. Reach them at 1-888-848-2727 or through tnasap.org.

GSAP is available only to families with a finalized guardianship of a child who was previously in DCS state custody — the same population that qualifies for SPG.

Designating a Successor Guardian

The SPG agreement allows guardians to designate a Successor Guardian. If the primary guardian dies or becomes incapacitated, the successor assumes care and the subsidy continues without a new technical eligibility determination.

The Tennessee Kinship Financial Help Guide covers the full spectrum of financial help available to kinship caregivers — from programs available with no court involvement through the RCP stipend to SPG. It includes a legal-arrangement matrix so you can see exactly which programs each custody status unlocks, and a document checklist tailored to each application.

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