In late September 2025, a Kentucky judge dismissed a high-profile lawsuit that centered on funding for kinship caregivers—the relatives or close family friends who step in to care for children removed from unsafe homes. The case, covered by the Associated Press, highlights an ongoing struggle across the United States: how to ensure that family-based caregivers receive adequate support when children cannot remain with their parents.
This development not only affects Kentucky families but also raises broader questions about the intersection of child welfare policy, legislative funding, and judicial oversight. For attorneys and families in Tennessee and beyond, the ruling serves as a cautionary tale about the limits of legal remedies when statutes are not fully funded.
The Background: Kinship Care in the U.S.
Kinship care refers to situations where children are placed with relatives or close family friends instead of entering traditional foster care. Research consistently shows that children fare better emotionally and academically when they remain with kin. According to Child Welfare Information Gateway, kinship placements help preserve cultural identity, family bonds, and continuity of care.
Recognizing these benefits, states have increasingly sought to expand financial assistance for kinship caregivers. Federal law also supports this trend. The Family First Prevention Services Act of 2018 encouraged more funding for relative caregivers and family-based placements. However, state implementation has often lagged behind statutory promises.
In 2024, Kentucky passed a law requiring kinship caregivers to receive foster care payments. On paper, this represented a major step forward for families stepping up to raise children when parents could not. In practice, however, the state failed to appropriate specific funds to cover the program.
The Lawsuit: Auditor vs. Governor
The Kentucky state auditor filed suit against Governor Andy Beshear, arguing that the executive branch was obligated to implement the kinship caregiver law regardless of whether funds were appropriated by the legislature. The lawsuit framed the issue as a matter of statutory compliance and fairness to families.
But the judge dismissed the case, ruling that the auditor had not exhausted administrative remedies. In plain terms, this means the court believed the dispute needed to be addressed within existing executive or administrative processes before judicial intervention was appropriate. This doctrine of “administrative exhaustion” is a common legal barrier in cases involving disputes between government branches or agencies.
Key Legal and Policy Implications
1. Statutory Rights vs. Funding Realities
This case illustrates a fundamental problem in public policy: passing a law without attaching adequate funding mechanisms. While the statute guaranteed kinship caregivers the right to payments, the lack of appropriations rendered that right unenforceable in practice. Courts are often hesitant to order governments to spend money that has not been explicitly budgeted by the legislature.
2. Judicial Restraint
By dismissing the lawsuit, the court reinforced the principle that judges are limited in their ability to compel state governments to allocate funds. This is not unique to Kentucky. Across the U.S., courts generally avoid dictating budgetary priorities, leaving families caught between legislative promises and fiscal realities.
3. Impact on Families
The dismissal leaves many Kentucky kinship families in a precarious position. Without state financial support, relatives caring for children may struggle to provide stability. Studies by the Annie E. Casey Foundation show that kinship caregivers are often grandparents on fixed incomes, making financial assistance essential for meeting children’s needs.
4. Advocacy and Legislative Strategy
For advocates and lawmakers, the case underscores the importance of pairing new family law protections with dedicated funding streams. Otherwise, statutes risk becoming symbolic gestures rather than enforceable rights.
Broader Trends in Family Law
The Kentucky situation mirrors a national debate about the adequacy of support for kinship and foster families. States like Virginia and Illinois have recently made changes to family law statutes that affect custody, support, and caregiving arrangements. These reforms demonstrate that family law is constantly evolving and that courts, legislatures, and agencies must work together to balance legal rights with fiscal responsibilities.
Takeaways for Families and Practitioners
- Check Funding Mechanisms – When new laws are passed, families and their attorneys should verify whether appropriations or administrative rules exist to make those laws enforceable.
- Consider Administrative Remedies First – As seen in this case, courts often require exhaustion of administrative processes before entertaining lawsuits.
- Stay Informed – Family law is highly dynamic. Attorneys must keep abreast of state and federal developments, especially in areas like kinship care, child custody, and support.
Protecting Your Family’s Rights Starts with the Right Legal Guidance
The dismissal of the Kentucky kinship caregiver lawsuit reveals the complexity of implementing family law reforms. While statutes may aim to protect children and families, without adequate funding and enforcement mechanisms, those protections can remain out of reach.
For families in Tennessee navigating custody, child support, or kinship care issues, it is essential to work with experienced legal counsel who understands both the statutory framework and the practical realities of implementation. Contact our Middle Tennessee Family Law Attorneys to discuss your case and explore the legal options available to protect your family’s future.
