Preventing Youth Homelessness Demonstration Act of 2026

Summary

Creates two HHS grant programs to prevent youth homelessness: a Demonstration Grant Program that funds community strategies and services for people aged 12–26 who are at-risk of homelessness (and their children), and a Capacity Grant Program that provides planning grants to help communities measure youth homelessness and prepare Demonstration applications. Grants require cross-system partnerships, trauma-informed interventions, tribal set-asides, regular public reporting, program evaluation, technical assistance, and nondiscrimination protections.

• Creates a Demonstration Grant Program to fund local strategies preventing homelessness for people aged 12–26 who are at-risk, and their children.
• Creates a Capacity Grant Program that provides 18-month planning grants ($500,000–$1,500,000) to help communities prepare prevention strategies and applications.
• Eligible applicants include States, local governments, local education agencies, Continua of Care, Tribes, Native Hawaiian organizations, and other qualified entities.
• Grants require cross-system partnerships (education, housing, child welfare, behavioral health, juvenile justice, etc.) and trauma-informed interventions.
• Requires public, accessible reporting and independent evaluation of program outcomes starting within two years of grant awards.
• Reserves at least 5% of capacity program funding each year for Indian Tribes or Native Hawaiian organizations; includes additional tribal-focused provisions.
• Prohibits discrimination in any program activities funded by the Act and authorizes $1M/year (for five years) to HHS OIG for oversight audits.
• Secretary must consult multiple federal agencies and ensure the programs complement, and do not conflict with, existing homelessness-prevention initiatives.