On May 2, the Administration released a short version of its Fiscal Year (FY) 2026 budget proposal. Every year at the beginning of the appropriations cycle, the Presidential Administration submits a budget request to Congress for the upcoming FY that outlines their funding priorities and policy goals. On May 30, the President’s Office of Management and Budget released their Technical Supplement to the 2026 Budget, detailing specific funding levels for programs that impact youth experiencing homelessness.
The President’s budget indicates the priorities of the administration, but it is not law. Congress will ultimately decide on funding levels and bill language. No Congress has ever fully implemented a President’s budget proposal.
Proposed Spending Levels for Fiscal Year 2026
Runaway and Homeless Youth Act (RHYA) Program – Department of Health and Human Services
RHYA is the primary federal funding stream for community-based programs that provide housing and supportive services to youth, young adults, and young parent families experiencing homelessness. Its primary grants are the Basic Center Program (BCP), Transitional Living Program (TLP), Maternity Group Homes (MGH), and Street Outreach Program (SOP). The proposed overall funding level for RHYA grants is the same as in previous years ($146 million), though the supplement requests $3 million in decreased funding for BCP and $3 million in increased funding for TLP/MGH. It maintains level funding for SOP.
McKinney-Vento Education for Homeless Children and Youth Act Program (EHCY) – Department of Education
EHCY removes barriers to the enrollment, attendance, and success of PreK-12 children and youth experiencing homelessness. This targeted assistance enables children and youth experiencing homelessness to complete their education, enabling them to break the cycle of generational poverty and homelessness.
The President’s budget supplement proposes fully eliminating the dedicated funding for EHCY in FY2026. It would incorporate EHCY, along with 18 other formula and competitive grant programs for elementary and secondary education, into the K-12 Simplified Funding Program (K-12 SFP), a new formula-based block grant for states. The supplement requests $2 billion for K-12 SFP.
NN4Y strongly opposes consolidating EHCY into a state block grant, especially given the extensive research that block grant funding diminishes over time.
Youth-Serving Programs at the Department of Housing and Urban Development (HUD)
Homeless Assistance Grants
Homeless Assistance Grants fund programs including Continuum of Care (CoC), Youth Homelessness Demonstration Program (YHDP), Youth Homelessness System Improvement (YHSI) grants, and Emergency Solutions Grants (ESG).
The President’s skinny budget and budget supplement proposes expanding ESG into a formula-based block grant that would be awarded to states and localities. The new ESG would incorporate CoC (which includes YHDP and YHSI) and Housing Opportunities for Persons with AIDS (HOPWA) into a single block grant.
- Unclear information in the supplement. The skinny budget (page 26) and the supplement (pages 471-472) both state that funding for CoC and HOPWA will be zeroed out, and ESG funding will be significantly increased to accommodate the new block grant program. The supplement says, “The Budget [the supplement] does not provide funding for the Continuum of Care (CoC) program, Permanent Supportive Housing (PSH) program, Youth Homelessness Demonstration Program (YHDP), or the National Homeless Data Analysis Project (NHDAP).” However, the table of program funding levels in the supplement does specify $3.592 billion for CoC with $205 million for YHDP (page 471), as well as $211 million for HOPWA (page 472).
- The Secretary of HUD would have complete discretion over how to allocate block grants to State and local entities. The supplement states that the Secretary would determine funding allocations, priority geographic areas, what activities constitute homelessness services “on an emergency, short-term, or medium-term basis,” and that the Secretary may waive or specify alternative requirements at any time. There is no guidance on how the Secretary should make these determinations, only that it is up to their discretion.
Foster Youth Housing
The supplement proposes $25 million for the Foster Youth to Independence (FYI) voucher program that assists youth aging out of foster care with housing and supportive services. FYI vouchers are currently an allowable use of the Family Unification Program Youth Housing Choice Vouchers. The supplement creates a dedicated line item of $25 million specifically for FYI.
Youth-Serving Programs at the Department of Labor
The Department of Labor funds several important programs to help youth experiencing homelessness and other opportunity youth access apprenticeships, job training, and short- and long-term employment.
- Job Corps eliminated. The supplement allocates $176 million for any necessary expenses to facilitate the closure of all Job Corps programs. Notably, the supplement specifies that “no funds appropriated in this and prior appropriations Acts shall be used for meal services at Job Corps Centers.” Job Corps is currently funded at $1.76 billion and serves approximately 60,000 youth each year, of which 20 to 50 percent (depending on the site) are experiencing homelessness. Many Job Corps sites also house youth who are experiencing homelessness.
- Make America Skilled Again (MASA) program consolidates 11 workforce programs into a single grant program. This includes programs that serve youth: YouthBuild, youth employment and training activities, and apprenticeships. MASA is funded at $2.965 billion, which is approximately $1 billion less than the 11 programs combined.
Advocating for Youth Programs
NN4Y is concerned about the wide-sweeping proposals and cuts in the President’s FY2026 budget. We will continue to meet with Members of Congress—alongside young lived experience experts and youth providers—to emphasize the importance of programs that connect youth experiencing homelessness to housing, education, employment, and more.
How can you help? Complete the form below to send a message to your Members of Congress to express support for RHYA and EHCY. It’s crucial that your Federal Representatives know that their constituents care about these life-saving programs.
You can personalize your message by including examples of your work or the need in your area. Learn more about these programs at our Federal Appropriations Take Action Page.
