$600M in Additional Funding Announced to Identify and Support Homeless Children & Youth

On July 28, the U.S. Department of Education released nearly $600 million in funds as part of the American Rescue Plan Act’s Homeless Children & Youth Program (ARP-HCY). A brief application was made available on July 6 for states to apply for the funds specifically to support the school identification, enrollment, participation, and success of children and youth experiencing homelessness.

This is the second disbursement of funds through the American Rescue Plan Act; the first disbursement of $200 million (ARP Homeless I) was made available on April 23, 2021.

In total, the $800 million through the ARP Homeless Children and Youth program is the single largest federal investment dedicated specifically to children and youth experiencing homelessness. It is eight times the FY2021 appropriation for the McKinney-Vento Act’s Education for Homeless Children and Youth (EHCY) program, and more than the previous ten years of EHCY funding combined.

Key Facts:

• States must distribute at least 75% of ARP Homeless II funds to local educational agencies (LEAs) via a formula that uses the LEA’s allocation under Title I, Part A of the Elementary and Secondary Education Act of 1965 and the number of homeless children and youth identified by the LEA in either the 2018-19 or 2019-20 school year, depending on which number is greater.
• Each state educational agency (SEA) must submit a very brief application to ED prior to receiving ARP Homeless II funds. The application consists of only a cover sheet and a series of assurances. It is due within fourteen days of its publication (which we calculate to be July 20, 2021). In addition, one of the assurances in the application is that the SEA also will submit an ARP-HCY plan within sixty days of publication of the application (which we calculate to be September 3, 2021).
• Just as with ARP Homeless I:
  • LEAs may use ARP Homeless II funds for “any expenses necessary to facilitate the identification, enrollment, retention, and educational success of homeless children and youth,” including providing wraparound services.
  • ARP Homeless II funds are to be used in addition to the supports and services provided with ESSER funds. The needs of students experiencing homelessness must be addressed through the use of the ARP ESSER funds at the state level, as well as through the required 20% LEA reservation to address the disproportionate impact of the pandemic on specific student groups, including students experiencing homelessness.

SchoolHouse Connection is thrilled that the results of our advocacy have come to fruition and that more communities than ever before will receive specific funding to identify and support children and youth experiencing homelessness.

We are excited to work with states, local educational agencies, service providers, and communities to ensure that these funds are leveraged to meet urgent and immediate needs, and to spark innovation and transformation in how our nation responds to the needs of children, youth, and families experiencing homelessness.

For more details on ARP Homeless Children and Youth funds, see SHC’s overview of the timing, allocation, and uses of funds, in question and answer format, here.