Congress Passes the American Rescue Act Plan: Funding for Homeless Children and Youth Included

On March 10, Congress passed the American Rescue Plan Act, H.R. 1319, its most recent package for COVID-19 relief. The bill is expected to be signed by President Biden by the end of this week and take immediate effect thereafter.

We are also excited to see that the age for unaccompanied homeless youth and foster youth to be eligible for the Earned Income Tax Credit has been lowered to 18 years old. We hope the housing, health, income, and child nutrition supports for vulnerable families and youth will alleviate suffering, reduce poverty, and prevent homelessness as our nation recovers from the COVID-19 pandemic.

K-12 Education

• $123 billion for K-12 education 
• $800 million to support the identification, enrollment, and school participation of children and youth experiencing homelessness, including through wrap-around services.  
• $100 million for the Institution of Education Sciences to conduct research related to addressing learning loss amongst marginalized student groups, including students experiencing homelessness and children and youth in foster care.
• Of the remaining amount, States are required to:
• Allocate at least 90% of funds to local educational agencies based on the Title I Part A formula, not less than 60 days after receipt of funds
• Reserve at least 5% of funds for activities to address learning loss through evidence-based interventions, and ensure that these interventions meet students’ academic, social, and emotional needs, and respond to the disproportionate impact of the pandemic on specific student groups, including low-income students, students with disabilities, students who are English learners, racial and ethnic minorities, students experiencing homelessness, students who are in foster care.
• Reserve at least 1% of funds to carry out evidence-based summer enrichment programs that respond to students’ academic, social, and emotional needs and address the disproportionate impact of the pandemic on specific student groups, including students experiencing homelessness, and children and youth in foster care.
• Reserve at least 1% of funds to carry out comprehensive afterschool programs that respond to students’ academic, social, and emotional needs and address the disproportionate impact of the pandemic on specific student groups, including students experiencing homelessness, and children and youth in foster care.
• Refrain from reducing state funding for any high need local educational agency by an amount that exceeds the overall per-pupil reduction in state funds, if any, across all local educational agencies in that fiscal year.
• Refrain from reducing state funding for highest poverty local educational agencies below the level of funding provided to each LEA in fiscal year 2019.
• Local educational agencies are required to:
• Reserve at least 20% of funds for activities to address learning loss through evidence-based interventions, and ensure that these interventions meet students’ academic, social, and emotional needs, and respond to the disproportionate impact of the pandemic on specific student groups, including low-income students, students with disabilities, students who are English learners, racial and ethnic minorities, students experiencing homelessness, students who are in foster care.
• Use remaining funds for any of a variety of activities, including, but not limited to, activities to address the unique needs of students experiencing homelessness, mental health services, planning and implementing summer learning and after-school programs, purchasing sanitization supplies, and addressing learning loss among students experiencing homelessness through tracking attendance and improving student engagement, and other means.
• Refrain from reducing per-pupil funding and full-time equivalent staff for high-poverty schools served by the local educational agency, by an amount greater than the total reduction for all schools within that local educational agency, divided by the number of all enrolled students.
• Develop and make publicly available on its website a plan for the safe return to in-person instruction and continuity of services, within 30 days of receiving funds. LEAs must seek public comment on in-person instruction plans prior to making them publicly available.
• And additional $2.58 billion for grants to states under Part B of the Individuals with Disabilities Education Act (IDEA), $200 million for preschool grants under section 619 of IDEA, $250 million for for infants and toddlers with disabilities under part C of IDEA.

Earned Income Tax Credit (EITC) for Unaccompanied Homeless Youth and Foster Youth

• Lowers the age that youth from foster care and youth who are homeless can claim the EITC to age 18, and for all young adults, to age 19. 
• Allows foster and homeless youth to claim the EITC even if they are full-time students and working (currently law prohibits full-time students from claiming EITC). 
• For one year, increases the maximum credit for a childless claimant in 2021 to $1,502, and also increases the child tax credit.
• SchoolHouse Connection strongly supports these provisions and urges that they remain in any final legislation. By allowing homeless and foster youth to claim the EITC credit during the time they are transitioning to adulthood, the legislation helps to create parity with young adults of the same age who are fortunate enough to be receiving financial support from parents or caregivers.

 Higher Education

• $40 billion for institutions of higher education
• Institutions must use at least half of funds for emergency financial aid to prevent hunger, homelessness, hardship due to the pandemic.

 Child Care

• $15 billion for child care through the Child Care Development Block Grant
• $24 billion in grants to child care providers through the Child Care Stabilization Fund
• Note: Children experiencing homelessness under the education subtitle of the McKinney-Vento Act must be prioritized for federally-funded child care.

Head Start

• $1 billion for the Head Start program.
• Note: Children experiencing homelessness under the education subtitle of the McKinney-Vento Act must be prioritized for Head Start enrollment.

HUD Homeless Assistance

• $5 billion for Homeless Assistance Services provided through the HOME Investment Partnerships Program 
• Funds may be used for tenant-based rental assistance, affordable housing development, supportive services for those not already receiving services, acquisition and rehabilitation/development of non-congregate shelters which may be used as shelter or converted to permanent affordable housing.
• Eligible persons include those who meet HUD’s definition of homelessness, persons who meet HUD’s definition of at-risk of homelessness, persons who are fleeing or attempting to flee situations of domestic abuse, trafficking, or stalking, and populations for whom supportive services would prevent the family’s homelessness or having a high risk of housing instability.
• Note: SchoolHouse Connection urges HUD to refrain from imposing burdensome regulations and documentation required to meet its definition of homelessness and its definition of “at-risk of homelessness,” and from requiring communities to prioritize one eligible group over another. Homeless families and youth who stay temporarily with others, or are in motels, continue to face barriers meeting HUD’s definitions, despite their vulnerability and high risk for COVID-19 infection and transmission. 

Emergency Housing Choice Vouchers

• $5 billion for emergency housing choice vouchers
• Eligible persons include those who meet HUD’s definition of homelessness, persons who meet HUD’s definition of at-risk of homelessness, persons who are fleeing or attempting to flee situations of domestic abuse, trafficking, or stalking, and persons who are recently homeless, as determined by the Secretary, and for whom rental assistance will prevent the family’s homelessness or having a high risk of housing instability.
• Note: SchoolHouse Connection urges HUD to refrain from imposing burdensome regulations and documentation required to meet its definition of homelessness and its definition of “at-risk of homelessness,” and from requiring communities to prioritize one eligible group over another. Homeless families and youth who stay temporarily with others, or are in motels, continue to face barriers meeting HUD’s definitions, despite their vulnerability and high risk for COVID-19 infection and transmission. 

 Emergency Rental Assistance

• $21.5 billion in emergency rental assistance funded through the Coronavirus Relief Fund (CRF) and administered by the Treasury Department.

(Last updated March 10, 2021)