The program, which is funded through a federal block grant, provides cash to low-income families for a maximum of 60 months over the course of a lifetime. Many kinship caregivers, especially grandparents living on fixed incomes, rely on it to make ends meet.
Shannon Moody, chief policy and strategy officer for Kentucky Youth Advocates, said she is concerned the reduced payments will create hardship and distress for families and may result in more kids ending up in foster care.
"We've got kinship families who are in a situation that they made a decision based on what was best for their family, thinking that they were going to receive a certain level of financial support," Moody explained.
About 42% of kinship families in Kentucky receive support from the program. The number of participating families increased from around 10,000 in 2023 to more than 15,000 in 2025. Gov. Andy Beshear said the cuts were in part due to strain on finances caused by an increase in the number of children entering foster care and the severity of their needs.
Families should call 855-306-8959 or visit their local Department of Community-Based Services office to apply for other support if eligible.
Moody added that many families use the money to purchase diapers, formula, and clothes, and pay for medical expenses and school supplies.
"We anticipate this being a hit to our families, to the household budget, which, coming in November, is a tough time to see that happen with the holidays coming up," Moody observed.
About 19% of Kentucky children lived in poverty last year, according to the latest data from the American Community Survey, released by the U.S. Census Bureau.
This story is based on original reporting by Sarah Ladd for the Kentucky Lantern.