Wisconsin Subsidized Guardianship for Kinship Caregivers

What Subsidized Guardianship Is

Subsidized Guardianship under Wis. Stat. § 48.623 is a permanency option for children who have been in foster care with a relative and cannot safely return to their parents. It gives you legal guardianship of the child, ends the active child welfare case, and provides a monthly payment plus automatic Medicaid — potentially for years.

It is not available to every kinship caregiver. The pathway requires a specific sequence through the child welfare system, and the agreement must be signed before the court enters the guardianship order.

The Pathway Step by Step

1. Child welfare placement. A child is placed in your home under a formal court order — typically a CHIPS (Child in Need of Protection or Services) case.

2. Foster care license. You become licensed as a Level 1 (or higher) foster parent. This is mandatory for the subsidized guardianship pathway.

3. Six consecutive months. The child lives in your licensed foster home for at least 6 consecutive months.

4. Permanency determination. The child welfare agency and the juvenile court determine that reunification with the biological parents and adoption are both not appropriate permanency goals.

5. Written agreement. You, the agency, and DCF execute a formal Subsidized Guardianship Agreement. This must be fully signed before the court enters the guardianship order. There is no retroactive qualification — miss this step and the subsidy is lost.

6. Court order. The court enters a guardianship order under Wis. Stat. § 48.977 or tribal law and dismisses the underlying CHIPS case.

How Much You Receive

The monthly subsidy is individually negotiated between you and the agency. The payment cannot exceed the foster care maintenance payment you were receiving (or would have been eligible to receive) as a licensed foster parent. In practice, this means the subsidy can be significantly higher than the $384/month Kinship Care rate — it depends on the child's assessed level of care and your prior foster payment.

You can also receive up to $2,000 per child in reimbursement for nonrecurring legal, court, and administrative expenses related to establishing the guardianship.

Subsidized Guardianship vs. Kinship Care

Kinship Care is the starting point for most relatives — it requires less bureaucratic infrastructure and no foster license for voluntary placements. Subsidized Guardianship is an option for relatives who entered through the child welfare system and want permanent legal authority with a negotiated payment that may be higher.

Medicaid and Portability

Children under an active Subsidized Guardianship Agreement receive automatic categorical eligibility for BadgerCare Plus / Medicaid with no income test. If you move to another state, the monthly payment and Medicaid benefits follow under the Interstate Compact on Adoption and Medical Assistance (ICAMA).

Payments normally end when the child turns 18. They can be extended to age 21 if the youth was enrolled in the agreement after reaching age 16 and is still in high school, a vocational program, or pursuing an IEP.

Siblings

If you enter Subsidized Guardianship for one child and later take in a non-subject sibling, that sibling may qualify for subsidized guardianship payments under streamlined rules — ask your agency about the sibling provision.

For a full comparison of Subsidized Guardianship, Kinship Care, and every other financial program for relatives raising children in Wisconsin, the Wisconsin Kinship Financial Help Guide covers it all.

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