Foster families question taking placements after daycare payment shifts; DSS pledges full coverage

SIOUX FALLS, S.D. (Dakota News Now) – Recent shifts in South Dakota’s Child Care Assistance program have left some local foster families questioning whether they can afford to take in additional children.

The concern stems from a recent change in how the state calculates and pays for child care, moving the payment structure from an hourly rate to a weekly one. The restructuring caused some foster parents to worry they would be left paying up to $500 out of pocket per month to cover the remaining balance on childcare expenses.

For foster parents like Kaye Sjaarda, the financial strain is a heavy burden on what many consider a calling.

“We’re making a difference in kids’ lives, and we’re getting paid $22.85 a day to do that,” Sjaarda said. “Foster parents are not in this to make money. We’re in this because we love kids.”

Sjaarda has invested heavily in the children she welcomes into her home, supporting them through trauma and behavioral challenges. However, the prospect of absorbing unpaid childcare costs made her hesitate to expand her household.

“The thought that child care may not be fully paid for, and that being our responsibility—yeah, I would definitely think twice about taking in another person’s child and caring for them,” Sjaarda said. “And we need to be supported as well. And so that is why I’m passionate about speaking out and just asking Child Care Assistance to clearly communicate with us how that is going to be taken care of.”

In response to these concerns, South Dakota Department of Social Services (DSS) Secretary Matt Althoff clarified that the state’s support structure remains unchanged.

“Changes to the Child Care Assistance program, new methodology and new rates, have no impact on DSS’s ongoing support given to foster care families,” Althoff said in a statement. “DSS continues in its policy to pay any remaining costs associated with child care for youth in foster care.”

Althoff’s commitment indicates that child care facilities still have the authorization to bill any remaining balances directly to Child Protective Services (CPS), maintaining the practice used before the weekly rate change.

To resolve confusion and address communication gaps, Althoff plans to brief staff across both affected DSS departments so caseworkers are fully prepared to answer questions from foster families.

For foster parents like Sjaarda, clear answers are vital to keeping children safe.

“I really want to see kids supported. I want to see them safe, know that they are loved,” Sjaarda said. “And having that done by strong foster parents who are well supported is very important.”

State officials added that the program changes align with updated federal guidelines.