I 118th CONGRESS 2d Session H. R. 7038 IN THE HOUSE OF REPRESENTATIVES January 18, 2024 Mr. Robert Garcia of California (for himself, Ms. Omar , and Ms. Lee of California ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To provide a guaranteed income for older youth who have exited foster care.

1. Short title This Act may be cited as the Guaranteed Income for Foster Youth Act . 2. Guaranteed income for older youth who have exited foster care (a) In general Section 477 of the Social Security Act ( 42 U.S.C. 677 ) is amended— (1) in subsection (a)(4), by inserting , or 27 years of age, in the case of a State with a certification under subsection (b)(3)(L), to provide cash benefits to eligible former foster youth who have not attained such age, in accordance with such subsection before the last close parenthesis; (2) in subsection (b)— (A) in paragraph (2), by adding at the end the following: (G) (i) Support the enrollment of eligible youth (including youth with disabilities) in the State cash benefit program provided for in subsection (k). (ii) Within 5 years after the State begins enrolling youth in the program, provide a pathway for the automatic enrollment in the State cash benefit program provided for in subsection (k) of all youth on emancipation from foster care in the State. ; and (B) in paragraph (3)— (i) in subparagraph (C), by inserting , other than amounts expended to carry out subsection (k), before will be expended ; and (ii) by adding at the end the following: (L) The following certifications by the chief executive of the State with respect to the State cash benefit program provided for in subsection (k): (i) A certification that, in developing the plan for enrolling eligible youth in the program, the State has consulted widely with public and private organizations, including engagement (as defined by the Secretary) with a local public or private nonprofit entity, including a community-based organization, with expertise and experience providing direct services to foster youth who have not attained 18 years of age or former foster youth, and has given all interested members of the public at least 30 days to submit comments on the enrollment plan before finalizing the plan. (ii) A certification that the agencies implementing the program— (I) will support the enrollment of eligible youth, including youth with disabilities, in the program; and (II) are offering voluntary financial literacy education to all youth enrolled in the program. (iii) Within 5 years after the State begins enrolling youth in the program, a certification that the State is automatically enrolling in the program all youth emancipated from foster care in the State. ; and (3) by adding at the end the following: (k) Guaranteed income program (1) In general All and only the following conditions shall apply to a State cash benefit program under this subsection: (A) Eligibility Cash benefits and financial literacy education under the program shall be provided, on an unconditional basis, for youth who— (i) were in foster care after attaining 14 years of age; (ii) exited foster care after attaining 16 years of age; and (iii) have not attained 27 years of age. (B) Enrollment Each youth eligible for benefits under the program who has attained 18 years of age shall be automatically enrolled in the program— (i) in the case of a youth who attained such age before the effective date of this subsection, on the effective date; or (ii) in the case of a youth who attains such age on or after the effective date, on the date the youth attains such age. (C) Limitation on annual benefits The total amount of cash benefits to be provided for a youth under the program in any period of 12 consecutive months shall be $12,000. (D) Duration Cash benefits under the program may be provided for a youth only during the 5-year period that begins with the later of— (i) the date the youth exits foster care; or (ii) the effective date of this subsection. (E) Enrollment support for youth with disabilities The program shall, as part of the transition plan developed under section 475(5)(H) for a youth who is eligible for benefits under the program— (i) assist the youth in enrolling in the program; and (ii) in the case of a youth with disabilities, provide reasonable accommodations to the youth. (F) Interim report (i) In general Within 24 months after cash payments are initially made to youth under the program and annually thereafter, the State shall submit to the Congress an interim report on the program, including the following information: (I) The total number of youth participating in the program, disaggregated by race and ethnicity, gender, disability status, housing status, family composition, and income and assets (including income level as a percentage of the Federal poverty line). (II) With respect to each such youth, to the extent applicable— (aa) the employment type and job status of the youth; (bb) the total amount of cash payments made to the youth under the program; and (cc) the ZIP Code in which the residence of the youth is located. (III) Any other information that the State deems necessary (ii) Prohibition on release of personally identifiable information in any public release of the report Any entity who makes available to the public any content of a report submitted under clause (i) shall redact from the content any personally identifiable information. (G) Final report Not later than 12 months after the end of the program, the State shall submit to the Congress and make available to the public a final report on the program, which shall include a quantitative and qualitative analysis of the effects of the income subsidies provided under the program on— (i) financial outcomes of participating youth; (ii) the health and economic well-being of participating youth; and (iii) the social costs of poverty and income volatility, including connections with income fluctuation and health, education, employment, childcare, and other outcomes as determined appropriate by the Secretary. (H) Voluntariness of youth participation in research In preparing a report pursuant to subparagraph (F) or (G), a State may not require a youth to provide information. (2) Treatment of benefits The cash benefits provided to a youth under the program shall be disregarded in determining the eligibility of the youth for, and the benefits to be provided to the youth under, any other Federal or federally supported program, and shall not be considered income of the youth for any purpose under any Federal law. . (b) Conforming amendment to transition plan requirements Section 475(5)(H) of such Act ( 42 U.S.C. 675(5)(H) ) is amended by inserting , and includes information on the consequences of electing to exit foster care and receive benefits under the State cash benefit program, if any, funded under section 477(k) on the eligibility of the child for benefits and supports, and that provides for the automatic enrollment of the child, upon exiting foster care, in the State cash benefit program, if any, funded under section 477(k) before the semicolon. (c) Effective date The amendments made by this section shall take effect on October 1, 2025.