Austin, State, and Federal Partners Collaborate to Address Foster Youth Homelessness

Representatives from Austin, the State of Texas, and the Trump Administration testified today before the Texas House Committee on Intergovernmental Affairs on strategies to expand housing opportunities for youth exiting foster care. Testimony focused on maximizing federal Foster Youth to Independence (FYI) vouchers and leveraging recent congressional actions to increase housing resources and improve outcomes for young Texans transitioning from the foster care system. 
  
“Here in Austin, we recognize and have stated clearly that we must intervene earlier to ensure all young people exiting foster care have access to the safe and stable housing they need to achieve self-sufficiency and economic mobility,” said Austin Mayor Kirk Watson. “With our partners in the Texas State House, and the leadership of the Federal Administration, we have an unmatched opportunity to change the life trajectories of thousands of Texas foster youth."
  
Each year, more than 700 young people age out of foster care in Texas. Between 2020 and 2025, nearly 6,000 youth transitioned out of the state’s foster care system. National research indicates that nearly half (46%) of youth who age out of foster care will experience homelessness by age 26. 
  
To combat this disturbing trend, the City of Austin and LifeWorks convened a taskforce in January 2025 focused on preventing homelessness among young people exiting foster care. In October 2025, the taskforce released a report outlining strategies to disrupt the foster care-to-homelessness pipeline, including expanding access to FYI vouchers. Communities across Texas recognize that these vouchers, when paired with strong supportive services, are a critical tool for helping foster youth achieve stable housing and long-term independence. 
  
“The U.S. Department of Housing and Urban Development has given us an amazing opportunity to prevent homelessness among foster youth through the FYI program,” said LifeWorks CEO Dr. Liz Schoenfeld. “Our plan now is to work with the State legislature to dramatically increase the number of youth served through this incredible program.”  
  
Launched during President Donald J. Trump’s first term, the FYI program provides eligible former foster youth with up to 36 months of housing assistance through the Housing Choice Voucher program. Austin has emerged as a statewide leader in implementation, increasing its FYI voucher allocation to 127 vouchers over the past five years and accounting for the largest share of the approximately 650 vouchers currently in use across Texas. 
  
While the program has proven effective, participation is limited by a critical gap in supportive services funding. Federal guidelines require state and local agencies to provide supportive services to voucher recipients, because no dedicated federal funding is available for those services. In addition, state-funded foster youth services generally end when a young person turns 21, despite FYI eligibility extending through age 24. 
  
To address these barriers, the City of Austin and LifeWorks have developed a proposal to expand supportive services for eligible youth statewide. If implemented by the State of Texas, the proposal could enable Texas communities to fully utilize available FYI resources and unlock an estimated 1,850 additional housing vouchers for young people transitioning from foster care. 
 
Link to FYI Informational Document & Recommendations

Link to Task Force Report 
   
 
Additional Quotes 
  
“FYI is one of the most effective federal tools available to help young people transitioning out of foster care avoid homelessness, but vouchers alone are not enough,” said David Gray, Director of Austin Homeless Strategies & Operations. “The City of Austin already invests local resources in the supportive services that help foster youth succeed, which is why we have been able to become a statewide leader in FYI voucher utilization. However, many communities across Texas do not have the resources needed to provide these services and fully access available federal housing assistance. By building on Austin’s success and making a modest statewide investment in supportive services, the Texas Legislature can unlock thousands of additional federal housing vouchers, strengthen outcomes for former foster youth, and help ensure that no young person experiences homelessness as they transition into adulthood.” 
  
“I don’t think you can overstate what a game changing moment for Texas foster youth this is,” said Daniel Heimpel, managing director of Good River Partners, which works to end the foster care to homelessness pipeline nationally. “I see this from a truly national perspective – and from that vantage point it is clear to me that Texas has a once in a generation opportunity to make a huge impact for these deserving young people. I know all the leaders assembled will meet this moment and set the model for other states.”  

To learn more about homelessness in Austin, please visit www.austintexas.gov/homelessness.