Families with special needs children face unique circumstances. Finding the right resources can be challenging when your child has a physical- or learning disability. The medical and care costs can be astronomical when your child needs specialized financial resources, health care, and skills. While finding financial help may seem daunting, the good news is that several government and private assistance programs are available to help make ends meet.
Government programs for children with disabilities
The federal government offers a variety of financial assistance programs to help families with special needs children. While these programs are federally-funded, they typically are administered by the state you live in. Common forms of financial aid include:
Supplemental Security Income (SSI)
Your special needs child may receive monthly cash benefits through the SSI program. A child who is under 18 years old may be eligible for social security benefits if they have a medical condition or a combination of conditions that meet the Social Security's definition of a disability. Resource and income limits apply.
While the federal government funds social security benefit payments, some states supplement SSI payments. California offers a state supplementary payment (SSP) program that the Social Security Administration also administers. Some states, like Colorado, administer their own supplemental programs, like the Children's Extensive Support Waiver (CES), which provides additional benefits to children with disabilities.
Medicaid
Medicaid is a public health insurance plan for people with lower income or disabilities. Medicaid is supported by federal and state governments. Every state runs its version of Medicaid, so you may have different criteria to meet to qualify.
The Children's Health Insurance Program (CHIP) offers health coverage to families with a disabled child who make too much money to qualify for Medicaid yet not enough to pay for private health insurance.
Supplemental nutrition assistance program
Once known as food stamps, today's SNAP programs provide money for food for low-income families. However, a special needs child may qualify for SNAP if they receive federal disability payments under SSI.
Temporary assistance for need families (TANF)
The TANF program offers monthly financial assistance to low income parents. While the TANF program doesn't specifically make payments to disabled children, it can be a helpful financial support to families who qualify. TANF programs are federally funded but distributed through each state.
Early intervention programs
Early intervention programs offer services and support to young children with disabilities or developmental delays. Children gain access to physical therapy, speech therapy and other treatments which can help them overcome learning or developmental challenges when they are younger. Parents can seek help by contacting their state's early intervention program.
Financial support accounts
Beyond federal and state programs, parents or legal guardians may establish other accounts that provide financial assistance to children with special needs. Special needs trusts and ABLE accounts are commonly used to support people over the long-term.
ABLE accounts
Under the Achieving a Better Life Experience Act, or ABLE, an adult may establish a tax-free savings account for an eligible disabled child. As a benefit of an ABLE account, any amounts under $100,000 don't count toward a child's resources by the Social Security Administration. This way, funds may be put aside for the individual for future qualified disability expenses up to $100,000 without affecting the child's ability to collect SSI. The individual must collect SSI on a disability that began before age 26. Qualified expenses include medical treatment, ongoing and necessary therapy, assistive technology, housing and basic living expenses.
Special Needs Trust
A Special Needs Trust (SNT) is a legal arrangement whereby assets are held in an account and used to support a disabled child. Since you hold the funds in trust, the money doesn't affect your child's income or resource eligibility for government benefits.
Money held in trust should supplement your child's government benefits, not replace them. As long as you don't use trust fund money for expenses your child is already receiving financial assistance with, SNT funds may cover a variety of expenses, including education, transportation, medical bills, and professional services.
Non-Profit financial resources
Some nonprofits offer financial assistance through grants to help alleviate the cost of caring for a child with special needs.
- Wheelchairs 4 Kids helps kids gain mobility through donations of wheelchairs and medical equipment. The program also offers home and vehicle modifications for disabled children. Contact the Programs department to begin the application process.
- Autism Care Today grants help provide safety and protective equipment, behavioral testing and speech therapy, and social skills learning. Grant assistance is offered to families throughout the United States.
- Oracle Health Foundation provides financial relief to parents of children with disabilities who cannot afford medical expenses, equipment, pediatric hospital housing, or vehicle modification costs. Children must be 18 years or younger and may submit a maximum of three grant requests during their lifetime. Grants are available to children receiving care within the United States or Canada; however, you can speak with a caseworker at Oracle about eligibility if your child gets medical care in another country.
- Bright Steps Forward offers financial support grants to offset the costs of occupational, speech and physical therapy services for children with neurological or developmental disorders. Grants are limited to children residing in Palm Beach, Broward and Miami-Dade County.
- Freedom Program provides wheelchairs, adaptive bicycles and tricycles, specialized walkers and disability equipment. Contact your local Variety chapter for eligibility requirements and areas served.
- My Gym Foundation helps special needs children get the medical equipment or services they need. Parents across the country may apply for up to $500 in financial assistance.
- Tyler Schrenk Foundation offers an assistive technology fund to enable recipients to live more independently. Through this fund, the organization offers grants typically covering $1,000 of assistive devices, such as lights, CPUs, heating or cooling devices, tables or breathing machines.
Parent education and training services
Some organizations offer valuable parent education, support and service resources to families with disabled children. Some organizations may be state-specific, such as the Federation for Children with Special Needs, which provides referral services, training, and emotional support to parents. The MassMutual Special Care program offers access to educational and financial assistance to help families devise longer-term economic plans for a special needs child.
Tax credits
You won't find specific tax credits for parents of a disabled child; other tax benefits could offer some relief. For example, if you claim the Earned Income Tax Credit (EITC) on your return, children with permanent or total disabilities qualify regardless of age. So you may be able to claim a disabled adult child on your return.
You may also claim the child and dependent care credit for a disabled child, even if they are 13 years or older.
Children with disabilities have unique needs
You want to ensure you get the best care possible when you have a special needs child. Yet, wading through the red tape of financial assistance and government programs can get confusing. If you are willing to invest time and energy, you can find government grants and programs for children with disabilities to help your special needs child.