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HUD Issues Updated Guidance for Foster Youth to Independence (FYI) Vouchers

HUD has published Notice PIH 2026-19, which updates requirements for the Foster Youth to Independence (FYI) initiative and makes additional voucher funding available to public housing agencies (PHAs). The notice supersedes PIH Notice 2023-04 and includes several important policy and administrative changes.

The notice renames the program the Melania Trump Foster Youth to Independence Initiative, although the FYI acronym remains unchanged. FYI provides Housing Choice Vouchers (HCVs) and supportive services to eligible youth transitioning from foster care.

 

Key Changes for PHAs

HUD’s updated guidance includes several significant revisions:

  • Makes $38.2 million available for new FYI voucher assistance, which PHAs may request on a rolling, noncompetitive basis while funding remains available.
  • Removes the annual cap on the number of FYI vouchers a PHA may request, subject to funding availability.
  • Clarifies the income eligibility for FYI vouchers as 50% of Area Median Income (AMI); HUD has previously stated that income eligibility was either 30% or 80% of AMI.
  • Eliminates the utilization threshold requirement that previously applied to PHAs seeking additional FYI vouchers.
  • Revises the definition of “at risk of becoming homeless” for purposes of determining youth eligibility.
  • Clarifies procedures for voluntarily returning unused FYI vouchers and associated funding and states that HUD will issue future guidance related to recapturing unutilized vouchers.
  • Explains how HUD will reallocate recaptured FYI funding through the application process outlined in the notice.
  • Encourages PHAs to proactively amend their administrative plans to facilitate future FYI voucher requests.
  • Clarifies the applicability of waivers and alternative requirements previously established under Notice PIH 2025-08.

 

Eligibility and Partnerships

Eligibility to receive FYI vouchers remains unchanged by the notice. A PHA must have an existing Housing Choice Voucher Annual Contributions Contract (ACC) and must partner with a Public Child Welfare Agency (PCWA). HUD also encourages PHAs to develop partnerships with Continuums of Care, state and local governments, schools, philanthropic organizations, and faith-based groups to support participating youth.

 

Why This Matters

The notice provides PHAs with greater flexibility to expand housing assistance for youth leaving foster care by removing previous voucher request limitations and reducing administrative barriers to obtaining additional FYI funding. Agencies interested in participating or expanding existing FYI programs should review the notice and assess whether administrative plan updates may be needed to take advantage of newly available funding opportunities.

PHADA will provide additional coverage of this notice in the forthcoming edition of the Advocate.

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