Table of Contents
- Understanding Foster Care Reimbursement vs. Pay
- California’s Level of Care (LOC) System (+ Current 2025 Rates)
- What Foster Care Reimbursement Covers
- What Foster Care Reimbursement Does Not Cover
Becoming a foster parent is a meaningful and life-changing decision, but many prospective foster parents have questions about the financial side of fostering. One of the most common misconceptions is that foster parents are “paid” to care for a child. In reality, foster parents receive reimbursement to cover the cost of providing a stable and nurturing home for a child.
Foster care reimbursement, unlike a paycheck, is not considered income because it is meant to cover the expenses associated with raising a child rather than serving as payment for a service. This is why the IRS classifies foster care reimbursement as non-taxable income.
In California, the reimbursement amount foster parents receive is determined by the child’s Level of Care (LOC). The LOC system evaluates the child’s specific needs, including behavioral, emotional, and medical factors, and assigns a reimbursement rate based on the level of supervision and care the foster parent must provide.
How much are foster parents paid? Who determines how much they get paid? How much do foster parents get paid per child? This article will address key questions related to the financial compensation of foster parents. We’ll explain how foster care reimbursement works in California, how the Level of Care system determines payment rates, and how Knotts Family Agency supports foster parents with financial guidance and ongoing resources.
Learn More About Fostering in California
Understanding Foster Care Reimbursement vs. Pay
The term “pay” can be misleading regarding foster care. Foster parents are not employees of the state or foster care agencies — they are volunteers who open their homes to provide care and stability for a child in need.
Reimbursement is designed to cover the child’s essential needs so that foster parents are not financially burdened. The funds are intended to help with:
- Food and clothing
- Housing and utilities
- Transportation
- Educational expenses
- Medical and dental care (through Medi-Cal)
Since reimbursement is not considered income, foster parents do not need to report it to the IRS or pay taxes on it. However, because the funds are for the child’s care, foster parents are expected to use them responsibly to meet the child’s needs.
Years ago, foster parent payment was based on the child’s age. There were several age groups. For example, a foster parent who cared for an infant would receive less than a foster parent who cared for a 16-year old.
You could argue that the old system had a flaw. Does a pediatrician doctor or nurse charge less when the patient is a 5-year-old versus a 16-year-old? What about an infant with significant health needs versus a teen with no behavioral or health concerns? Which parent should get more?
Then, a few years ago, the State of California changed foster care as we knew it. The Resource Family Approval (RFA) is a new family-friendly and child-centered caregiver approval process that combines elements of foster parent licensing, relative approval, and approvals for adoption and guardianship.
That is why foster parents are now known as Resource Parents or Resource Families. But it was not only a change in name, it also changed how foster parents were compensated. It would no longer be based on age, instead, it is now based onthe needs of the child. This is known as Level of Care (LOC).
Level of Care (LOC) Foster Care Rates in California
In California, foster care reimbursement rates are determined by the Level of Care (LOC) model. This model bases reimbursement on the child’s specific needs and required level of care rather than the child’s age.
This approach ensures that children with higher needs — such as behavioral or medical challenges — receive the appropriate level of support and that foster parents are compensated for the additional care and supervision required. In California, intensive service foster care (ISFC) rates are the highest due to the additional training and services required to care for children with unique needs.
Current Foster Care Reimbursement Rates in California (2025):
| Level of Care | Resource Family Base Rate |
| Level 1 (Basic) Foster Care Rate | $1,258 per month |
| Level 2 Foster Care Rate | $1,399 per month |
| Level 3 Foster Care Rate | $1,543 per month |
| Level 4 Foster Care Rate | $1,683 per month |
| Intensive Services Foster Care (ISFC) | $3,284 per month |
Keep in mind that the above official rates set by the California Department of Social Services are minimum rates. Certain foster care agencies offer higher rates of reimbursement. For example, Knotts Family Agency offers reimbursements ranging from $1,258 to $6,000 per month, depending on the child’s needs and the level of care provided.
How Level of Care (LOC) is Determined
The Level of Care (LOC) is determined through a comprehensive assessment that evaluates the child’s needs and the level of involvement required from the foster parent. This assessment is based on five key domains that reflect the child’s physical, emotional, medical, educational, and social needs.
The higher the child’s needs in any of these areas, the higher the level of care — and the corresponding reimbursement rate. Here’s how each domain is evaluated, with sample questions that may be used during the assessment process:
1. Physical Domain
The physical domain evaluates the child’s ability to meet their own basic needs and how much assistance the foster parent will need to provide. This includes daily activities such as eating, dressing, hygiene, and social functioning.
Foster parents may need to teach life skills like using utensils, tying shoes, or maintaining personal hygiene — especially if the child has developmental delays or special needs.
Sample Questions:
- Does the child need help with dressing, bathing, or grooming?
- Can the child prepare meals or snacks independently?
- Does the child engage in age-appropriate social activities?
- How much supervision is needed during daily activities?
2. Behavioral/Emotional Domain
This domain evaluates the child’s emotional health and behavioral patterns. Foster parents may need to help the child regulate emotions, build trust, and engage in positive social interactions.
Foster parents are often required to provide emotional support and encourage the child to participate in therapy or social activities.
Sample Questions:
- Does the child experience frequent mood swings or emotional outbursts?
- Does the child have difficulty forming relationships or trusting adults?
- How often does the child need emotional reassurance or redirection?
- Has the child experienced trauma or attachment issues?
3. Educational Domain
The educational domain assesses the child’s academic needs and the level of involvement required from the foster parent. This includes attending school meetings, helping with homework, and ensuring that the child receives necessary educational services.
Foster parents may also need to advocate for an Individualized Education Plan (IEP) or additional learning support.
Sample Questions:
- Does the child require special education services or an IEP?
- How often does the foster parent need to meet with teachers or school staff?
- Has the child experienced behavioral challenges at school (e.g., suspensions, difficulties concentrating)?
- Does the child need extra help with homework or academic assignments?
4. Health Domain
The health domain covers the child’s medical, dental, and psychological needs. Foster parents may need to coordinate doctor’s appointments, manage medications, and address specific dietary or nutritional needs.
Some children may also require therapy, psychiatric care, or specialized medical treatment.
Sample Questions:
- Does the child have any ongoing medical conditions or health concerns?
- Is the child on any medication that requires monitoring?
- Does the child require regular therapy or counseling?
- Are there any dietary restrictions or special health care needs?
5. Permanency/Family Services Domain
This domain assesses the child’s need to maintain or establish relationships with biological family members and other supportive adults. Foster parents may be required to facilitate visits with biological family members, help the child build new relationships, and maintain a sense of identity and belonging.
- Does the resource parent transport the child to have regular visits with biological family members?
- Does the child need help maintaining cultural or religious connections?
- Are there existing relationships that need to be supported or repaired?
- How often does the foster parent need to communicate with social workers or therapists about family involvement?
What Foster Care Reimbursement Covers
Foster care reimbursement is intended to cover the costs associated with the child’s care and support. This includes:
- Food and clothing – Meals, snacks, school lunches, and appropriate seasonal clothing.
- Medical and dental care – Doctor’s visits, dental check-ups, and therapy (through Medi-Cal).
- Education and school supplies – Backpacks, books, tutoring, and school fees.
- Transportation – Gas, car maintenance, and public transportation costs.
- Childcare – If the foster parent works or attends school.
- Extracurricular activities – Sports, music lessons, and after-school programs.
What Foster Care Reimbursement Does Not Cover
While reimbursement covers most basic expenses, foster parents are typically responsible for:
- Home improvements (e.g., adding a room)
- Major medical expenses not covered by Medi-Cal
- Luxury items (e.g., gaming systems, vacations)
Although we believe that foster parents should be compensated for all their hard work, it is always important to focus on the primary mission of keeping children safe and providing a caring and nurturing environment.
Just like with any profession, it is possible to find individuals who want to become foster parents only to make additional money. You find this in all sectors. People who may not have the passion, the calling, or the commitment to their role, and instead, are driven by a “salary”.
In Knotts Family Agency, we are very intentional and selective in who is approved as a foster parent. We recognize that money is a legitimate reason, but no matter the stage in life or what the original motivator is, all foster parents are held to the same high standards.
How Knotts Family Agency Supports Foster Parents
Knotts Family Agency offers ongoing support to help foster parents succeed. This includes:
✅ Pre-service training to prepare for trauma-informed care and behavioral challenges.
✅ Financial guidance to help manage reimbursement and child-related expenses.
✅ Access to therapists and social workers to support the child’s emotional needs.
✅ 24/7 support for emergencies and urgent issues.
✅ Post-placement support to ensure long-term success for both the foster parent and child.
Thinking About Fostering? Start Your Journey Today
Becoming a foster parent is a rewarding experience that changes lives — but you don’t have to do it alone. Knotts Family Agency is here to support you every step of the way. Call us today at 909-880-0600 or contact us online to get more information.
Your journey to making a difference in a child’s life starts with a single step — take it today!