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The Child Care Fund Unit provides financial reimbursement to counties and tribes for community-based programming for child welfare and juvenile justice youth, and placement costs for youth involved in juvenile justice cases. The annual budget of approximately $360 million is shared between the State, 83 counties and participating Native American Indian Tribes. The cost is paid 100% initially by the county/tribe for foster care, institutional care, independent living, and In-Home Care programming and reimbursed by the state at 50%, for eligible costs.

In-Home Care programs are innovative and creative community-based programs that are developed locally as an alternative to out-of-home placement. These programs are approved annually by the MDHHS Child Care Fund Fiscal Unit and Policy Office based on program and youth eligibility. Common examples of In-Home Care programs are: Intensive Probation, Counseling, Assessments, Wraparound, Truancy Intervention, Drug Court, Non-Scheduled Payments, and Family Reunification. In-Home Care programs are utilized by youth and families in the community to prevent out-of-home placement or while the youth is in placement to reduce the overall time spent out-of-home.

Effective October 2019 (Fiscal Year 2020), the State of Michigan pays 100% of child welfare case placement costs, and the county then reimburses the state 50%.