Phoenix, AZ – Today, Governor Katie Hobbs announced the largest increase in financial support for families who foster children in the care of the Arizona Department of Child Safety (DCS) since the agency was created in 2014. DCS is raising rates for licensed foster homes with the goal of recruiting and retaining more families and helping improve outcomes for children in DCS custody by facilitating placements in family-like settings, and consequently decreasing the state's use of group homes.
To give more children in DCS custody access to the foster families they deserve, the Department is implementing a 50% increase to the daily rate for licensed foster families, including licensed kinship foster families, who care for children ages 6 and older. This equates to an average of $1,000 to $1,700 per month per child depending on level of care needed.
"By recruiting and retaining more foster families, we are helping set more children up for success and realize the Arizona Promise," said Governor Katie Hobbs. "Fostering a child is a selfless and meaningful act, and I encourage Arizonans who are willing and able to consider doing so. I'm proud to deliver this much needed support to families who open their homes to care for children they foster."
Currently, Arizona does not have enough foster families to care for children and siblings ages 6 and older. From 2017 to 2025, during a time when DCS also achieved a significant decline in the out of home care population, Arizona also saw a 60 percent decline in licensed foster homes and a 62 percent decrease in licensed beds. DCS estimates a need for 1,046 additional foster homes statewide in the next 12 months for youth ages 6 to 17.
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When DCS does not have safe and appropriate foster families available, they must place children in group homes, which do not provide the same level of stability and support as a family setting. Additionally, the average cost of group homes, referred to as congregate care, far exceeds that of family foster care.
Licensed foster families, who volunteer their homes to Arizona children who have experienced trauma, currently receive a daily rate, which is based on the child's age and needs, to provide for the cost of caring for a child in out-of-home care. In addition, foster families can request special allowances to cover specific child needs like educational expenses, graduation ceremony fees, and emergency clothing.
In 2009, daily reimbursements for licensed foster families were cut by 20%. A slight increase for children 12 and older was introduced in 2015, and nominal adjustments to special allowances were made in 2022. Daily rates and special allowances are not adjusted for inflation on an annual basis.
"Arizona's kinship and foster families are the backbone of our child welfare system," said DCS Director Kathryn Ptak. "When children cannot safely remain with their biological families, it is vital that we provide them with the opportunity to grow and heal in nurturing family environments. By increasing reimbursement rates, we can recruit and retain more families and support licensed kinship families by providing better care for children, and reduce our reliance on costly congregate care settings."
"We applaud the Hobbs Administration for taking this important step to better support foster and kinship families who open their homes to older children," said AZ Council of Human Service Providers President & CEO Candy Espino. "These caregivers provide critical stability during some of the most difficult moments in a child's life, and this rate increase will help ensure they have the resources they need to succeed. We look forward to continuing to partner with the state to improve outcomes for children and families across Arizona."
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"An increase in support is a game changer for families who open their hearts and homes to older children and teens," said az127 Executive Director Katie O'dell. "All children deserve stability, connection and the chance to thrive in a family/ With this investment in Arizona's foster families we not only recognize the value of foster families but also make it more possible for them to say yes to children and teens who need them the most."
"We're thrilled that reimbursement rates for licensed foster and kinship families are increasing," said Southwest Human Development Assistant Director Christie Scharrer. "This change is more than numbers. It's about opening doors for older children who need families now. Many of these young people are living in group settings, and we believe this increase will motivate foster families to welcome them into their homes. It also creates new incentives for kinship caregivers, those already giving so much, to become licensed and receive the support they deserve. Higher rates will ease financial strain, ensure children's essential needs are met, and lead to better outcomes for the ones who rely on us most."
"As a long-time provider dedicated to supporting Arizona's children and families, we applaud the Hobbs Administration and Department of Child Safety for recognizing the vital role foster and kinship families play," said Tracy Thurston, President & CEO, Arizona's Children Association. "Increasing foster family rates is more than a financial adjustment—it's an investment in stability, compassion, and brighter futures. For us at Arizona's Children Association, this means we can continue strengthening the support we provide to families who open their hearts and homes, ensuring they have the resources needed to create safe, nurturing environments. We are grateful to the people of Arizona for standing behind this increase and affirming their commitment to children and families. Together, we are building a stronger foundation for every child to thrive."
As we enter the holiday season, Governor Hobbs encourages Arizonans interested in becoming foster or adoptive parents to go here to learn more about the licensing and certification processes, the greatest areas of need, and tips for selecting an agency.
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