HF4206

Purpose

• Establish an extended foster care services grant program to provide financial support and case management to eligible transition-age youth.

Main Provisions

• Program establishment
  • The commissioner of children, youth and families must create an extended foster care services grant program.
  • Aimed at youth who are at least 21 years old and under 27.
• Grantee eligibility
  • Grants go to community-based providers that:
  • Demonstrate expertise serving transition-age youth.
  • Maintain nondiscrimination policies consistent with state and federal law.
  • Ensure geographic access to services, including areas outside the seven-county metropolitan area.
  • Meet performance metrics related to education, employment, housing stability, and youth satisfaction.
  • Meet training standards set by the commissioner.
• Youth eligibility
  • Eligible youth must:
  • Have been in Minnesota foster care at age 14 or older.
  • Be currently between 21 and 27 years old.
  • Not currently be in a Title IV-E foster placement. -be engaged in one of the following activities:
    • Completing secondary education or a program leading to an equivalent credential.
    • Enrolled in postsecondary or vocational education.
    • Participating in a program to promote or remove barriers to employment.
    • Employed at least 80 hours per month.
    • Receiving treatment for mental health or a substance use disorder.
    • Facing documented barriers such as a medical condition, disability, pregnancy, parenting, or domestic violence.
  • Youth must maintain monthly contact with their case manager.
  • Eligibility can apply whether the youth lives with others or lives independently.
• Services provided
  • Monthly stipends to cover basic living expenses (including education costs), adjusted for geographic cost of living and inflation.
  • Stipend reductions begin when the youth reaches 25, according to a commissioner-developed schedule.
  • Case management services, including monthly financial wellness check-ins.
  • Access to budgeting and employment readiness training to build financial literacy.
  • Assistance in establishing a savings account.
  • Housing navigation services to help locate stable housing.
  • Transition planning with a comprehensive plan and step-down preparation beginning at age 24, including help coordinating adult services.
• Reporting and accountability
  • The commissioner must track and report outcomes disaggregated by protected classes and geography to identify disparities.
  • Beginning February 1, 2029, grantees must annually report:
  • Number of youth served.
  • Amount of money spent on stipends.
  • Outcomes disaggregated by protected classes and geography.
  • Any other relevant information determined by the grantee.
  • Beginning July 1, 2029, the commissioner must report to the legislative chairs and ranking minority members on grant program details, including outcomes, costs, and equity determinations.

Significant Changes from Existing Law

• Creates a new Extended Foster Care Services Grant Program (260C.453) to fund and regulate extended support for transition-age youth up to age 27.
• Establishes mandatory grantee qualifications and service standards for providers delivering extended foster care services outside the traditional foster care system.
• Introduces structured financial supports (monthly stipends with cost-of-living adjustments) and a defined timeline for stipend reductions.
• Adds comprehensive transition planning and life skills services (financial literacy, housing navigation, savings, and adult service coordination) starting before age 25.
• imposes formal, data-driven accountability with disaggregated reporting by protected class and geography, including regular legislative reporting.

Relevant Terms - extended foster care services grant program - transition-age youth - monthly stipends - case management - geographic access - seven-county metropolitan area - Title IV-E foster placement - secondary education - postsecondary education - vocational education - barriers to employment - financial literacy - housing navigation - transition planning - step-down preparation - disaggregated data - equity determinations