Fostering the Future Act
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The Fostering the Future Act would expand the John H. Chafee Foster Care Program for Successful Transition to Adulthood in several ways: lowering the age of eligibility, raising the Education and Training Voucher cap from $5,000 to $12,000, allowing Chafee funds to cover housing support services, and requiring federal agencies to better coordinate housing and child welfare programs.
Foster youth face disproportionate rates of homelessness and educational setbacks when they age out of the system. The bill would give states new tools and flexibility to address both challenges through a single federal program.
What this bill would do
What it would do
The bill would amend Section 477 of the Social Security Act — the statutory home of the Chafee program — in multiple ways. It would lower the age at which youth become eligible for program services from 16 to 14, extend maximum Education and Training Voucher (ETV) participation from five to six years for youth in remedial education, and raise the per-youth ETV cap from $5,000 to $12,000. It would expand allowable ETV costs to cover apprenticeships, GED preparation, remedial education, and short-term workforce training programs. States would be required to make reasonable outreach efforts to ensure eligible youth know about ETVs and to offer a simplified, electronically accessible application. The bill would also allow Chafee funds to pay for housing supportive services — including financial counseling, lease assistance, and help with security deposits — for youth up to age 26 who receive Section 8 Family Unification Program housing assistance.
Beyond direct services, the bill would require HHS and HUD to jointly issue guidance within one year on coordinating housing and child welfare programs, and require HHS to report to Congress within three years on outcomes for foster youth receiving federal housing assistance. It would add legal counseling access to the program's purposes and require states to certify that their case-planning processes address legal issues affecting foster youth's housing, education, and employment.
Key provisions
- 1Would lower the Chafee program's minimum eligibility age from 16 to 14 and extend maximum ETV participation to 6 years for youth in remedial education.
- 2Would raise the maximum Education and Training Voucher amount from $5,000 to $12,000 per youth, and add a grace period allowing continued participation in certain circumstances.
- 3Would require states to actively inform eligible youth about ETV benefits and to provide a simplified, electronically accessible standard application form.
- 4Would allow Chafee funds to pay for housing supportive services — including financial counseling, lease assistance, and security deposit help — for foster youth up to age 26 who receive Section 8 Family Unification Program housing assistance.
- 5Would require HHS and HUD to jointly issue guidance within one year to state child welfare agencies and public housing authorities on coordinating housing supportive services.
- 6Would require HHS, consulting with HUD, to report to Congress within three years on foster youth receiving federal housing assistance, including housing stability outcomes and homelessness rates.
- 7Would add legal counseling access to Chafee program purposes and require states to certify that case-planning processes address legal issues affecting foster youth's housing, education, and family connections.
Who would be affected
Current and former foster youth aged 14 and older — particularly those aging out of or recently exiting care — who are the direct beneficiaries of expanded ETV funding, housing support services, and legal access. State public child welfare agencies and public housing authorities that administer the Chafee program and Section 8 Family Unification assistance would face new coordination and certification requirements. Expectant and parenting foster youth would also gain access to tailored case management and home visiting referrals.
Why it matters
Youth who age out of foster care face elevated risks of homelessness, unemployment, and interrupted education. Tripling the ETV cap and extending eligibility to age 14 could meaningfully expand educational pathways for thousands of young people annually. Allowing Chafee dollars to fund housing support services and requiring HHS-HUD coordination addresses a gap between two federal systems that currently serve the same population without consistent collaboration.
What would change
Changes to existing law
Amends Section 477 of the Social Security Act (42 U.S.C. 677) — John H. Chafee Foster Care Program for Successful Transition to Adulthood
Lowers eligibility age to 14, raises ETV cap to $12,000, expands allowable costs, permits housing supportive services for youth up to 26, adds legal counseling, and updates program purposes.
Agencies directed to act
Effective dates
- General effective date for the Act and its amendments
- Joint HHS-HUD guidance on housing coordination must be issued
- HHS guidance on updated Chafee program purposes must be issued
- HHS report to Congress on foster youth housing outcomes due
- Delayed compliance for states requiring new legislation for certain amendments
Funding and costs
Congressional Budget Office estimate
CBO estimates that H.R. 7432 (Foster Youth Housing Opportunity Act) would have no effect on direct spending or revenues, with administrative costs of less than $500,000 over the 2026–2031 period, subject to appropriations.
CBO's May 6, 2026 estimate covers H.R. 7432 alongside five related foster-care bills ordered reported by the House Committee on Ways and Means. For H.R. 7432 specifically, CBO finds no effect on direct (mandatory) spending or revenues — and thus no effect on the deficit — over the 2026–2036 scoring window, because the bill does not increase Chafee program funding. The only projected cost is less than $500,000 in discretionary spending (subject to future appropriations) over 2026–2031 for administrative and reporting activities, many of which HHS is already implementing under an executive order. CBO identified no intergovernmental or private-sector mandates in the bill.
How implementation would work
HHS would develop model guidance for states on the new ETV grace-period provision, in consultation with youth who have experienced foster care. Within one year of enactment, HHS and HUD must jointly issue guidance to state child welfare agencies and public housing authorities on aligning housing supportive services. HHS must also issue separate guidance within one year on updated Chafee program purposes. Within three years, HHS — consulting with HUD — must submit a report to four congressional committees covering aggregate data on foster youth receiving federal housing assistance, housing-stability outcomes, homelessness rates, state program evaluations, and coordination recommendations. States that require new legislation to meet certain amendments may delay compliance until the first calendar quarter after their legislature's next regular session.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Finance.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill expands states' permissible uses of federal funds under the John H. Chafee Foster Care Program for Successful Transition to Adulthood (Chafee program) to include supportive housing services.
The Chafee program is administered by the Department of Health and Human Services (HHS) Children's Bureau and provides funding to support youth and young adults who are in, or were formerly in, foster care with their transition to adulthood. The program is funded through formula grants awarded to child welfare agencies in states, certain territories, and participating tribes.
The bill allows states to use such funds to provide supportive services (e.g., financial counseling) for youth up to the age of 26 who are seeking to obtain or retain housing and who have experienced foster care and receive assistance under the Department of Housing and Urban Development (HUD) Section 8 Family Unification Program.
Additionally, HHS and HUD must jointly develop and issue guidance to state public child welfare agencies and public housing authorities to improve alignment and coordination of housing supportive services.
HHS, in consultation with HUD, also must report information about foster youth who are receiving federal housing assistance and the outcomes for such youth, including the extent to which such youth are able to access stable housing and the rates of homelessness. The report must include findings from any evaluations of state programs and recommendations for improving coordination between public child welfare agencies and federal housing programs.
Legislative subjects
Adoption and foster care; Child safety and welfare; Congressional oversight; Families; Housing and community development funding; Low- and moderate-income housing; Public housing
Committee report
H. Rept. 119-643