Are Adoption Assistance Payments excluded as income?
No. Once the child is adopted, adoption assistance subsidies are treated as unearned income, with the exception that any portion of the adoption subsidy that is earmarked for an excludable reimbursement (e.g., medical or dependent care expenses) shall be excluded from consideration as income, and determined on a case by case basis. Payments through the Adoption Assistance Program (AAP) are assigned to the adoptive parents, not to the child. AAP payments are considered incentive payments. [This information will be added to FSPG 63-223.3 shortly].
