Financial Help for Parents With a Special Needs Child

The cost of caring for a child with special needs can be frightening.

It costs well over $300,000, at current prices, to raise a child from the time he or she is born until the age of 18. If that child has a disability, the cost can skyrocket. On top of it, raising a child with a disability often doesn’t stop once the child turns 18.

Many parents rely on government assistance for a special needs child to help cover expenses, as well as nonprofit and community support. There are a lot of resources out there that can help ease the financial burden of raising a child with a disability, including Social Security benefits, Medicaid, insurance, grants and educational assistance.

Navigating what resources are available to help with a child with a disability and finding what you need, though, can be overwhelming.

Let’s take a look at what special needs assistance programs are available to help parents. Will these sources cover all costs? No. But they can make a difference in what the budget looks like as you guide your family into the future.

Understanding the Financial Challenges

The Centers for Disease Control reports that, in 2023, 8.56% of children between 3-17 years old born in the U.S. had a diagnosed developmental disability, a number that’s steadily risen in recent years.

A disability is any physical impairment or developmental delay that can affect mobility, hearing, vision, language, understanding, behavior, learning or physical health. A disability may be severe, or it may be mild. Even mild disabilities, though, mean extra costs.

The financial challenges of raising a child with a disability can be a shock. The U.S. Department of Agriculture estimates that 16% of a family’s income goes to raising a child. When a child has a disability, depending on its severity, that cost can double, or even triple.

For instance, the cost of raising a child who is on the autism spectrum, or has cerebral palsy, can be $1 million or more higher than raising a child without a disability, because of needed services and lost wages, according to the CDC.

Expenses associated with caring for a special needs child can include doctor and hospital visits, specialists, medication, physical therapy, equipment, and support resources. But there also may be expenses you haven’t considered until you have to find a way to pay for them – special food or clothing, transportation, in-home health care, daycare, and even lost wages or a drop in income from taking time off or leaving a job, to care for a child.

Families who live paycheck-to-paycheck are particularly hit hard by expenses related to a child’s disability. It affects not only how much money is available for bills and expenses, but also can lead to an increase in debt, both credit cards and medical debt. It can have a big impact on a parent’s ability to earn money when a parent has to take time off from work or is limited in employment or educational opportunities because they have to prioritize caring for their child.

The strain on finances makes it necessary for many families to seek government or other assistance to help pay bills related to the child’s disability as well as things like food, rent, transportation, and other benefits that can help the family stay afloat.

Government Assistance Programs

Primary government assistance programs for families with a special needs child are almost all income-related. Some are specific to disabilities, like Supplemental Security Income and Medicaid. Others, like Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP), can help with food and other necessities.

Let’s take a look at the most common government assistance programs that help families with children who have disabilities.

Supplemental Security Income (SSI)

Social Security SSI provides financial assistance for low-income families in which a child has “marked and severe functional limitations,” established by medical evidence. Some qualifying disabilities are Down syndrome, cerebral palsy, autism, intellectual disabilities and visual impairment. The formula for determining benefits is complicated, and determined by income and household size. The top federal rate in 2024 was $943, though 22 states have a higher rate. Children are eligible until they turn 18 (older if they are a dependent).

Social Security Survivor Benefits

When a parent who is eligible for Social Security dies, retires or becomes disabled, unmarried children under age 18 may be able to collect monthly Social Security survivor benefits. The amount depends on the parent’s income. A child under 18 or a disabled dependent adult child can receive up to 75% of the parent’s benefit.

Temporary Assistance for Needy Families (TANF)

TANF provides low-income parents and pregnant women a monthly grant to provide food and other care for children. The federal government issues the money to states, which disburse it as they see fit. Eligibility requirements, monthly amounts, work requirements and when, or if, those amounts are increased vary wildly. In 2024, New Hampshire, at $1,243, had the highest monthly benefit; Arkansas, at $204, had the lowest. Assistance is for any family who meets income requirements, not just those with disabled children.

Supplemental Nutrition Assistance Program (SNAP)

SNAP provides benefits for food to low-income individuals and families. The amount is based on income and household size, and there’s a limit on how long you can receive it, depending on your circumstances. The top allotment for a family of four in 2024 was $973 a month, with the family of four average $713. There is a work requirement for most recipients, but it’s waived for those caring for someone with a disability at home. Benefits are provided with an electronic benefits transfer card, similar to a debit card.

Children’s Health Insurance Program (CHIP)

CHIP provides financial assistance for families who have a disabled child and make too much money to qualify for Medicaid, but not enough to qualify for private insurance. Benefits are issued through Medicaid and differ depending on the state, but all states provide well-baby and well-child care, dental coverage, behavioral health care and vaccines. Income eligibility is based on modified adjusted gross income, with many states having other income allowances or requirements as well.

Medicaid and Medicaid Waivers

Medicaid provides health care coverage to low-income people and those with disabilities. Children with disabilities must require a certain level of care to qualify. It’s administered by states, which have different eligibility rules and covers the same type of medical-related expenses that private insurance does, like appointments, hospital services, medication and equipment.

Most states take advantage, in varying degrees, of Medicaid waivers to extend services or eligibility for children with disabilities who may not otherwise qualify, including:

• TEFRA/Katie Beckett allows Medicaid services extension to a child with a disability under Social Security rules that require placement in a hospital, nursing facility, or intermediate care facility.
• 1915 (C) Home and Community-Based Services (HCBS) Waivers offer additional services that help people with disabilities live at home and can be categorized for different disability types.
• 1115 Demonstration Waivers create state-specific programs or reform the state’s Medicaid system. Some states use them to provide home and community-based services for people with disabilities.
• State-Based, 1915(i), 1915(j), and 1915(k) programs expand access to home and community-based services, including: respite; home and vehicle modification; self-directed personal care services; personal assistance; and in-home support.

Tax Benefits

Taking advantage of tax deductions and credits helps lessen the financial impact of caring for a child with a disability.

If your unreimbursed medical expenses are more than 7.5% of your gross income, you can deduct them from your federal taxes. This includes things like medication, doctor and hospital bills, medically required food, mileage for health care visits and therapy supplies. If you do this, though, you can’t take the standard deduction, so make sure it’s financially worth it.

The Child and Dependent Care Credit allows you to reduce the taxes you owe up to $3,000 per dependent if you pay someone to care for a child while you work or look for work.

529A accounts, also known as ABLE accounts, are administrated through states and allow disabled people to save money without threatening their eligibility for need-based government help. The account-holder, their family and friends can contribute up to $15,000 a year.

VA Pensions

Veterans who get a VA pension or disability compensation may qualify for an increased monthly benefit for minor dependent children and eligible disabled adult children. VA benefits also include the Dependency and Indemnity Compensation (DIC) for survivors of a veteran who died or sustained a serious disability while serving also provides monthly payments for minor children and qualifying disabled adult children. The adult child must have become disabled before they turned 18 to qualify.

A disabled adult child may also be eligible for benefits through the VA’s Civilian Health and Medical Program, or the Department of Defense TRICARE insurance program.

Nonprofit and Community Resources

The federal government isn’t the only place to find financial help for parents of a special needs child. There are many nonprofits that offer financial help as well as support, advocacy, and resources. Some focus on a specific disability, others have a general focus.

Some of the largest nonprofits in the U.S. that support children with disabilities are:

Easterseals

Easterseals, which was created more than a century ago, provides services and support for disabled individuals and their families that includes therapy and services, including for autism; early childhood programs, and medical rehabilitation. It also offers employment programs for disabled people entering the workplace, and education and advocacy resources. It has financial support for families who can’t afford to pay for Easterseals services. Families can find out more about what Easterseals offers by contacting their local headquarters through the Easterseals website.

The Arc

The Arc is a national community-based organization that advocates for and with people who have intellectual and developmental disabilities. It has more than 600 chapters in the U.S. and helps connect people with disabilities to support and resources, including connecting families to financial help. Programs include things like dental workshops to help children with disabilities get used to going to the dentist. Parents can find a local chapter through a link on The Arc’s website.

The UnitedHealthcare Children’s Foundation

The UnitedHealthcare Children’s Foundation (UHCCF) offers medical grants to families to help pay for medical expenses not covered, or only partially covered, by commercial health insurance. Families can find out about eligibility for grants and how to apply for them on UHCCF’s website.

Local Community Resources

Communities have a variety of resources that can help families that have a child with a disability.

Your local Community Action Program is focused on ending poverty and providing help for low-income families. They also offer education services and can link you to financial help for a child with learning disabilities. Find your local CAP on the national website.

Your state’s Department of Health and Human Resources can also help you access resources. Look for it on your state government’s website.

Local churches and community nonprofits offer food and clothing pantries, transportation help and other kinds of family support. Type your community’s name and “child with disability” into your computer browser to see what’s available.

Special Needs Grants

Grants that provide financial help for a special needs child are available from many organizations. A grant is money that doesn’t have to be repaid, so they’re not always easy to get. The need criteria and income requirements vary greatly, the money is limited.

Still, a grant that means financial help for a special needs child is worth pursuing.

Some of the grants available for parents with a child with disabilities are:

Alyssa V. Phillips Foundation – Provides financial support to those affected by Cerebral Palsy so they can receive ongoing and necessary therapy or equipment not covered by insurance.

Association of Blind Citizens – Assistive Technology Fund provides money to cover 50% of the retail price of adaptive devices or software.

Aubrey Rose Foundation – Helps families with children who are living with a life-threatening medical condition.

Autism Care Today SOS Program – Supports those affected by autism who have an immediate need for treatment or support and whose safety is jeopardized without treatment.

Believe in Tomorrow  – Pays for pediatric hospital housing and respite housing.

Byron Riesch Paralysis Foundation – Provides assistance to those suffering from neurological disorders.

Different Needz Foundation – Offers special needs families a one-stop shop to buy and sell used medical and special needs equipment and adaptive toys. It also offers a grant to buy items.

Disabled Children’s Relief Fund – Provides cash grants for disabled children for assistive devices, equipment, and rehabilitative services, as well as for innovative arts and humanitarian services. Preference is given to families who do not have health insurance.

Federal Grant Wire – Lists government grants and loans, including for children with disabilities.

Financial Resources and Discounts for Students with Disabilities – Guide to financial resources, discounts and savings opportunities for students with disabilities.

First Hand Foundation – Assists children with clinically relevant, health-related needs and no financial resources to cover expenses.

Flyin Ryan Foundation – Adventure scholarships based on financial need for those with a demonstrated passion to pursue their adventure of choice.

Gia Nicole Angel Foundation – Assistance to buy a specific item or items to enhance the daily functioning of a child with special needs and his or her family.

Giving Angels Foundation – Enhances the lives of children under the age of 21 with any type of physical disability or illness.

The Jiselle Lauren Foundation – Helps any family whose child has a special need or disability achieve things that wouldn’t be possible otherwise.

Kiddie Pool – Works as a fundraiser to help families raise money for special adaptive equipment.

Laila Rose Foundation – Provides financial assistance to families of children with medical needs.

The LENN Foundation – Helps children with cerebral palsy by providing financial relief for medical needs.

Lori’s Voice – Enriches the lives of children with muscular, neurological, and other degenerative diseases.

The Maggie Welby Foundation – provides grants to help with medical bills, to modify your vehicle, or just pursue an opportunity that otherwise would not be available to your child.

McLindon Family Foundation – Provides adaptive bikes to children with special needs.

The Federation for Children with Special Needs – Provides support, resources, and assistance.

The Oracle Health Foundation – Provides funding for items to improve the quality of life for individuals with disabilities not otherwise covered by insurance.

The Parker Lee Project – Helps cover the cost of equipment and medical treatment not covered by insurance. Parker Lee also provides excellent educational help and support to parents of disabled children.

Partnership for Prescription Assistance – Helps qualifying patients without prescription drug coverage get the medication they need through the program that is right for them. Many will get their medication for free or nearly free.

United Spinal Association – Has a list of grants for children with spinal conditions and other disabilities.

Variety Children’s Charity – Helps kids gain mobility, confidence, freedom, independence, and the chance to join in the life of their community by providing funding for walkers, wheelchairs, specially-designed adaptive bikes, strollers, prosthetic limbs and other devices to families with the most need.

Wheelchairs 4 Kids – Provides the highest quality wheelchairs for children who need them. In addition, Wheelchairs for Kids can help with grant money for wheelchair ramps to home modifications to wheelchair accessible vehicles.

Special Needs Scholarships

A fair amount of financial aid via scholarships and awards is directed toward students with special needs and learning disabilities. They can be found with a simple Internet search. Here are a few, ordered by disability.

Attention Deficit Disorder

The Fred J. Epstein Youth Achievement Award is an annual award of $1,000 that recognizes the strengths and accomplishments of young people with learning disabilities and ADHD. It is given to a student 19 or younger who has demonstrated initiative, talent and determination resulting in a notable accomplishment in any field.

The Michael Yasick ADHD Scholarship by Shire is a $2,000 scholarship to students in the U.S. who have been diagnosed with ADHD and are planning to pursue higher education.

Autism

The Organization for Autism Research (OAR) offers two nonrenewable $3,000 scholarships for students on the autism spectrum who are full-time students working toward certification or accreditation in a particular field. A third scholarship goes to autistic students of color.

A number of other autism scholarships are linked here.

Learning and Cognitive Disabilities

National Center for Learning Disabilities (NCLD) Scholarships – The NCLD offers four annual scholarships and awards. The $10,000 Anne Ford Scholarship ($2,500 per year over four years)  goes to a graduating high school senior who will attend a four-year bachelor’s degree program. The $5,000 Allegra Ford Thomas Scholarship ($2,500 over two years) goes to a graduating high school senior who will enroll in a two-year community college, a vocational or technical training program, or a specialized program for students with a learning disability or ADHD. Recipients must demonstrate financial need and be involved in school and community activities.

Landmark College Scholarships – Landmark College is one of two colleges in the country specifically for students with learning disabilities. Scholarships ranging from $1,500 to $34,000 are available for students and are based on financial aid and merit.

Visual Difficulties

The National Federation of the Blind and the American Council of the Blind offer scholarships. The Lighthouse Guild offers up to 20 merit-based scholarships awarded each year to legally blind high school students getting ready to attend college, as well as an annual scholarship to at least one qualifying graduate student.

A list with links to other scholarships available to the blind can be found here.

General Disabilities

Microsoft Disability Scholarship – Awarded to promising high school students with financial need who plan to attend a vocational or academic college. This scholarship provides $5,000 a year up to a total of $20,000 and is designed for students who seek a career in the technology industry.

Housing Assistance for Families With Disabled Children

Given the reality that rent or a mortgage can be a significant monthly cost, it’s good to know what housing aid is available to families with disabled children. The help comes in the form of housing grants or aid to modify the home for the disability.

Housing grants through the Federal Housing Administration (FHA) are available for families with disabled children. This is important because many caretakers sacrifice work hours and income to care for their child.

The one proviso: The federal government only gives grants to families who are buying their first home. Aid to those who have already bought a home usually comes in the form of state agencies or nonprofit grants.

Home modifications to take care of the disabled child are tax deductible, provided the modifications are medically necessary adaptations. A doctor should write a note for each modification needed, and the note should be kept in a safe place. This provides proof of the need for the deduction in case the IRS asks.

Housing Grants

Federal help comes in three forms. The Section 811 Supportive Housing for Persons with Disabilities program provides financial advances and rental assistance contracts to low-income households with at least one family member with a disability. The Project Rental Assistance program helps low-income families with at least one adult member with a disability.

Section 8 Rental Housing Choice Vouchers help elderly and disabled people afford safe and decent private-market housing, administered by local public housing agencies (PHAs) and paid directly to the landlord.

The FHA has a webpage with state down payment grants and links.

Home Modifications

Government programs provide help for specific disabilities, especially for children with cerebral palsy or autism. Adaptations for a child with cerebral palsy include widening hallways or doors, installing hardwood floors, or buying stair lifts.

For those with autism, adaptations may include exchanging fluorescent lights for LEDs, upgrading blinds or shades to limit light, installing soundproof panels and curtains, and even installing surveillance cameras to ease anxiety about intrusion.

Credit Counseling

Raising a child with special needs can mean years of challenges that can have a huge impact on your financial situation, but you don’t have to do it alone. Take advantage of the programs mentioned above that provide financial help for parents of a special needs child and be on the lookout for others.

A nonprofit credit counseling agency can help you get over the budgeting hurdles as you take care of a child or adult with special needs. The right credit counseling will tailor its financial advice to your specific resources and needs, and vastly improve your situation.

If your finances are already suffering, a nonprofit credit counseling agency can help you get back on the fiscal track and stay there.