Tennessee law provides stipends for relatives caring for children to reduce state custody placements

NASHVILLE, Tenn. (WKRN) — More relatives of children needing homes have the chance to keep them out of foster care and under their own roofs, thanks to a new state law that removed the income cap to qualify for reimbursement from the state.

The relative caregiver stipend program , which launched in 2023, issues reimbursements to qualifying relatives, including grandparents, aunts, uncles, brothers, sisters, etc., who take custody of their family members who cannot be cared for by their biological parents.

Experts recognize a child benefits much more from being raised by a relative, but it often isn’t feasible for the relative caregiver.

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“I think that one of the barriers or challenges that relatives have sometimes when deciding to take in a child is, ‘Do I have the income, or do I have the financial resources to provide and care for this child on a long-term basis,'” Kori Caldwell, the assistant director for community-based programs at Youth Villages said.

Caldwell told News 2 entering the foster care system can negatively impact an already traumatized child.

“They’re often entering a home they’ve never been to, so they’re having to learn new parents, new expectations, new rules,” Caldwell said. “That transition can be very challenging for kids and it can contribute to some of the mental health issues they may already have or contribute to some of the trauma they may experience.”

In 2022, lawmakers passed a bill to create the relative caregiver stipend program, which provides state-issued reimbursements — half the amount of what a foster care family receives — to qualifying relative caregivers. In the program’s first year, the state paid out close to $5.7 million in stipends to help 1,473 children in a relative’s care. Only eight of those children ultimately entered state custody, according to the Department of Children’s Services.

This past legislative session, lawmakers passed a bill expanding the number of qualifying relative caregivers in the program by lifting the income cap and making other changes. The bill received bipartisan support.

“This is a valuable piece [ of legislation ] because I firmly believe the best place for our children is with folks that know them and love them,” Rep. Sam McKenzie (D-Knoxville) said. “Foster parents may grow to love, but [ the children ] know their grandchildren, their nieces, their nephews, sometimes their brothers and sisters, and they love them.”

While DCS cannot begin issuing the stipends to the newly qualifying relative caregivers under the updated law until rule changes are officially passed, the program has still helped more children this year compared to last. Year-to-date, the state has paid out around $7.2 million to help 2,275 children. Of those children, 33 have had to enter state custody.

“It’s actually a really successful model in keeping those kids from coming into state custody,” Jim Layman, the executive director of legislation and rules for DCS told lawmakers during a committee meeting last week.

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Caldwell hopes the change gives even more relative caregivers the means to step up before the state has to step in.

“If they’re able to access more financial assistance and more support, then hopefully that will help people make the decision to take in those relatives or take in those children so they don’t have to enter into the foster care system,” Caldwell said.

DCS director of communications, Ashley Zarach, elaborated more on the program in a statement to News 2:

“ We know outcomes are better for children who are able to stay with a safe and willing family member instead of coming into foster care. The Department of Children’s Services is grateful for the legislature’s support of expanding eligibility for the DCS Relative Caregiver Program. The program furthers the Department’s prevention-to-permanency goal – preventing children from coming into DCS custody, and finding safe and stable permanency for youth in our state. We hope the expanded eligibility will allow more relatives to step in during a family crisis, which in turn will create less trauma for children and a higher chance of reunification with parents. “

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