As federal budget negotiations intensify, recent legislative and administrative developments threaten critical support systems for youth and families experiencing homelessness. This blog post provides more information on the implications for youth homelessness service providers.
Congressional Updates
Last month, the U.S. House of Representatives passed a budget reconciliation bill that includes deep and harmful cuts to programs critical to children, youth, and families experiencing homelessness. If enacted, this legislation would significantly reduce funding for essential safety net programs such as Medicaid, SNAP, and federal student aid—undermining the health, education, and housing stability of young people, including those without safe and stable homes. Check out NCSL’s 2025 Budget Reconciliation Tracker for more information.
These cuts would have far-reaching consequences for communities working every day to meet the basic needs of youth, including youth homelessness service providers, schools, and our social safety net, already operating with limited resources. NN4Y strongly opposes any proposals that would increase barriers to services or widen inequities for youth experiencing homelessness and their families.
Meanwhile, the FY2026 federal appropriations process is underway. Congressional appropriators in both chambers continue negotiations around overall spending levels. While the final budget is not expected for several months, NN4Y remains deeply engaged to ensure that youth homelessness programs are protected in the final bills. Your partnership in this advocacy is critical to our collective success.
Thanks to your collective advocacy, over 120 U.S. Representatives and more than 30 U.S. Senators signed onto our FY26 Dear Colleague letters, urging robust funding for Runaway and Homeless Youth Act (RHYA) programs and other key investments. These strong showings of bipartisan support are critical as negotiations continue.
We will keep you informed as the process unfolds and will share opportunities to take action.
Read NN4Y’s FY26 Appropriations Priorities and send an email to your Members of Congress in support of our FY2026 appropriations advocacy.
Administrative Updates
Late on Friday, the Office of Management and Budget (OMB) released some more details on the Administration’s FY2026 budget request, proposing a nearly 23% cut in non-defense discretionary spending. The appendix is here.
This is a proposal from the administration to Congress. However, Congress has the final say. We will continue to review and provide more information as we learn more.
We will provide more details about this and the other policy updates at our member’s only policy session on June 17th.
Members Only Policy Session
Date: Tuesday, June 17, 2025
Time: 2:00 – 3:00 PM Eastern (1:00 PM Central | 12:00 PM Mountain | 11:00 AM Pacific)
Please note that registration is required to confirm membership and receive the join link. For any questions, contact member@nn4youth.org.
Health and Human Services (HHS)
The Family and Youth Services Bureau (FYSB) has returned all FY25 Non-Competing Continuation (NCC) applications for Basic Center, Street Outreach, Transitional Living, Maternity Group Home, and Prevention Demonstration grants. Grantees must revise and resubmit their NCC applications by June 17, 2025, to ensure compliance with Executive Orders related to Diversity, Equity, and Inclusion (DEI). Required revisions include updates to the project narrative, budget, and outcomes.
We will be providing more details at our support session for members with the National Homelessness Law Center on Wednesday, June 4, 2025
Members Only Webinar: Navigating the Recent RHYA NCC Revision Request
Date: Wednesday, June 4, 2025
Time: 3:30 – 5:00 PM Eastern (2:30 PM Central | 1:30 PM Mountain | 12:30 PM Pacific)
Please note that registration is required to confirm membership and receive the join link. For any questions, contact member@nn4youth.org.
Department of Education (ED)
On May 28, the U.S. Department of Education released preliminary FY2025 state allocations for the McKinney-Vento Education for Homeless Children and Youth (EHCY) program. These figures signal the Department’s plan to distribute the Congressionally-approved funding for the 2025–2026 school year. Final allocations are expected in June.
Department of Labor (DOL)
The U.S. Department of Labor has announced a phased pause in operations for all contractor-operated Job Corps centers nationwide, to be completed by June 30, 2025. This decision has prompted bipartisan concern, with members of Congress emphasizing the vital role Job Corps plays in supporting Opportunity Youth and advancing their economic prospects. Senate Appropriations Chair Susan Collins issued a statement opposing the pause. Additional details are available in the Department’s FAQ.
Stay Connected
As we navigate these policy changes and funding updates, staying connected with our community is more important than ever. Your dedication to serving those in need is invaluable, and we deeply appreciate your tireless commitment.
- Sign up for our listserv to receive updates on how developments in DC impact youth homelessness providers.
- If you would like to share your experiences confidentially or have questions about your funding, please contact our Senior Policy Associate Trinady at trinady.maddock@nn4youth.org.
Together, we can continue advocating for and providing critical services to those who need them most.
