The academic achievement places children on a positive trajectory for their lifespan. The aim of this study was to examine the academic trajectories of children in out‐of‐home care (OOCH) and whether kinship care has a protective effect relative to nonkin foster care. The sample analyzed for this study consists of 519,306 racially diverse youth in North Carolina schools 8 to 11 years old in the school year 2009–2010 (e.g., 27% African American, 12% Latinx, 53% White). Four longitudinal administrative data sources were merged to create this unique sample. Multilevel modeling revealed no difference between formal and non‐OOHC, but showed differences between nonkin foster, informal, and non‐OOHC. Children’s academic performance who reside in formal kinship care is similar to children in non‐OOHC.