Children’s Bureau/ACYF/ACF/HHS

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FACTSHEET 

FOR FAMILIES

November 2016

Planning for Adoption: 

Knowing the Costs and 

Resources

WHAT’S INSIDE

Types of adoption

Adoption-specific 

expenses

Resources to help pay 

for adoption

Additional resources 

The decision to adopt is the beginning of an exciting 

journey to build or grow a family. Whether through 

pregnancy and childbirth or by way of adoption, 

welcoming a new child into the home may involve 

considerable expense. Prospective adoptive parents 

should be knowledgeable about adoption costs and 

the resources available to help make adoption more 

affordable. Employer-provided adoption benefits, as 

well as Federal or State tax credits, subsidies, loans, 

and grants, may be used to offset some adoption costs.

Adoption-related expenses vary widely, which makes 

it difficult to predict the exact costs you may face. 

This factsheet seeks to explain the various adoption 

expenses and some of the resources that may be 

available depending on the type of adoption you choose. 

For information about the different types of adoption, 

how to choose an agency or adoption services provider, 

and the process of being matched with a child, read 

Adoption Options: Where Do I Start? at https://www.

childwelfare.gov/pubs/f-adoptoption/. 
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This publication is available online at https://www.childwelfare.gov/pubs/s-cost/.

Types of Adoption

You will gain a better understanding of adoption costs by 

working closely with your adoption agency and adoption 

professional. Adopting a child from foster care involves 

minimal expense, while non-foster care adoptions tend to 

be considerably more expensive. Each of the adoption 

options listed below is governed by State statutes, which 

vary widely. For more information about adoption-specific 

laws in your State, visit Child Welfare Information 

Gateway’s State Statute Search at https://www.

childwelfare.gov/topics/systemwide/laws-policies/

state/?CWIGFunctionsaction=statestatutes:main.

Adoption of a child from foster care: Your public child 

welfare agency can work with you to identify children who 

are waiting for homes. Some States contract with private 

agencies to perform adoptive services for children in 

foster care. To learn more about how to adopt a child 

from foster care, you can check with your public child 

welfare agency or consult AdoptUSKids at http://www.

adoptuskids.org.

Private agency adoption: This type of adoption occurs 

outside the public child welfare system and is arranged by 

a private agency, which matches an expectant mother or 

parents with an adoptive family. Some agencies will 

encourage birth parents to choose a prospective 

adoptive family based on information profiles created by 

the prospective families. 

Independent adoption: This type of adoption occurs 

outside the public child welfare system. Attorneys assist 

prospective and expectant parents with the adoption 

process. Families adopting independently identify the 

expectant parents (or pregnant woman), or, in some 

cases, the attorney may identify expectant parents who 

are seeking an adoptive family. 

Intercountry adoption: This involves the adoption of a 

child from outside the United States. There is generally 

less information available about the child to be adopted, 

and physical and mental health issues may not be fully 

known ahead of time. The United States is a party to the 

Hague Convention on Protection of Children and 

Cooperation in Respect of Intercountry Adoption, an 

international treaty that provides safeguards for children 

and families involved in adoptions with participating 

countries. For more information, see the Information 

Gateway factsheet on intercountry adoption at https://

www.childwelfare.gov/pubs/factsheets/hague/ and the 

U.S. Department of State webpage at https://travel.state.

gov/content/adoptionsabroad/en/hague-convention.html. 

This publication does not address the adoption of 

stepchildren. For information on adopting a stepchild, 

consult Information Gateway’s Stepparent Adoption at 

https://www.childwelfare.gov/pubs/f-step/.

Adoption-Specific Expenses

This factsheet considers the expenses associated with 

foster care, private agency, independent, and intercountry 

adoptions—all of which are contingent on many factors 

and circumstances. The agency or social worker you are 

working with should provide you with detailed 

information, in writing, about any fees you will be charged 

during the adoption process.

Adoption From Foster Care

Adopting a child from foster care involves very little 

expense because of Federal and State adoption 

assistance programs that minimize financial obstacles and 

encourage the placement of children whose special needs 

or circumstances might make them more difficult to place, 

such as older youth, sibling groups, or children with 

specific medical or mental health problems.

Federal Adoption Assistance

Title IV-E of the Social Security Act provides for assistance 

to families adopting eligible children from foster care in 

two forms:

 A one-time, nonrecurring reimbursement for adoption 

transaction costs

 Recurring monthly maintenance payments for the 

child’s care

Nonrecurring expenses. Title IV-E provides funding to 

States to reimburse families for certain expenses that the 

law defines as “reasonable and necessary adoption fees,” 

such as the costs of the required home study, court costs, 

attorney’s fees, and other adoption-related expenses. 
Planning for Adoption: Knowing the Costs and Resources https://www.childwelfare.gov

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This publication is available online at https://www.childwelfare.gov/pubs/s-cost/.

This Federal subsidy is dispersed to adoptive families of 

eligible children as a one-time payment. Each State 

provides varying subsidy amounts for the nonrecurring 

costs, but the Federal limit on the amount States can 

provide under title IV-E is $2,000 for each adoptive 

placement. Expenses that surpass this cap may be tax 

deductible in some States.

Recurring monthly payments. Title IV-E also provides 

financial assistance for eligible adoptions in the form of 

recurring monthly payments to help cover a child’s care 

until he or she turns 18 or, in some States, until age 21. 

The maximum amount paid may not exceed the amount 

the State would pay to maintain the child in foster care.

Read Adoption Assistance for Children Adopted 

From Foster Care at https://www.childwelfare.

gov/pubs/f-subsid/ to learn more about Federal 

and State assistance programs. To determine 

which subsidies may apply in a prospective 

adoption from foster care, visit Information 

Gateway’s State adoption assistance database at 

https://www.childwelfare.gov/topics/adoption/

adopt-assistance/. 

For a summary of State subsidies, visit the 

North American Council for Adoptable Children 

(NACAC) website at http://www.nacac.org/

adoptionsubsidy/summary.html. The NACAC 

website also provides detailed information on 

State adoption subsidies, including eligibility 

requirements, additional benefits, and 

contact information at http://www.nacac.org/

adoptionsubsidy/adoptionsubsidy.html.

State Adoption Assistance

State adoption assistance programs may be available for 

children with special needs who are not eligible under the 

Federal title IV-E adoption assistance program. State 

adoption assistance includes health insurance coverage 

under the Medicaid program or other medical assistance 

to cover some or all of the child’s medical needs—

including special education, therapy, and rehabilitation—

and supplemental forms of assistance, depending on the 

State.

Private Agency Adoption

Private agency adoptions conducted outside the public 

child welfare system vary widely in costs based on the 

agency used and the individual adoption circumstances 

but may range from $20,000 to $45,000. Overall costs may 

include the home study, court and legal fees, preadoption 

and postadoption counseling for birth parents, birth 

parent medical and legal expenses, adoptive parent 

preparation and training, social work services needed to 

match a child with a prospective family, interim care for a 

child, and postplacement supervision until the adoption is 

finalized. Some agencies may adjust their fees based on 

family income. There may also be reduced fees for 

families who locate a birth parent on their own but who 

need the agency for facilitating the adoption, including 

counseling, home study, and/or related services. Some 

agencies’ fees are inclusive of any and all matches with 

birth parents, regardless of whether or not the match 

results in a placement. Other agencies charge for each 

match, and fees may vary depending on birth parent 

expenses. It is important to ask for a written description of 

what the agency’s fees do and do not cover.

While the cost of the home study may be included in the 

one-time overall adoption fee, home study fees can run 

between $1,500 and $4,000. Again, this can vary and may 

not be inclusive of adoptive parent preparation and 

training and postplacement supervision. For more 

information on the home study process and related costs, 

read The Adoption Home Study Process at https://www.

childwelfare.gov/pubs/f-homestu/. 
Planning for Adoption: Knowing the Costs and Resources https://www.childwelfare.gov

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This material may be freely reproduced and distributed. However, when doing so, please credit Child Welfare Information Gateway. 

This publication is available online at https://www.childwelfare.gov/pubs/s-cost/.

The cost data cited in this publication were 

developed as an estimate of potential expenses 

and are a compilation of figures from several 

sources, including the following:

 U.S. Department of State, Bureau of Consular 

Affairs (https://travel.state.gov/content/dam/

aa/pdfs/fy2014_annual_report.pdf) 

 Adoptive Families magazine, “Adoption Cost 

and Timing in 2014–2015” (https://www.

adoptivefamilies.com/how-to-adopt/

adoption-cost-and-timing-2014-2015/)

An adoption professional can help you 

understand your potential expenses. 

All domestic adoptions, as well as some intercountry 

adoptions, must be finalized in a U.S. court. Court 

documentation fees can range from $500 to $2,000, while 

the costs for legally representing adoptive parents may 

range from $1,500 to $4,000. Whether or not these 

expenses are included in the private agency’s fees varies 

with the State and with the agency’s role in the finalization 

of the adoption. Costs may also be affected by what legal 

action the attorney needs to take to terminate parental 

rights.

Independent Adoption

An independent adoption outside the public child 

welfare system involves an attorney assisting prospective 

adoptive parents and expectant parents with the 

adoption process. These adoption costs may range from 

approximately $15,000 to $40,000. This range may include 

the home study, the birth mother’s medical expenses, 

and separate legal and court fees for representing both 

adoptive and birth parents. There may be additional 

costs if complications arise during the birth process or 

if the search for expectant parents involves advertising. 

State laws govern reimbursements to birth mothers and 

may include restrictions regarding advertisements for 

adoptive parents. If allowed, advertising expenses can 

run between $500 and $5,000. The Information Gateway 

publication Regulation of Private Domestic Adoption 

Expenses features information about State laws governing 

these types of expenses and is available at https://

www.childwelfare.gov/topics/systemwide/laws-policies/

statutes/expenses/.

Intercountry Adoption

Intercountry adoption fees differ widely from country 

to country. Costs tend to be higher than for domestic 

adoptions because they may include foreign travel 

and immigration processing in addition to court costs, 

mandatory adoption education for prospective adoptive 

parents, and related documentation. Average costs may 

run between $20,000 and $50,000. Costs also depend 

on the type of organization managing the adoption: 

government or private agency, orphanage, nonprofit, 

attorney, facilitator, or a combination of these. 

Some intercountry adoptions are finalized in the child’s 

country of origin, while others are finalized in the 

United States, particularly in cases where a family’s 

State does not recognize a foreign adoption decree. 

Even when adoptions are finalized abroad, many 

parents elect to finalize the adoption in a U.S. court 

as well for documentation purposes. Finalizing an 

intercountry adoption in a U.S. court provides additional 

legal protections but may add to overall adoption 

expenses. For more information about Federal and State 

requirements for intercountry adoption, including which 

States fully recognize foreign adoptions, refer to State 

Recognition of Intercountry Adoptions Finalized Abroad 

at https://www.childwelfare.gov/topics/systemwide/

laws-policies/statutes/intercountry/.

Depending on which countries are involved, there may be 

additional costs, including the following:

 Escort fees for when parents cannot travel to 

accompany the child to the United States

 Medical care and treatment for children

 Translation fees

 Foreign attorney and foreign agency fees

 Passport and visa processing fees

 Costs of visa medical examinations

 Counseling and support after placement
Planning for Adoption: Knowing the Costs and Resources https://www.childwelfare.gov

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This material may be freely reproduced and distributed. However, when doing so, please credit Child Welfare Information Gateway. 

This publication is available online at https://www.childwelfare.gov/pubs/s-cost/.

The U.S. Department of State offers various 

resources with additional information about 

intercountry adoption:

 FY 2015 Annual Report on Intercountry 

Adoption (https://travel.state.gov/content/

dam/aa/pdfs/2015Annual_Intercountry_

Adoption_Report.pdf) 

 Intercountry Adoptions: From A to Z 

(https://travel.state.gov/content/dam/aa/pdfs/

Intercountry_Adoption_From_A_Z.pdf)

 Adopting Parents [web page] (https://travel.

state.gov/content/adoptionsabroad/en/

information-for-you/adopting-parents.html) 

Additionally, Information Gateway offers a 

factsheet, Intercountry Adoption: Where Do I 

Start?, that describes the unique circumstances of 

intercountry adoption at https://www.childwelfare.

gov/pubs/f-inter/.

Resources to Help Pay for Adoption

While there are costs and fees associated with all types 

of adoption, there are also a variety of resources available 

to help you pay for them. In addition to Federal and State 

financial assistance for children adopted from foster care, 

families may also be able to access employer-provided 

adoption benefits, tax credits, and loans or grants to 

offset adoption expenses.

Employer-Provided Benefits

Many employers offer adoption benefits to help make 

adoption more affordable and to recognize adoptive 

parents in the same way as biological parents. These 

benefits come in the form of financial assistance, 

adoption counseling, and employee leave policies. Recent 

surveys by Aon Hewitt Associates show that more than 

50 percent of employers offer some type of adoption 

benefit—a significant increase over the 12 percent of 

employers offering such benefits in 1990 (http://www.

employeebenefitadviser.com/slideshow/top-adoptionfriendly-health-care-and-insurance-industry-employers). 

Some companies may limit eligibility for adoption benefits 

to full-time employees or those who have been with the 

organization for a certain number of years. The type of 

adoption may also determine the benefits offered (e.g., 

some employers specify that the child being adopted 

cannot be older than 16 or 18 years, some may withhold 

benefits when a stepparent adopts his or her stepchild or 

stepchildren).

Financial Assistance

Some employers offer a lump sum payment to help with 

adoption expenses. According to the Dave Thomas 

Foundation for Adoption, these benefits range from $500 

to $25,300, with the average policy offering a maximum 

reimbursement benefit of $8,000 and 5 weeks of paid 

leave (www.AdoptionFriendlyWorkplace.org). Typical 

reimbursement plans might cover 80 percent of certain 

itemized expenses up to an established ceiling. Some 

companies reimburse at a higher rate when employees 

adopt children facing barriers to permanency, such as 

children with disabilities. 

In most cases, employer-provided adoption benefits are 

paid after an adoption is finalized, although some may 

help with expenses earlier in the process.

Parental Leave Policies

Companies with 50 or more employees are required by 

Federal law to grant parental leave to employees who 

have adopted a child. Both mothers and fathers are 

eligible for up to 12 weeks of unpaid leave upon the birth 

or adoption of a child. The law ensures that employees 

can return to their current jobs or an equivalent position, 

and it requires employers to continue health benefits 

during that period. Information about this law, titled the 

Family and Medical Leave Act, can be found at www.dol.

gov/whd/fmla.

Some employers allow for additional unpaid leave time, 

and employees may have the option of combining 

accumulated vacation or sick leave with the allotted 

unpaid leave to extend their time off. Some employers 

may even offer paid leave for employees who adopt. 
Planning for Adoption: Knowing the Costs and Resources https://www.childwelfare.gov

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This material may be freely reproduced and distributed. However, when doing so, please credit Child Welfare Information Gateway. 

This publication is available online at https://www.childwelfare.gov/pubs/s-cost/.

Information Resources

Employer-provided resources may include access to an 

adoption specialist to answer specific questions or assist 

with special situations, such as adopting a child with 

certain physical or developmental needs. Your employer’s 

benefits package may also include referrals to licensed 

adoption agencies, support groups, and organizations to 

help create and support your new family.

Employers That Offer Adoption 

Benefits

To determine whether your company includes 

adoption help in its benefits package, contact 

your human resources department.

Wendy’s International sponsors the Dave Thomas 

Foundation for Adoption and its AdoptionFriendly Workplace program, which encourages 

employers to offer adoption-related benefits 

and gives credit to those who do. Its website 

includes a list of the nation’s 100 best adoptionfriendly workplaces, a free toolkit, and technical 

assistance for companies looking to start an 

adoption benefits program. For more information, 

visit www.AdoptionFriendlyWorkplace.org. 

The Holt International website includes an 

extensive list of employers providing benefits at 

www.holtinternational.org/adoption/benefits.

shtml. 

The U.S. Department of Defense reimburses 

adoption expenses up to $2,000 per child or 

up to $5,000 per year to military families whose 

adoptions are arranged by an authorized 

adoption agency. Benefits are paid after the 

adoption is completed. For more on adoption 

benefits for military families, see Military 

Families Considering Adoption at https://

www.childwelfare.gov/pubs/f-milita/ and the 

Department of Defense adoption reimbursement 

policy at http://www.dtic.mil/whs/directives/

corres/pdf/134109p.pdf. 

Tax Credits

Adoption tax credits may be available to offset your 

adoption expenses. Consulting a tax professional will help 

you determine your eligibility for these credits.

Federal Adoption Tax Credits

Federal adoption tax credits may be available to help 

offset the costs of adopting and are issued on a one-time 

per child basis. Taxpayers are only eligible for credit if 

they have Federal income tax liability, and the credit only 

applies to the tax year in which the adoption was finalized. 

The amount will depend on family income, whether the 

child being adopted is considered as having specific 

challenges—such as medical or developmental 

concerns—and whether there are other employer-based 

adoption benefits. Adoptions other than special needs 

cases may also be eligible for the Federal tax credit, but 

taxpayers must have qualified and documented adoption 

expenses. 

Information about tax credits and tax exclusions for 

adoption is available on the Internal Revenue Service 

website at www.irs.gov/taxtopics/tc607.html. 

State Adoption Tax Credits

Several States have enacted tax credits for families 

adopting children from the public child welfare system, 

with policies varying from State to State. For information 

on State adoption assistance, visit https://www.

childwelfare.gov/adoption/adopt_assistance and http://

www.nacac.org/adoptionsubsidy/stateprofiles.html.

Adoption Loans and Grants

Loans and grants are available for adoptive parents to 

offset their expenses and can apply to all types of legal 

adoptions. All of these have specific eligibility criteria 

based on certain distinctions (e.g., marital status, religion, 

income level).

More information about grants, loans, and tax 

credits for adoption is available on the Information 

Gateway website at https://www.childwelfare.gov/

topics/adoption/adoptive/expenses/grants-loans/.
Planning for Adoption: Knowing the Costs and Resources https://www.childwelfare.gov

Additional Resources

Building Your Family (www.buildingyourfamily.com) 

offers a national directory containing advice on familybuilding options and practical tools, including information 

on adoption financing.

Creating a Family offers extensive adoption resources, 

including information on costs and financing, at https://

creatingafamily.org/adoption/resources.

Independent Adoption Center provides details on 

various adoption funding sources at http://www.

adoptionhelp.org/financial-aid.

National Adoption Center provides resources for 

prospective adoptive families exploring adoption from 

foster care at http://www.adopt.org/.

National Adoption Foundation offers adoption grants, 

loan programs, and adoption insurance at www.nafadopt.

org.

NACAC lists State adoption subsidy profiles and provides 

information on negotiating for an adoption subsidy at 

http://www.nacac.org/adoptionsubsidy/stateprofiles.html. 

NACAC also provides information on adoption tax credits 

at http://www.nacac.org/taxcredit/taxcredit.html.

National Foster Care and Adoption Directory lists 

public and private adoption agencies and adoption 

program managers for every State, the District of 

Columbia, Puerto Rico, and the U.S. Virgin Islands at 

https://www.childwelfare.gov/nfcad/.

Resources4Adoption (www.Resources4Adoption.com) is 

a nonprofit agency that provides adoption financing 

education, information, and resources for locating and 

submitting adoption grants.

Suggested Citation: 

Child Welfare Information Gateway. (2016). Planning for 

adoption: Knowing the costs and resources. Washington, 

DC: U.S. Department of Health and Human Services, 

Children’s Bureau.

U.S. Department of Health and Human Services 

Administration for Children and Families 

Administration on Children, Youth and Families 

Children’s Bureau