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Effective: 9/2/2026

G3.9 IV-E Maintenance Payments and Expenditures

Legal Authority

Introduction

​​​​​​​​​​​​​Title IV-E of the Social Security Act allows for reimbursement to be made for the care of children who meet the eligibility standards outlined in SOP G3.2 Title IV-E Eligibility and ReimbursabilityWhile some children are eligible for reimbursement of foster care maintenance, others are eligible only for reimbursement of administrative expenditures. 


Practice Guidance


  • Foster care maintenance reimbursements include:
    • Food;
    • Clothing;
    • Shelter;
    • Daily supervision;
    • School supplies;
    • A child’s personal incidentals;
    • Liability insurance for the child;
    • Reasonable travel to the child’s home for visitation; and
    • Reasonable travel for the child to remain in the school in which the child is enrolled at the time of placement. 
  • Administrative expenditure (personnel time and agency resources) reimbursements include: 
    • Referral to services;
    • Preparation for and participation in judicial determinations;
    • Placement of the child;
    • Development of the case plan;
    • Case reviews;
    • Case management and supervision;
    • Recruitment and licensing of foster homes and institutions;
    • Rate setting;
    • A proportionate share of related agency overhead; and
    • Costs related to data collection.​
  • Foster care maintenance payments made on behalf of a child placed in a foster home or child care institution (CCI), who is the parent of a son or daughter in the same home or institution, must include amounts that are necessary to cover costs incurred on behalf of the child’s son or daughter. These costs must be limited to funds used for items described in the above definition of foster care maintenance payments.
  • Agencies may also claim administrative costs during the twelve (12) month period in which a child is placed with a parent in a licensed residential family-based treatment facility for substance abuse consistent with 45 CFR 1356.60(c) for the administration of the Title IV-E program, which includes such things as case management. A licensed residential family-based treatment facility for substance abuse is not a CCI as defined in section 472(c) of the Act. While the facility must be licensed, there is no requirement that it meet the Title IV-E licensing and background check requirements for a CCI.  
  • The agency does not claim administrative costs on unapproved or unlicensed placements. When a child moves from an approved or licensed placement to an unallowable placement, the eligible child’s status is changed to non-reimbursable.
  • If a child is in an approved/licensed home for one day during a calendar month, the agency may claim the entire calendar month.


Procedure

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The children's benefits worker (CBW):
  1. Authorizes foster care maintenance payments, as defined in this section, to be made on behalf of an eligible child when the child is: 
    1. In the approved foster home of an individual, whether the payments are made to the individual or a public or private child placement (PCP)or private child caring (PCC) agency;
    2. In a licensed child care institution, whether the payments are made to the institution or a public or private child placement or child-caring agency;
    3. The child of a minor parent in foster care; or 
    4. Placed with a parent in a licensed residential family-based treatment facility for substance abuse for up to twelve (12) months in accordance with requirements in sections 472(j) and 472(a)(2)(C) of the Social Security Act. 


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Documents

Revisions