I want to be my Dad's caregiver. Will the state pay me instead of an outsider?

No they won't pay you, but the agency that provides the service may be glad to hire you for this case. Look into that.
The program is called Medicaid Waiver. Dad would have to be eligible for Medicaid Waiver in home care.

The first question is, would that state pay anybody? Is he financially and medically qualified to receive benefits? This would typically be the federal Medicaid program, administered by states.

Many states do allow the payments to go to family members. The way out state does it is the send the family member to the agency used by the county and have all payments, taxes, etc. handled through that agency.

When they do this, the pay is for the amount of care they determine ... not the full amount of care a family member typically provides.

I believe that VA is among the states that allow compensation of relatives.

Let us know how this works out for you. It is a VERY common question on this site, as you can imagine, and we learn from each other!

This is what I found on the AARP website.

"Some states have programs that help people pay for the caregiver of their choice, and in certain circumstances that can be a family member. These programs — called, variously, "consumer-directed," "participant-directed," "cash and counseling" or other titles — differ enormously depending on where you live.

Most have income and other eligibility requirements that the care recipient must meet, and strict rules often apply as to who can be paid for the caregiving.

For information about what's available in your state, contact your local Medicaid or aging services department or go to the National Resource Center for Participant-Directed Services.

But be aware that there are waiting lists for these programs and that states have been cutting back on them because of budgetary pressures."

Shanelle, a majority of grown children do not get paid for caring for a parent. Now the parent can pay the grown child from private funds, but you would need to draw up an employment agreement, and be responsible for payroll taxes or estimated quarterly income taxes. If your family member has long-term care insurance, it may cover some home care.