Funding Cuts Threaten Transitional Housing Programs for Young Adults Aged Out of Foster Care

Strategic Insights -

Transitional housing programs that are considered a lifeline for young adults aging out of foster care face funding cuts that could reduce services, local advocates warn. This is particularly concerning given that approximately 1 in 4 foster youth will experience homelessness within four years of exiting the system, as reported by the National Foster Youth Institute. State of play: organizations such as SF Court Appointed Special Advocates (CASA) and First Place for Youth are struggling to secure funding due to federal and state budget shifts, and grant terminations. For instance, CASA's national umbrella group had its federal funding terminated in April, and First Place for Youth has been forced to rely on private donors. The Mayor's budget proposal would slash $83.5 million to the grant program for the Department of Homelessness and Supportive Housing.

Key Takeaways:

  • 1 in 4 foster youth experience homelessness within four years of exiting the system (National Foster Youth Institute).
  • Grants for CASA's national umbrella group were terminated in April, affecting volunteer recruitment and training (https://nationalcasagal.org/national-casa-gal-federal-funding-terminated/).
  • First Place for Youth has been forced to turn to private donors due to anticipated state budget shifts (CEO Thomas Lee, Axios).
  • Mayor Daniel Lurie's budget proposal would slash $83.5 million to the grant program for the Department of Homelessness and Supportive Housing (https://sfstandard.com/2025/06/05/daniel-lurie-budget-cuts-san-francisco-nonprofit-grants/).
  • 34% of unhoused youth reported a history with foster care in 2024, per the city's point-in-time count (https://media.api.sf.gov/documents/2024_San_Francisco_Point-in-Time_Count_Youth_Report_8_8_24_1.pdf).
  • San Francisco's foster youth have limited access to housing, with only 32% living in the city, according to the California Child Welfare Indicators Project (https://ccwip.berkeley.edu/childwelfare/index/r).
  • Youth who end up homeless are often at higher risk of substance use and crime involvement, and maintaining funding through the transition to adulthood provides a stable foundation (Yuki Huang, SF State student).

Statistics:

  • 1 in 4 foster youth experience homelessness within four years of exiting the system (National Foster Youth Institute).
  • 34% of unhoused youth reported a history with foster care in 2024, per the city's point-in-time count (https://media.api.sf.gov/documents/2024_San_Francisco_Point-in-Time_Count_Youth_Report_8_8_24_1.pdf).
  • 32% of youth in San Francisco's foster care system live in the city, according to the California Child Welfare Indicators Project (https://ccwip.berkeley.edu/childwelfare/index/r).

Sources:

  • National Foster Youth Institute (https://nfyi.org/issues/homelessness-2/)
  • Axios (https://www.axios.com/local/san-francisco/2024/08/15/homeless-shelter-pit-count)
  • San Francisco CASA (https://nationalcasagal.org/national-casa-gal-federal-funding-terminated/)
  • Reuters (https://www.reuters.com/world/us/us-justice-department-cancels-hundreds-grants-police-crime-victims-2025-04-23/)
  • SF Standard (https://sfstandard.com/2025/06/05/daniel-lurie-budget-cuts-san-francisco-nonprofit-grants/)
  • City of San Francisco (https://media.api.sf.gov/documents/2024_San_Francisco_Point-in-Time_Count_Youth_Report_8_8_24_1.pdf)
  • California Child Welfare Indicators Project (https://ccwip.berkeley.edu/childwelfare/index/r)