Grandparents who provide regular childcare or raise grandchildren may qualify for several government benefits, including TANF child-only cash grants, child care development fund (CCDF) subsidies, kinship foster care payments, Medicaid coverage for the children, and federal tax credits. The specific programs and payment amounts vary by state, but most grandparents can access at least two or three of these supports. Use our free benefits screener to check your eligibility in minutes.
What Government Programs Help Grandparents Who Provide Childcare?
There are two main situations where grandparents can receive government support: when they serve as the primary caregiver raising a grandchild, and when they provide regular childcare so the parents can work. The table below summarizes the major programs available in each scenario.
| Program | Who It Helps | Typical Benefit | Grandparent's Income Counted? |
|---|---|---|---|
| TANF Child-Only Grant | Grandparents raising grandchildren | Approximately $100 to $400/month per child (varies by state) | No |
| CCDF Child Care Subsidy | Working parents using grandparent as provider | Subsidized child care payments to the grandparent | Parent's income is evaluated |
| Kinship Foster Care | Court-placed children with grandparents | Approximately $300 to $800/month per child (varies by state) | No |
| SNAP (Food Stamps) | Grandparent-headed households | Approximately $200 to $400/month for small households | Yes |
| Medicaid/CHIP | Children in grandparent care | Free or low-cost health coverage for the child | Child's income only in most cases |
| Earned Income Tax Credit | Working grandparents with dependents | Up to approximately $4,000 to $7,000 depending on qualifying children | Yes |
How Does the TANF Child-Only Grant Work for Grandparents?
The TANF (Temporary Assistance for Needy Families) child-only grant is one of the most important benefits for grandparents raising grandchildren. Unlike regular TANF, the child-only grant evaluates only the child's income, not the grandparent's. This means grandparents can work full-time, collect Social Security, or have savings and still qualify.
Key features of the TANF child-only grant:
- The grant covers basic needs like food, clothing, and shelter for the child
- Monthly amounts vary significantly by state, generally ranging from around $100 to $400 per child
- The grandparent does not need to meet work requirements
- There is typically no time limit on how long the child can receive benefits
- The grandparent's income, assets, and employment status are generally not considered
To apply, contact your local Department of Social Services or TANF office. Bring documentation of your relationship to the child, proof that the child lives with you, and the child's birth certificate and Social Security number.
Can Grandparents Get Paid Through Child Care Subsidies?
Yes. Through the Child Care and Development Fund (CCDF), states provide subsidies to help low-income working families pay for child care. In most states, grandparents can register as an approved child care provider and receive subsidy payments when caring for their grandchildren while the parents work.
How CCDF subsidies work for grandparents as providers:
- The child's parents must meet income eligibility requirements (typically below 85% of State Median Income, though many states set lower thresholds)
- The parents must be working, in school, or in a job training program
- The grandparent registers as a "license-exempt" or "legally exempt" family child care provider with the state
- The state pays the grandparent directly at a set rate for providing care
- Payment rates for family or home-based providers vary by state but often range from approximately $15 to $40 per day per child
Contact your state's child care resource and referral agency to learn about provider registration requirements and current payment rates in your area.
What Is Kinship Foster Care and How Do Grandparents Qualify?
Kinship foster care applies when a child has been formally removed from their parents' home by child protective services and placed with a grandparent or relative. Grandparents in this situation can receive monthly foster care payments to help cover the cost of raising the child.
Kinship foster care payment details:
- Payments vary widely by state, generally ranging from around $300 to $800 per month per child
- Some states offer the same rate as non-relative foster parents, while others pay a lower kinship rate
- Grandparents typically must pass background checks and home safety inspections
- Some states, like Arizona, offer kinship stipends of approximately $300 per month even for informal placements
- The federal Fostering Connections to Success Act encourages states to provide equal support to kinship caregivers
Steps to become a kinship foster care provider:
- Contact your local child welfare agency or Department of Children and Family Services
- Complete a background check and home study
- Attend any required training sessions (requirements vary by state)
- Receive approval as a kinship foster care provider
- Begin receiving monthly payments for each child placed in your care
What Tax Credits Can Grandparents Claim for Childcare?
Grandparents who are the primary caregivers for their grandchildren may qualify for several federal tax benefits.
| Tax Credit | Maximum Amount | Key Requirement |
|---|---|---|
| Earned Income Tax Credit (EITC) | Up to approximately $7,830 (with 3+ qualifying children, 2025 tax year) | Must have earned income; child must live with you for more than half the year |
| Child Tax Credit (CTC) | Up to $2,000 per qualifying child | Child must be your dependent; income phase-outs apply |
| Child and Dependent Care Credit | Up to $1,050 for one child or $2,100 for two or more | Must pay for care so you can work or look for work |
| Dependent Care FSA | Up to $5,000 in pre-tax savings | Parents can use FSA to pay a grandparent (if not a tax dependent) |
Important note about the Dependent Care FSA: Parents can use a Dependent Care FSA to pay a grandparent for providing childcare, but only if the grandparent is not claimed as a dependent on the parents' tax return. The grandparent must also report the income on their own tax return.
What Other Benefits Are Available to Grandparent Caregivers?
Beyond the major programs listed above, grandparents raising grandchildren may also qualify for:
- SNAP (Food Stamps): Grandparent-headed households can apply for SNAP benefits. The child can sometimes be included in the grandparent's household for benefit calculation purposes, potentially increasing the monthly allotment.
- Medicaid and CHIP: Children living with grandparents are often eligible for Medicaid or the Children's Health Insurance Program regardless of the grandparent's income. Eligibility is typically based on the child's income.
- WIC: If the grandchild is under age 5 and the household meets income guidelines, WIC provides supplemental nutrition assistance including formula, milk, and other foods.
- School Meals: Children in grandparent-headed households may qualify for free or reduced-price school meals based on household income.
- LIHEAP: Grandparent households may qualify for help paying heating and cooling bills through the Low Income Home Energy Assistance Program.
- Lifeline: Eligible households can receive discounts on phone and internet service.
Use our benefits screener to check which of these programs you may qualify for based on your specific situation.
How to Apply for Grandparent Childcare Benefits: Step by Step
- Determine your situation: Are you raising the grandchild full-time, or providing regular childcare while parents work? This determines which programs apply.
- Gather documentation: Collect the child's birth certificate, Social Security number, proof of your relationship, proof of income, and documentation showing the child lives with you.
- Screen for eligibility: Use our free benefits screener to identify all programs you may qualify for.
- Apply for TANF child-only grant: Visit your local Department of Social Services. Specify that you are requesting a child-only grant as a non-parent caregiver.
- Register as a child care provider: If you provide childcare while parents work, contact your state's child care resource and referral agency to register as a license-exempt provider.
- Apply for Medicaid/CHIP for the child: Contact your state Medicaid office or apply online at healthcare.gov.
- File taxes strategically: Claim the child as a dependent if eligible, and apply for EITC, CTC, and the Child and Dependent Care Credit.
- Apply for SNAP and other supports: Visit your local benefits office or apply online through your state's portal.
Frequently Asked Questions
Can I receive TANF benefits for my grandchild without legal custody?
In most states, yes. TANF child-only grants are available to grandparents who are caring for grandchildren, even without formal legal custody or guardianship. You typically need to demonstrate that the child lives with you. However, having legal custody or guardianship can make the process smoother and may open up additional benefits.
Does my income affect my grandchild's eligibility for benefits?
For TANF child-only grants, your income is generally not counted. Only the child's own income (which is usually zero) is evaluated. For other programs like SNAP, your income as the head of household is counted. For Medicaid and CHIP, the child's eligibility is usually based on the child's own income, not the grandparent's.
Can I get paid by the state to watch my grandchildren?
Yes, in several ways. You can register as a child care provider through your state's CCDF subsidy program if the parents meet income requirements. You can receive kinship foster care payments if the child has been placed with you by child welfare. And parents can pay you through a Dependent Care FSA as long as you are not their tax dependent.
How much money can grandparents receive for raising grandchildren?
The total amount depends on which programs you qualify for and your state. Combining a TANF child-only grant, SNAP, and tax credits, a grandparent could potentially access several hundred dollars per month plus annual tax refunds. Kinship foster care payments, where applicable, can add approximately $300 to $800 per month per child depending on the state.
Where can I find help applying for these benefits?
Start with our free benefits screener to identify programs you qualify for. You can also contact your local Area Agency on Aging, call 211 for local resource referrals, or reach out to organizations like the Grandfamilies and Kinship Support Network (gksnetwork.org) for guidance specific to grandparent caregivers.
