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Last updated: 26 September 2026
Grandparents raising grandchildren in Vermont may have several forms of financial help and benefits. The best route depends on custody, DCF involvement, the child’s needs, and the grandparent’s household. This guide focuses on cash assistance, caregiver payments, food, health coverage, child-care subsidies, tax credits, housing costs, and legal steps that affect benefits.
Bottom Line
Financial help usually starts with the child’s care arrangement. If your grandchild lives with you and is not in foster care, check Child-Only Reach Up first for monthly cash assistance. If the child is already in DCF custody, ask the Family Services worker about foster-care reimbursement instead. Families should also screen for 3SquaresVT food benefits, Dr. Dynasaur health coverage, child-care assistance, tax credits, and older-caregiver services.
Need Financial Help Today?
If you have no food, heat, or safe place to stay, use Vermont 2-1-1. For DCF cash, food, and fuel benefits, call 1-800-479-6151. For emergency housing, call 1-800-775-0506.
Start Here: Three Benefit Actions
- Ask which cash path applies. If the child is not in foster care, ask DCF about Child-Only Reach Up. If DCF has custody, ask the Family Services worker about foster reimbursement and kinship placement.
- Apply for cost-cutting benefits. Use the MyBenefits portal for programs such as 3SquaresVT, Fuel Assistance, and Reach Up. Health coverage is handled through Vermont Health Connect.
- Check benefits tied to your status. If you are age 55 or older, ask an Area Agency on Aging about kinship caregiver help. If you file taxes and can claim the child, check Vermont’s refundable child tax credit.
Quick Reference: Vermont Financial Help
| Benefit or help | What it can pay for | Key eligibility issue | Where to start |
|---|---|---|---|
| Child-Only Reach Up | Monthly cash for the child’s basic needs | Child lives with a non-parent caregiver and is not in foster care | DCF Benefits Service Center |
| Foster reimbursement | Ongoing costs of caring for a child in foster care | Child is in DCF custody and caregiver meets foster-care requirements | Family Services worker |
| Guardianship Assistance | Ongoing support after qualifying permanent guardianship | Narrow DCF permanency rules apply before guardianship is finalized | DCF Family Services |
| 3SquaresVT | Groceries for the eligible household | Household income, deductions, age, disability, and resources can matter | MyBenefits |
| Dr. Dynasaur | Health care for eligible children under 19 | Child’s Medicaid eligibility and household circumstances | Vermont Health Connect |
| Child-care assistance | Part of approved regulated child care | Service need, provider, legal status, income rules, and other conditions | Local child-care support agency |
| Vermont Child Tax Credit | Refundable state tax credit | You must be able to claim an eligible child on your tax return | Vermont Tax Department |
Some benefits are paid because of the child’s status. Others depend on the grandparent’s household, age, income, home, or tax filing. Do not assume approval for one program means approval for another.
What Has Changed
- Vermont DCF updated its kinship-care information in September 2026. The state says a separate kinship-specific foster licensing process is still being developed, with rulemaking work continuing toward 2027. Ask which current foster licensing rules apply now.
- DCF’s 2026 child-care rules use income guidelines effective 22 March 2026. The income guideline is waived for legal guardians who receive Reach Up Child Only, but the family still must meet other Child Care Financial Assistance Program conditions.
- For tax year 2026, Vermont’s Child Tax Credit is available for eligible children age six or younger at the end of the year, rather than stopping at age five.
Cash Assistance: Child-Only Reach Up
Child-Only Reach Up is Vermont’s clearest cash-assistance route for many grandparents raising grandchildren outside foster care. DCF describes it as monthly cash assistance for adults caring for minor dependent children of relatives or family friends.
Who may qualify: DCF says the child generally must be under 18, not receive Supplemental Security Income (SSI), not be in foster care, have little or no income, and live with a caregiver who is not the child’s legal, step, or adoptive parent. Limited exceptions and other factors may apply.
What the payment is: DCF calls the monthly payment a caretaker benefit. Vermont does not publish one flat child-only amount for every family. Ask the worker to calculate and explain your case.
How to apply: DCF provides a separate child-only application route. Call 1-800-479-6151 or follow the application steps on the Child-Only Reach Up page. If you need several programs at once, the regular MyBenefits application may save time. The GFS Vermont benefits portals guide can help you sort state application sites.
Reality check: Do not wait for a guardianship order just to ask about Child-Only Reach Up. But tell DCF exactly who has legal custody and whether a Family Services case is open. If the child is in foster care, Child-Only Reach Up is not the right cash path.
Kinship Care Payments and Guardianship Assistance
Foster-care reimbursement
If the child is in DCF custody, ask the Family Services worker about kinship placement and foster-care approval. Vermont’s kinship caregiver guide says foster caregivers receive a set monthly reimbursement and may also have access to Medicaid for the child, subsidized child care when DCF authorizes it, and some case-plan costs.
As of 13 September 2026, DCF says it is still developing a kinship-specific licensing process. That means a grandparent should not assume a special kinship license is already available. Ask the worker what current foster-home licensing or approval standards apply to your placement.
Guardianship Assistance Program
Guardianship Assistance is a narrow permanency benefit, not a general payment for every grandparent caregiver. Vermont law allows aid when a child was in DCF custody and lived in the relative’s home for at least six months before permanent guardianship. Current DCF policy adds other conditions, including at least six months in licensed foster care with the proposed relative guardian. The assistance agreement must be signed before the permanent guardianship order.
Read Vermont’s current kinship assistance law and ask the Family Services worker to explain the exact permanency option before signing final guardianship papers. The broader national grandfamily benefits hub explains how cash benefits, foster care, and legal custody can differ.
Important: Legal custody choices can change which payments are available. Do not give up a foster-care route or finalize permanent guardianship based only on a verbal promise about future assistance. Ask what benefit is approved, who receives it, and when the agreement must be signed.
Food Benefits: 3SquaresVT
3SquaresVT is Vermont’s Supplemental Nutrition Assistance Program (SNAP). It provides monthly food benefits to eligible households. This is a household benefit, not a payment only for the grandchild.
DCF says households with gross income at or below 185% of the federal poverty level may qualify under the expanded gross-income test. A household that includes someone age 60 or older or a person with a disability may still qualify in some cases when income is above that level, but resource and net-income rules can then matter. Deductions for certain shelter, dependent-care, and medical costs can affect the result.
Use the official 3SquaresVT program page to apply or call 1-800-479-6151. If you are 60 or older, the GFS Vermont 3SquaresVT guide explains senior-specific application issues.
Why this matters for grandfamilies: Child-Only Reach Up focuses on cash for the child. 3SquaresVT looks at the food household. You may need both programs to lower the household’s monthly costs.
Health Coverage: Dr. Dynasaur
Dr. Dynasaur is Vermont Medicaid coverage for children and teenagers under age 19. The Department of Vermont Health Access says coverage may be free or low cost, depending on eligibility. Children enrolled in Dr. Dynasaur also receive 12 months of protected continuous enrollment, with limited exceptions.
Review the official Dr. Dynasaur coverage page and apply through Vermont Health Connect. Customer support is 1-855-899-9600.
Cost-saving point: A child can have a different health-benefit status from the grandparent. Do not assume your Medicare, Medicaid, or private insurance status decides the child’s eligibility. Apply for the child and let Vermont determine the correct coverage.
Child-Care Help and Subsidies
Vermont’s Child Care Financial Assistance Program (CCFAP) can pay part of the cost of regulated child care. DCF says eligibility normally requires an accepted service need for child care, use of regulated care, Vermont residency, the program’s financial rules, and assets below the program limit.
A useful kinship rule appears on the current child-care assistance page: DCF says the income guideline is waived for legal guardians who receive Reach Up Child Only. This does not waive the other CCFAP conditions. If you are caring for a grandchild informally, ask the local child-care support agency how your legal status affects eligibility before relying on the subsidy.
CCFAP pays the approved amount to the child-care provider. The caregiver may still owe a copayment or any provider charge above the state’s payment. Ask for the written authorization showing covered hours, the state payment, and your share.
Tax Help and Refundable Credits
Tax credits are not monthly benefits, but they can return money to a grandparent who can claim the child on a tax return. For tax year 2026, the Vermont Department of Taxes lists a fully refundable Child Tax Credit of up to $1,000 per eligible child age six or younger at the end of the year. The credit begins to phase out when adjusted gross income exceeds $125,000 and phases out fully at $175,000.
The Tax Department tells grandparents and relative caregivers to check child-related credits. Use the current Vermont tax credits page and get tax help if more than one adult could claim the child. Guardianship alone does not automatically decide tax dependency.
If you own your home, check the GFS Vermont property-tax relief guide; those rules are based on the homeowner and household, not kinship status.
Housing, Utility, and Older-Caregiver Help
Fuel and housing costs
Vermont’s Fuel Assistance program can pay part of eligible heating costs. If you are at risk of homelessness, DCF’s 2026 homelessness response system directs households to regional services, prevention, and housing planning. See the GFS Vermont housing assistance guide and Vermont emergency help guide for household-cost routes.
Help for caregivers age 55+
Vermont’s Adult Services Division says its five Area Agencies on Aging provide family caregiver support. A Vermont caregiver-support guide identifies kinship caregivers age 55 or older who care for children age 18 or younger and lists possible help such as child-care or camp assistance, respite, training, and other supports through regional agencies.
Start with Vermont’s Area Agency services page or call the Senior Helpline at 1-800-642-5119. The GFS Vermont Area Agencies guide can help you identify the right regional office.
Reality check: Respite and flexible caregiver funds can be limited and may differ by region. Ask what is funded now, whether there is a waiting list, and whether money is paid to you or directly to a provider.
Legal Help That Unlocks Benefits
Legal authority can affect child care, foster payments, medical consent, and who may receive benefits for the child. Court papers are not required for every financial benefit.
Vermont Judiciary explains that a custodial minor guardian can make education and health decisions and can receive child support and government benefits for the child. Its current minor guardianship guide also warns that guardianship cases can be complicated.
Before changing custody, compare the money consequences. Probate guardianship does not create foster status, and DCF Guardianship Assistance rules must be met before finalization.
For legal questions about benefits, guardianship, housing, or DCF, call Legal Services Vermont at 1-800-889-2047 or use its current legal-help contacts. For kinship navigation, Vermont Kin as Parents can help caregivers understand financial, legal, medical, and child-care resources.
Where to Apply and What to Ask
| Need | Responsible route | Ask this first |
|---|---|---|
| Child-only cash | DCF Economic Services | “Should I file Child-Only Reach Up or the full benefits application?” |
| Foster payment | DCF Family Services | “What approval or license is required for reimbursement in this placement?” |
| Guardianship Assistance | DCF Family Services | “Is the child eligible, and must an agreement be signed before guardianship?” |
| Food and fuel | DCF MyBenefits | “Which household members belong on each application?” |
| Child health coverage | Vermont Health Connect | “What documents do you need for Dr. Dynasaur?” |
| Child care | Local CCFAP agency | “Does my legal status change the income test or service-need rule?” |
| Older caregiver support | Area Agency on Aging | “What kinship caregiver funds or respite are open now?” |
If several benefit systems are confusing, the GFS Vermont senior benefits guide can help you separate programs for the grandparent from programs for the child.
Documents to Gather
- The child’s full name, date of birth, Social Security number if available, and proof of identity.
- Any court order, DCF placement paper, guardianship order, or parent authorization you already have.
- Proof of the child’s income or benefits, including SSI, Social Security, or child support if applicable.
- Household income and expense records for programs that use the full household budget.
- Child-care provider information if applying for CCFAP.
- Tax records if you are checking dependent or child-credit eligibility.
If a document is missing, ask whether you can file now and submit the proof later.
Reality Checks
- One application does not cover everything. Cash, food, health, child care, taxes, and foster payments use different systems.
- Payment amounts can vary. Do not rely on a friend’s benefit amount. Ask for the written budget or authorization for your case.
- Legal custody can help and hurt different paths. A court order may unlock authority but can change foster-care or permanency options.
- Regional help can be limited. Respite and flexible caregiver funds may have waiting lists.
Common Mistakes to Avoid
- Calling every form of help a “grant.” Child-Only Reach Up is cash assistance; 3SquaresVT is food assistance; Dr. Dynasaur is health coverage; CCFAP is a child-care subsidy.
- Applying for child-only cash without telling DCF that the child is already in foster care or DCF custody.
- Finalizing guardianship before asking whether a DCF Guardianship Assistance agreement must be approved first.
- Assuming the grandparent’s income is treated the same in every program.
- Assuming legal guardianship automatically allows you to claim a tax credit.
- Ignoring written notices. A notice may contain a deadline, missing-document request, or appeal right.
Denied, Delayed, or Overwhelmed
If a benefit is denied or the amount looks wrong, ask for the written decision and the rule used. Read the notice for appeal instructions and deadlines, and call Legal Services Vermont if you need help.
While waiting, use Vermont 2-1-1 for food, housing, transportation, and local emergency resources.
Phone Scripts
DCF Economic Services
“I am a grandparent raising my grandchild. The child is not in foster care. I need to know if Child-Only Reach Up fits, what amount you would calculate, which documents you need, and whether I should also apply for 3SquaresVT or Fuel Assistance.”
DCF Family Services
“My grandchild is in DCF custody or may be placed with me. What is the current kinship foster approval process? What reimbursement could apply, what documents or home checks are required, and could Guardianship Assistance be an option later?”
Child-care agency
“I am raising my grandchild and need help paying for child care. I receive or may receive Child-Only Reach Up. Does my legal status affect the income rule? What service need, provider, documents, copayment, and approval period apply?”
Legal Services Vermont
“I am raising my grandchild and need legal authority to keep benefits, health care, or child care moving. What kind of guardianship or other order should I ask about, and could changing custody affect foster payments or Guardianship Assistance?”
Resumen en español
Los abuelos que crían nietos en Vermont pueden encontrar ayuda financiera y beneficios de varias maneras. Si el niño vive con usted y no está en foster care, pregunte primero por Child-Only Reach Up, que puede dar asistencia mensual en efectivo para el niño. Si el niño está bajo custodia de DCF, pregunte al trabajador de Family Services sobre pagos de foster care y sobre Guardianship Assistance antes de finalizar una tutela permanente.
También revise 3SquaresVT para alimentos, Dr. Dynasaur para seguro médico del niño y CCFAP para ayuda con el costo de cuidado infantil. Si usted tiene 55 años o más, pregunte a su Area Agency on Aging sobre apoyo para cuidadores de familiares, respite y ayuda con algunos costos. Si puede reclamar al niño en su declaración de impuestos, revise el crédito tributario de Vermont. Para DCF Economic Services llame al 1-800-479-6151; para Vermont Health Connect llame al 1-855-899-9600; para la Senior Helpline llame al 1-800-642-5119.
Frequently Asked Questions
Can a grandparent get Child-Only Reach Up in Vermont?
Yes, a grandparent or other qualifying non-parent caregiver may apply when the child meets Vermont's Child-Only Reach Up rules. DCF says the child generally must be under 18, not receiving SSI, not in foster care, have little or no income, and live with someone other than a legal, step, or adoptive parent. DCF makes the final eligibility decision.
Does Vermont pay grandparents for informal kinship care?
Informal kinship care by itself does not create a foster-care payment. The main state cash route to check is Child-Only Reach Up. If the child is in DCF custody, ask the Family Services worker whether foster care reimbursement is available under the current licensing rules.
Can a grandparent household get 3SquaresVT food benefits?
Yes, a grandparent household may apply for 3SquaresVT if it meets the program rules. DCF says households that include someone age 60 or older may still qualify in some cases even when gross income is above the usual limit, although resource and net-income rules can then matter.
Can my grandchild get Dr. Dynasaur health coverage?
Possibly. Dr. Dynasaur is Vermont Medicaid coverage for children and teenagers under age 19. Eligibility depends on the child's and household's circumstances. Apply through Vermont Health Connect or call 1-855-899-9600 for help.
Can Child-Only Reach Up help with child care costs?
It can make child-care help easier in some cases, but child care is not automatic. Vermont's Child Care Financial Assistance Program has separate service-need and provider rules. DCF says the income guideline is waived for legal guardians who receive Reach Up Child Only, while other program conditions still apply.
Can a grandparent claim Vermont's Child Tax Credit?
A grandparent may be able to claim the credit if the child is an eligible child on the grandparent's tax return and the other tax rules are met. For tax year 2026, Vermont lists a fully refundable credit of up to $1,000 for each eligible child age six or younger at the end of the year, with an income phaseout.
Do I need legal guardianship before applying for benefits?
Not for every benefit. Vermont's Child-Only Reach Up page does not require a court guardianship as a basic condition. But legal status can change access to other help. For example, the child-care program gives a special income-rule waiver to legal guardians receiving Child-Only Reach Up, and guardianship can give authority to receive government benefits for the child. Ask before filing court papers because foster-care and guardianship choices can affect payment options.
About This Guide
Sources: This guide uses official federal, state, local, and other high-trust nonprofit and community sources linked in the article.
Editorial note
This guide is produced under the GFS Editorial Standards using official and other high-trust sources. GFS is not affiliated with a government agency and is not a substitute for official agency guidance. Individual eligibility outcomes cannot be guaranteed.
Corrections
Despite careful verification, errors may occur. Readers may email info@grantsforseniors.org with corrections.
Disclaimer
This article is for informational purposes only and is not legal, financial, medical, tax, disability-rights, immigration, or government-agency advice. Program rules, policies, funding, and availability can change. Readers should confirm current details directly with the responsible official program before acting.
Last updated: 26 September 2026 · Next review: 26 January 2027
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