The Guaranteed Income for Foster Youth Act would establish a federal program providing direct cash payments to young adults who have exited the foster care system. Eligible recipients would be individuals who were in foster care after age 14, left foster care at age 16 or older, and are under 27 years old, with each participant receiving up to $12,000 annually for up to five years. States participating in the program must automatically enroll eligible youth at age 18, consult with community organizations serving foster youth when developing their enrollment plans, and offer voluntary financial literacy education to participants. The legislation requires states to submit detailed reports to Congress tracking participant demographics, employment, housing status, and outcomes, while the cash benefits would not count as income for purposes of other federal assistance programs. The program would take effect on October 1, 2025, with states having five years to transition to fully automatic enrollment of all youth emancipating from foster care.
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