# Family Law (GFL)

## Title 5. Children

### Subtitle 4. Adoption Subsidy Act

#### Section 5-401

(a) In this subtitle the following words have the meanings indicated.

(b) "Administration" means the Social Services Administration of the Department.

(c) "Eligible child" means a minor as to whom:

  (1)

    (i) guardianship has been awarded to a child placement agency under Subtitle 3 or Subtitle 3A of this title; or

    (ii) consensual adoption has been ordered under Sec. 5-338 of this title; and

  (2) a determination has been made by a local department under Sec. 5-403 of this subtitle that a subsidy is necessary to ensure the child's adoption because of the child's special circumstances.

(d) "Subsidy" means:

  (1) a money payment;

  (2) medical care;

  (3) medical assistance; or

  (4) special services.

#### Section 5-402

The purpose of this subtitle is to make possible, through a public subsidy, the most appropriate adoption of each eligible child.

#### Section 5-403

The local department shall determine whether a subsidy is necessary to ensure a child's adoption because of the child's special circumstances, including:

(1) physical or mental disability;

(2) emotional disturbance;

(3) recognized high risk of physical or mental disease;

(4) age;

(5) sibling relationship; and

(6) racial or ethnic factors.

#### Section 5-406

Each local department shall establish and administer an adoption subsidy program for eligible children.

#### Section 5-407

(a) Money payments and special services under the adoption subsidy program shall be funded by:

  (1) appropriations to a local department for the maintenance of children in foster care; and

  (2) money that is made available to a local department from other sources.

(b) Medical assistance and medical care under the adoption subsidy program shall be funded by:

  (1) savings for the fiscal year by the Maryland Department of Health and the Department of Human Services that are attributable to adoptions under this subtitle; and

  (2) appropriations to the Department of Human Services for the adoption subsidy program.

(c) The Administration may reimburse the Maryland Department of Health for the cost of medical assistance and medical care directly or through a contract with the Department.

#### Section 5-408

(a) A subsidy may not be denied to an eligible child on the ground that the eligible child had a condition that was not known or discovered at the time of the adoption.

(b) An individual who has been approved by a child placement agency as an appropriate adoptive parent and who seeks to adopt an eligible child is eligible to receive a subsidy on behalf of the eligible child regardless of the individual's income or other eligibility factors.

(c) A subsidy may not be denied to a child whose adoption has been dissolved or whose adoptive parents have died if the child received an adoption subsidy during the child's prior adoption and the child continues to meet the criteria set forth in Sec. 5-403 of this subtitle.

(d) The subsidy may not be discontinued solely because the adoptive parent moves from this State with the eligible child.

(e) A subsidy may continue to be provided for an eligible child to an adult who is qualified to assume responsibility and who assumes responsibility for the care and welfare of the child upon the death or incapacitation of the child's adoptive parent.

#### Section 5-409

(a) To apply for a subsidy on behalf of an eligible child, an individual who is a prospective adoptive parent of the eligible child shall file an application for a subsidy with the local department.

(b)

  (1) The director of the local department shall append to the application evidence of inability, after all reasonable efforts, to place the eligible child, without a subsidy, with an appropriate adoptive parent because of the special circumstances.

  (2) If the director of the local department determines that the eligible child has established emotional ties with a prospective adoptive parent who is the child's foster parent, evidence of efforts to place the child with another prospective adoptive parent is not required.

#### Section 5-410

(a)

  (1) Before a final decree of adoption is passed, the local department and a prospective adoptive parent of an eligible child shall make a written agreement regarding the subsidy.

  (2) In the case of an eligible child who has special circumstances that existed before the adoption but were not detected until after the adoption, the agreement shall be made promptly after the local department approves the application for a subsidy.

(b) A subsidy may commence either at the time of the placement for adoption or at an appropriate time after the passage of the adoption decree.

(c)

  (1) The nature, amount, and duration of the subsidy shall be determined by:

    (i) the needs of the eligible child because of the eligible child's special circumstances; and

    (ii) the availability of other resources to meet the eligible child's needs.

  (2) The subsidy may be for a limited or a long period of time.

  (3) The subsidy shall be in an amount that is not more than:

    (i) the allowable amount for a child under foster family care in this State, or if placement is in another state, the allowable amount for a child under foster family care in that state, whichever is higher;

    (ii) in the case of a medically fragile child living in a treatment foster care home, $2,000 per month; or

    (iii) if the subsidy is for a special service, a reasonable fee for that service.

(d)

  (1) If, under a subsidy agreement, the subsidy does not terminate in the first year after the final decree of adoption is passed, the subsidy is subject to annual reapplication, reevaluation, and reapproval by the local department.

  (2) A subsidy agreement shall include a notice of the annual reapplication requirement.

#### Section 5-410.1

(a) If the Department makes the determinations under subsection (b) of this section, an adoptive parent involved in an independent or intercountry adoption of a child is entitled to reimbursement by the State for certain nonrecurring adoption expenses associated with the adoption.

(b) An adoptive parent is eligible for reimbursement of nonrecurring adoption expenses, if the Department determines that:

  (1) the child should not be returned to its biological parents;

  (2) the child cannot be placed with adoptive parents without providing assistance because of certain factors or conditions regarding the child, including ethnic background, age, the presence and number of siblings, or physical, mental, or emotional handicaps; and

  (3) except where it would be against the best interests of the child, previous adoption attempts have been made without assistance and were unsuccessful.

(c) Application for nonrecurring adoption expenses shall be filed with the Department:

  (1) prior to the order; and

  (2) on a form provided by the Department.

(d)

  (1) Upon approval of the application, there shall be a written agreement between the Department and the prospective adoptive parents regarding the reimbursement of nonrecurring adoption expenses.

  (2) Except as provided in paragraph (3) of this subsection, the agreement shall be signed by the adoptive parents and an agent of the Department prior to the adoption order.

  (3) The agreement is not required to be signed by the adoptive parents and an agent of the Department prior to the adoption order if the order:

    (i) was entered between January 1, 1987 and July 1, 1990; or

    (ii) was entered before January 1, 1987, but nonrecurring adoption expenses were paid after January 1, 1987.

  (4) Adoptive parents filing for reimbursement of nonrecurring adoption expenses in cases described under paragraph (3) of this subsection shall:

    (i) enter into a written agreement with the Department; and

    (ii) file all claims no later than December 14, 1990.

(e) Reimbursement for nonrecurring adoption expenses is limited to a maximum of $2,000 for reasonable and necessary actual costs that are not reimbursable from another source, including:

  (1) adoption fees;

  (2) court costs and reasonable attorney's fees;

  (3) health examinations;

  (4) transportation costs; and

  (5) food and lodging costs incurred during preplacement visits.

(f) Except in cases described under subsection (d)(3) of this section, adoptive parents shall file all claims for nonrecurring adoption expenses within 2 years after the order.

#### Section 5-411

An individual who is aggrieved by a final decision of the director of a local department that denies eligibility or reduces or terminates a subsidy in a contested case may:

(1) appeal that decision to the administrative appellate authority designated by rule or regulation; and

(2) then take any further appeal allowed by the Administrative Procedure Act.

#### Section 5-412

The Director of the Administration shall adopt regulations to carry out the provisions of this subtitle.

#### Section 5-415

This subtitle may be cited as the "Maryland Adoption Subsidy Act".

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Md. Code Ann., Fam. Law (as displayed at mgaleg.maryland.gov, October 16, 2026)