Vermont Kinship Foster Care vs. Guardianship Financial Help

The money available to you as a kinship caregiver in Vermont depends heavily on your legal relationship to the child. A licensed kinship foster parent, a court-appointed guardian, and an informal caregiver all qualify for different programs at different rates. Understanding the distinction before you choose a legal path saves months of navigating the wrong agency.

The Three Main Financial Tracks

Vermont kinship families fall into one of three broad financial tracks based on how the child came into their care.

Track 1: Licensed Kinship Foster Care

If DCF's Family Services Division removes a child from the parents and places them with you as a licensed kinship foster parent, the child remains in DCF legal custody. You receive:

• Monthly foster care maintenance payments — DCF determines reimbursement amounts annually; payments cover food, clothing, incidentals, shelter, supervision, and the child's personal spending, and are generally excluded from taxable income
• Health coverage — children in DCF custody are covered through a parent’s insurance or Medicaid
• Caregiver income — DCF does not use it to calculate the maintenance payment, but foster home licensing requires enough income to support the household without relying on foster care reimbursement

The trade-off: DCF retains legal custody of the child. You operate under DCF supervision, home licensing requirements, and regular caseworker visits. Placement can end if DCF changes the permanency plan.

Track 2: Permanent Guardianship (DCF Path)

If reunification and adoption are ruled out, DCF may offer you permanent guardianship through the Family Division of the Superior Court under 14 V.S.A. § 2664. Before the court issues the final order, you and DCF execute a Guardianship Assistance Program (GAP) Agreement, which may be Title IV-E-funded or state-funded depending on the child's eligibility. This provides:

• Monthly GAP stipend — negotiated individually, up to the maximum foster care rate the child would have received
• Medicaid coverage — Vermont Medicaid may be included in the agreement; a child eligible for Title IV-E assistance may receive Medicaid in any state, and an out-of-state guardian may need to apply on the child's behalf
• Nonrecurring expense reimbursement — up to $2,000 for legal and administrative costs of finalizing guardianship
• Possible post-18 assistance — if the young adult has not graduated from high school, assistance may continue until graduation or leaving school; if DCF determines a lifelong mental or physical disability limits daily activities, assistance may continue up to age 21 while the guardian continues financial support

The critical requirement: the child must have been in your licensed kinship foster home for at least six consecutive months before the guardianship order. The GAP agreement must be fully executed before the court issues the final order — signing afterward disqualifies the subsidy.

Track 3: Private Guardianship or Informal Care

If you petition the Probate Division of the Superior Court for a custodial minor guardianship under 14 V.S.A. § 2623, or if you are caring for the child informally without any court order, you access a different set of programs:

• Reach Up Child Only — monthly cash assistance based on the child's income. DCF's 2026 report lists maximum grants from $562 to $976 for one-to-four-member households outside Chittenden County.
• 3SquaresVT — food benefits subject to federal household composition rules
• Dr. Dynasaur — full health coverage
• CCFAP childcare subsidy — legal guardians receiving Reach Up Child Only get income guidelines waived

Private probate guardians and informal caregivers both qualify for Reach Up Child Only. The difference is that guardians get legal decision-making authority over school and medical matters, plus the CCFAP income waiver.

Conditional Custody Orders

A conditional custody order is a middle ground. The Family Division transfers temporary legal custody to you under DCF protective supervision (33 V.S.A. § 5308). You get Reach Up Child Only, Dr. Dynasaur, 3SquaresVT, and CCFAP — but you do not qualify for Title IV-E GAP because the child is not moving into permanent guardianship through DCF.

Which Path Pays More Is Not the Only Question

Foster care maintenance payments are generally higher than Reach Up Child Only cash grants. But foster care comes with DCF oversight, licensing requirements, and the reality that the child is legally in state custody, not yours. Permanent guardianship through DCF offers comparable financial support with more family autonomy, but it requires the specific sequence of foster placement, then GAP agreement, then court order.

For many kinship families — especially those who took the child in voluntarily — the private guardianship or informal care track is the only realistic option. And Reach Up Child Only combined with 3SquaresVT, Dr. Dynasaur, and fuel assistance provides meaningful support without DCF involvement.

Our Vermont Kinship Financial Help Guide includes a care arrangement comparison matrix showing exactly which programs each legal status unlocks, with the application forms and document requirements for each path.

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