Foster Youth Housing Opportunity Act

#7432 | HR Congress #119

Policy Area: Families
Subjects:

Last Action: Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (2/9/2026)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Foster Youth Housing Opportunity Act" aims to enhance access to housing for youth who have experienced foster care by amending section 477 of the Social Security Act. The key provisions include:

1. **Expanded Housing Access**: It emphasizes the need for improved access to housing for youth aged 18 and older who have aged out of the foster care system.

2. **Supportive Services**: States are allowed to use federal funds to provide supportive services that assist eligible youth in obtaining or maintaining suitable housing. These services may include financial literacy education, counseling on rental agreements, and assistance with moving costs.

3. **Coordination Between Agencies**: The Act mandates the development of joint guidance by the Secretary of Health and Human Services and the Secretary of Housing and Urban Development to improve collaboration between public child welfare agencies and housing authorities. This guidance aims to clarify federal policies and best practices to facilitate access to housing for current and former foster youth.

4. **Reporting Requirements**: A report is required within three years of enactment, detailing the number of eligible youth receiving federal housing assistance, their housing stability outcomes, and recommendations for further improving agency coordination.

Overall, this legislation seeks to provide critical support and resources to foster youth as they transition to independent living, reducing barriers to stable housing and improving their long-term outcomes.

Possible Impacts

The "Foster Youth Housing Opportunity Act" could affect people in several ways:

1. **Increased Housing Stability for Foster Youth**: By improving access to housing for youth who have experienced foster care, the legislation provides a safety net for those aging out of the foster care system. This may lead to reduced homelessness and increased stability for these young adults, allowing them to pursue education and employment opportunities without the burden of housing insecurity.

2. **Supportive Services for Life Skills Development**: The Act allows states to provide supportive services, such as financial literacy, rental contract counseling, and assistance with moving costs. This could empower eligible youth with the skills and resources they need to manage their housing effectively, ultimately fostering independence and self-sufficiency.

3. **Enhanced Coordination Between Agencies**: The requirement for joint guidance from the Secretary of Health and Human Services and the Secretary of Housing and Urban Development aims to improve alignment and coordination between public child welfare agencies and housing authorities. This could result in more streamlined access to resources and assistance, making it easier for foster youth to navigate complex systems and obtain necessary support for housing and services.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7432 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7432

To amend section 477 of the Social Security Act to improve coordination 
with Federal housing assistance programs for youth who have experienced 
                              foster care.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 2026

  Mr. LaHood (for himself and Ms. Moore of Wisconsin) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Financial Services, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend section 477 of the Social Security Act to improve coordination 
with Federal housing assistance programs for youth who have experienced 
                              foster care.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foster Youth Housing Opportunity 
Act''.

SEC. 2. IMPROVING ACCESS TO HOUSING FOR FOSTER YOUTH.

    Section 477 of the Social Security Act (42 U.S.C. 677) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``and preventive'' and inserting 
                ``preventive''; and
                    (B) by inserting ``, and access to housing for 
                youth age 18 or older'' before the semicolon;
            (2) in subsection (a)(4), by inserting ``current and'' 
        before ``former'';
            (3) in subsection (b)(2)(D), by inserting ``, including by 
        collaborating with public housing agencies that administer 
        Federal housing programs serving foster youth under section 
        8(x)(2)(B) of the United States Housing Act of 1937 and receive 
        funding to partner with public child welfare agencies to serve 
        youth who have experienced foster care'' before the period;
            (4) in subsection (b)(3)(B), by striking ``not more than 30 
        percent of the amounts paid to the State from its allotment 
        under subsection (c) for a fiscal year'' and inserting ``an 
        average of not more than 30 percent of the amounts paid to the 
        State from its allotment under subsection (c) for the 5 fiscal 
        years covered by the application submitted by the State 
        pursuant to paragraph (1) of this subsection'';
            (5) in subsection (d), by adding at the end the following:
            ``(6) Housing supportive services.--
                    ``(A) In general.--A State may use amounts from its 
                allotment under subsection (c) to provide supportive 
                services to assist eligible youth who experienced 
                foster care to obtain or retain suitable housing.
                    ``(B) Definitions.--
                            ``(i) Eligible youth.--In this subsection, 
                        the term `eligible youth' means an individual 
                        who receives assistance provided under section 
                        8(x) of the United States Housing Act of 1937.
                            ``(ii) Supportive services.--The term 
                        `supportive services' may include--
                                    ``(I) basic life skills information 
                                and counseling on financial literacy, 
                                use of credit, and money management;
                                    ``(II) counseling on rental lease 
                                contracts and assistance with rental 
                                insurance; and
                                    ``(III) assistance with security 
                                deposits, utility connection fees, 
                                moving costs, and other fees associated 
                                with establishing tenancy.
                    ``(C) Exception.--Expenditures in accordance with 
                this paragraph shall not be considered expenditures for 
                room and board for purposes of subsection (b)(3)(B).
                    ``(D) Aligning age eligibility.--Notwithstanding 
                subsection (b)(3)(A)(ii), a State may use funds from 
                its allotment under subsection (c) to provide 
                supportive services to eligible youth who have not 
                attained 26 years of age for the purpose of supporting 
                continued access to housing.''; and
            (6) in subsection (g)(1), by inserting ``access to 
        housing,'' before ``and personal''.

SEC. 3. JOINT AGENCY GUIDANCE.

    (a) In General.--Within 1 year after the date of the enactment of 
this Act, the Secretary of Health and Human Services and the Secretary 
of Housing and Urban Development, shall develop and issue joint 
guidance to State public child welfare agencies and public housing 
authorities to improve alignment and coordination of housing supportive 
services provided under section 477 of the Social Security Act and 
housing assistance provided under section 8(x) of the United States 
Housing Act of 1937.
    (b) Contents.--The joint guidance shall include the following:
            (1) Clarification and alignment of Federal policies to 
        improve access to housing for youth who have experienced foster 
        care, including youth who are in independent living 
        arrangements while in extended foster care.
            (2) Guidance on State use of funds provided under section 
        477 of the Social Security Act for supportive services (as 
        defined in subsection (d)(6) of such section) to improve access 
        to housing programs administered by the Department of Housing 
        and Urban Development.
            (3) Best practices for building partnerships between public 
        child welfare agencies and public housing authorities, 
        including ways to improve access to the supportive services.
            (4) Additional information the Secretaries deem necessary 
        to effectively coordinate Federal programs serving current and 
        former foster youth.
    (c) Production.--The Secretary of Health and Human Services shall 
designate an official of the Department of Health and Human Services to 
lead development of the joint guidance in collaboration with the 
Department of Housing and Urban Development.

SEC. 4. REPORT TO CONGRESS.

    Within 3 years after the date of the enactment of this Act, the 
Secretary of Health and Human Services, in consultation with the 
Secretary of Housing and Urban Development shall submit to the 
Committee on Ways and Means and the Committee on Financial Services of 
the House of Representatives, and the Committee on Finance and the 
Committee on Banking, Housing, and Urban Affairs of the Senate a report 
that sets forth--
            (1) aggregate data on the number of eligible youth who have 
        experienced foster care who are receiving Federal housing 
        assistance;
            (2) a description of the outcomes for the youth, including 
        the extent to which youth are able to access stable housing and 
        rates of homelessness;
            (3) the findings from any evaluations of State programs 
        conducted pursuant to section 477(g)(1) of the Social Security 
        Act; and
            (4) statutory recommendations for improving coordination 
        between public child welfare agencies and Federal housing 
        programs.

SEC. 5. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
the date that is 1 year after the date of the enactment of this Act.
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