Preventing Homelessness: Federal and Local Support for Former Foster Youth

The Scale of the Problem

Every year in the United States, nearly 20,000 young people age out of the foster care system at 18 or 21. Research has found that up to 46% of them experience homelessness by age 26, and roughly 20% become homeless the moment they leave care. Surveys of the general homeless population consistently find that half of respondents spent time in foster care as children.

For former foster youth, the transition to independent adulthood often happens without a family safety net. A lost job, a roommate who moves out, or a medical bill can be enough to trigger homelessness for a young person who has no relatives to fall back on.

The Foster Youth to Independence (FYI) Voucher Program

The federal Foster Youth to Independence (FYI) voucher program, administered by the U.S. Department of Housing and Urban Development (HUD), is the most direct tool for preventing homelessness among this population. FYI was launched during the Trump administration to supplement the longer-standing Family Unification Program by sending additional Housing Choice Vouchers to youth aging out of foster care who are at risk of homelessness.

As of October 2023, FYI had provided vouchers to 4,853 eligible households. The program operates on what is, in federal terms, a modest budget: $15.3 million out of HUD's $72 billion budget for fiscal year 2023. Despite the small line item, FYI gives recipients a stable apartment subsidy during the critical transition between foster care and stable adulthood.

How FYI Works

FYI vouchers are requested by a local Public Housing Authority (PHA) in partnership with a state or tribal Public Child Welfare Agency (PCWA). A young person qualifies if they are between 18 and 24 years old, have left or will soon leave foster care, and are either homeless or at risk of homelessness. The voucher pays a portion of rent directly to a landlord, similar to the standard Housing Choice Voucher program.

FYI also funds up to 36 months of supportive services, so the housing subsidy is paired with case management, job training, and counseling.

Local and Community Initiatives

City and nonprofit programs fill in around the federal voucher.

In Oakland, California, the Keep Oakland Housed Initiative uses a points-based prioritization system to identify residents most at risk of homelessness, including youth exiting foster care, and delivers $5,400 to $8,150 in emergency financial assistance paired with case management. Since 2018, the initiative has distributed aid to more than 8,500 people, with 92% still housed six months later.

In Los Angeles, the RightWay Foundation's Emergency Housing Initiative provides up to two months of gap housing for former foster and re-entry youth while connecting them to longer-term supportive housing, therapy, and employment services.

Gaps That Remain

Advocates argue that FYI is under-scaled relative to need: the 4,853 vouchers issued so far cover only a fraction of the 20,000 young people aging out of care each year. Bipartisan proposals on Capitol Hill have called for expanding FYI, converting short-term vouchers to longer tenancies, and funding wraparound services at higher levels. State-level efforts in California, New York, and Washington have also pushed to extend foster care to 21 or 23 and guarantee housing subsidies during that extension.

For young people aging out now, the practical starting point is the local Public Housing Authority and the state's foster care transition coordinator, who can connect them to the voucher pipeline and to local nonprofit supports.