Extended foster care and homelessness: Assessing the impact of the Fostering Connections to Success and Increasing Adoptions Act on rates of homelessness among youth

Youth aging out of foster care experience high rates of homelessness during young adulthood. This study assessed the impact of states’ extension of foster care through age 21 under the federal Fostering Connections to Success and Increasing Adoptions Act of 2008 on state-level rates of homelessness among all youth ages 18–24, which we used as a proxy to assess impact on the legislation’s target population. To do so, we leveraged data from the U.S. Department of Housing and Urban Development, the Census Bureau and several other publicly available data sources to construct a novel state-level panel dataset that allowed us to capture changes in rates of homelessness among youth ages 18–24 and extended foster care policies in all 50 states for the eight-year period from 2013 to 2020. Employing a difference-in-difference approach, we found evidence of an anticipated lagged effect of extended foster care, wherein the implementation of extended foster care is associated with a 23 % reduction in the total rate of youth homelessness four years later. This effect persists in years five to six after states adopt this policy change. We found no evidence of a similar effect of extended foster care on rates of homelessness among persons not between the ages of 18–24. Our findings provide important evidence about the impact of the Fostering Connections Act and suggest that extending the age of foster care eligibility may create important safety nets and pathways that support a reduction in rates of homelessness among former foster youth.