S4261119th CongressWALLET

Preventing Youth Homelessness Demonstration Act of 2026

Sponsored By: Senator Sen. Murray, Patty [D-WA]

Introduced

Summary

Prevent youth homelessness through targeted demonstration grants and capacity building. The bill would create an HHS-run Demonstration Grant Program and a Capacity Grant Program to fund community strategies for youth ages 12–26.

Show full summary
  • Youth and families: Communities could fund prevention services for youth ages 12–26 and their children, focusing on those exiting foster care, juvenile justice, or behavioral health systems. Grants must include youth-led councils to guide services.
  • Tribal and rural communities: At least 5 percent of Demonstration funds go to Indian Tribes and Native Hawaiian organizations and at least 10 percent go to entities serving rural areas. Capacity grants reserve at least 5 percent each for Tribes and for rural areas.
  • Local agencies and schools: Capacity grants of $0.5 million–$1.5 million help communities plan and build systems to apply for Demonstration grants. Demonstration grants last five years and range from $3 million–$7.5 million with a federal share up to 90 percent and an administrative cap of 10 percent.

*Would authorize $85.0 million per year for Demonstration grants and $20.0 million per year for Capacity grants for fiscal years 2026–2030, plus $1.0 million annually for OIG oversight and would increase federal spending.*

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

New local grants to prevent youth homelessness

If enacted, the bill would create two HHS grant programs to fund local youth homelessness prevention. Demonstration grants would be five-year awards of $3 million to $7.5 million for community prevention projects. Capacity grants would be 18-month planning awards of $500,000 to $1.5 million. Applicants must be eligible entities and submit coordinated community plans and form youth prevention councils. The federal share would generally be up to 90 percent, administrative costs would be limited to 10 percent, and funds must supplement, not supplant, other funding. Each year set-asides would reserve portions of funds for Indian Tribes/Native Hawaiian organizations and for rural areas, and later for prior capacity grantees.

Who counts as a covered youth

If enacted, the bill would define a "covered individual" as someone aged 12 through 26 who is at risk of homelessness or at risk of entering or transitioning out of foster care, juvenile justice, or residential behavioral health. It would also include a child of such an individual. The Secretary would define the exact "at-risk" test using current research, data, and the individual's circumstances and demographics.

Civil rights rules for program funds

If enacted, the bill would bar discrimination in any program funded under this Act on the basis of race, color, religion, national origin, sex, gender identity, sexual orientation, age, or disability. The Secretary would enforce these rules consistent with the Civil Rights Act and judicial review would be available as provided in that Act.

Oversight, evaluation, and public reporting

If enacted, the Secretary would be able to fund evaluations, data systems, and contracts to measure program results and spread best practices. The Secretary must report to Congress not later than two years after grants begin and every year after, with public, searchable, accessible reports listing each grant and outcomes. The bill would authorize such sums as necessary for reporting and evaluation, and it would authorize $1,000,000 to the HHS Office of Inspector General for audits in the first year and the four years after. These evaluation and oversight funds would remain available until expended.

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Sponsors & CoSponsors

Sponsor

Sen. Murray, Patty [D-WA]

WA • D

Cosponsors

  • Sen. Murkowski, Lisa [R-AK]

    AK • R

    Sponsored 3/26/2026

  • Sen. Kelly, Mark [D-AZ]

    AZ • D

    Sponsored 3/26/2026

  • Dan Sullivan

    AK • R

    Sponsored 3/26/2026

Roll Call Votes

No roll call votes available for this bill.

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