Over the coming weeks, legislators will continue (PDF) negotiating funding levels for the Youth Homelessness Demonstration Program (YHDP) and other programs that support young people experiencing homelessness. A proposed House bill (PDF) would eliminate funding for YHDP and rescind funding for new projects funded with fiscal year 2025 money. This threatens housing stability for thousands of young people.

Stable housing is foundational to young people’s success. Without it, they’re often unable to complete education and training, apply for jobs, or access other programs to meet their basic needs. And organizations supporting young people experiencing homelessness have already experienced multiple disruptions this year.

As the legislative process moves forward, it’s critical that lawmakers understand their decisions’ implications on the homeless support system that young people depend on to achieve housing stability and successfully transition to adulthood.

The Youth Homelessness Demonstration Program provides crucial dedicated funding support for young people experiencing homelessness

Research shows 1 in 10 people ages 18 to 25 experience homelessness over the course of a year, but young people facing housing insecurity don’t often access the federal housing supports available to people of all ages. These young people rely on a few dedicated federal funding sources, including YHDP, funded by the US Department of Housing and Urban Development (HUD), and Runaway and Homeless Youth Act (RHYA) programming, administered by the Family and Youth Services Bureau (FYSB) within the US Department of Health and Human Services.

YHDP provides competitive grants to local Continuums of Care (CoCs) to implement local coordinated strategies to prevent and end homelessness for people up to age 24. CoCs award grants and engage in planning to determine how funds are spent. They then distribute funding to homeless youth-serving organizations that provide a wide range of services (PDF):

• youth-targeted coordinated entry
• rental assistance and other financial assistance to acquire housing
• street outreach
• independent living skills support
• education and employment assistance
• case management

YHDP also provides funding for youth action boards and emphasizes youth leadership in developing solutions, which research shows can lead to services that better meet young people’s needs.

Legislative negotiations come in the wake of significant cuts and disruptions to supports for young people experiencing homelessness

Many community-based providers who serve homeless young people with YHDP funds have already experienced the following federal funding disruptions this year:

• In January, the Office of Management and Budget (PDF) froze CoC grant funds that communities had been awarded to support their coordinated homelessness strategy, including funds for youth homelessness programs. These unprecedented funding delays continued for a month or more.
• In July, FYSB issued a round of competitive funding for RHYA programs that included several changes disruptive to service providers. These notices of funding opportunity (NOFOs) came with a burdensome 14-day deadline to submit the extensive application paperwork, putting funding at risk for many organizations. And FYSB eliminated separate street outreach funding, defunding specialized street outreach organizations and requiring others to take on hiring or partnering with street outreach specialists.
• In October and November, the 43-day federal government shutdown led to disruptions in new federal awards, reimbursements, and technical assistance upon which local youth-serving organizations rely.

In interviews conducted with homeless youth service providers in summer 2025, we heard that this year’s funding disruptions have directly affected young people by making it more difficult for providers to serve them. Providers shared that peer organizations were forced to lay off staff or temporarily end services, which ruptured delicate relationships with young people, who are often hard to reengage.

“Anytime there’s… a [program] freeze or a hold on something, a young person’s going to just stop going there or accessing it. Even if it’s unfrozen… trust and consistency are... two foundational pieces that young people need the most when they’re accessing services. So, anything that impacts the sense of trust or… consistency is going to have a much more negative effect on a young person than maybe it would in an [older] adult.”

—Homeless youth service provider

Looking ahead, the status of 2025 YHDP funds is uncertain, and future funding requirements may create additional challenges for organizations doing work on the ground to support homeless young people. In November, HUD released a NOFO for YHDP that included major changes that would have created barriers to meeting young people’s needs, including restricting funding for permanent housing, a type of assistance that’s proven to be effective at reducing homelessness.

This NOFO underwent litigation, and HUD withdrew it in early December. On December 19, HUD released an updated NOFO (PDF) that also contains permanent housing restrictions, but it remains unimplemented following a court injunction. This leaves organizations that constitute the backbone of the homeless youth services system in limbo regarding funding they need to continue providing services. As it stands, because of the delayed grantmaking process, many are facing a funding gap that will make it hard for them to keep the lights on.

Congress can prevent youth homelessness now

The current legislative process offers lawmakers the opportunity to support and stabilize young people as they enter adulthood. When the Senate returns to session following the holidays, they plan to vote on an amendment to the bill that funds HUD that would provide an additional 12 months of funding for current YDHP grantees. This would allow providers to ensure continuity of vital services for young people.

As they debate HUD funding, lawmakers should also prioritize preventing young people currently in permanent housing from losing their homes. An investment in YHDP, especially with permanent housing funding protected, and other programs that support young people facing homelessness, is an investment in their educational, health, and economic well-being.