Foster Care Payments
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This section includes information about foster care payments for children and young adults.
Policy
Federal, state, or local funding provides for foster care payments. Licensed and unlicensed custodial caretakers receive foster care payments for a foster child up to the child’s 18th birthday.
For NA, when the caretaker chooses to include a foster care child or adult in the NA budgetary unit, the foster care payments are countable income.
NOTE When a foster care participant is 18 years old, the participant may voluntarily remain in foster care by enrolling in the Voluntary Foster Care for Young Adults Program. Allowances received from the Young Adult Program are countable income.
For CA, when the foster care payment covers a foster child’s basic needs(g), the foster care child is a CA nonparticipant, and the foster care payments do not count.
For more information about foster care, see all of the following:
●Determining Budgetary Units for more information about NA and CA nonparticipants.
●Adult Only CA Case for more information about the CA eligibility only for adults.
●Foster Caregiver for more information about caregivers licensed by the state to care for children.
●Relative Placement for more information about relative unlicensed caregivers.
The foster care adults between 17 and 21 years old may receive an Independent Living Subsidy. The foster care payment is intended to assist the youth through the transition into adulthood and is countable income.
Countable income is used to determine an income budget. (See Income Budgeting to see how FAA determines the income budget.) FAA needs to know about income that is both countable and not countable to determine whether a budgetary unit’s income is exceeding their expenses. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
Procedures
Foster Care payments are made to licensed and unlicensed custodial caretakers of a foster care child up to the child's 18th birthday. Whether to count or not count foster care payments depends on one of the following:
●For NA, when the caretaker chooses to include the foster care participant in the NA budgetary unit. The foster care payment is countable when the foster care participant is included.
●For CA, foster care participants are not eligible when the foster care payment covers the foster care child's basic needs(g).
See Budgeting Foster Care and Adoption or Guardian Subsidies to determine the budget amount.
When the participant is present, have them sign the Authority to Release (FAA‑1765A) form to contact any companies or businesses involved. The FAA-1765A can be faxed or emailed to the participant's employer when it is not possible to use the Application for Benefits (FAA-0001A) or the HEAplus Authority to Release signed statement.
Verification
System interface and the case file(g) must be reviewed before verification is requested. No additional verification is needed when AZTECS interface or HEAplus hubs have verified the information.
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
●Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
●Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
Examples of verification that can be used for foster care payments include, and are not limited to, any of the following:
●Assistance payments records
●Agency or payer providing the income
●Court records or court orders
●DCSS documents or printouts
●Current check reflecting gross income
●Federal or state tax forms
●Participant Statement verification when one of the following occur:
Obtaining documented or collateral contact verification may cause harm or undue hardship(g) for the participant.
When all of the following occur:
●Other attempts to obtain the verification have failed. This includes documented and collateral contact verification.
●The participant has requested assistance from FAA.
●The worker has evaluated the request for assistance and cannot obtain the verification from another acceptable source.
●The participant statement is not questionable(g).
When unable to obtain proof from the sources listed above in unearned income verification to verify receipt of State of Arizona Department of Child Safety (DCS) Foster Care payments, send a request via email. See the current email address for DCS Verification Contact information.
NOTE For CA, verify whether the foster care payments meet the child’s basic needs and whether the foster caretaker is a licensed or unlicensed custodial caretaker.
AZTECS Keying Procedures
Key the FC Unearned Income Code in the INC TYPE field on UNIC next to the foster child or adult for whom the payment is intended.
Document the case file(g) thoroughly to support keyed codes, amounts, and frequencies. See the AZTECS Data Entry Guide for instructions on keying the AZTECS income screens.
NOTE Documentation must support determinations of eligibility and benefit level. Document in sufficient detail to ensure that any reviewer can assess whether the determination is reasonable and accurate. Include specific information regarding the reason the income is determined to be normal. (See Budgeting Income Documentation Requirements for additional information.)
Legal Authorities
7 CFR 273.1(b)(3)
last revised 10/02/2023