California Unleashes $56 Million in Grants to Secure Housing for At-Risk Young Adults

California is stepping up to support young adults at risk of homelessness. On May 23, 2025, Governor Gavin Newsom and the state’s Department of Housing and Community Development unveiled $56 million in grants for 52 counties. The money will fund housing and services for young people leaving foster care or probation systems, groups that face steep odds of housing instability.

Roughly 9,871 young adults aged 21 to 24 in California have exited foster care, with another 3,000 leaving annually. About 10 percent of the state’s homeless population consists of unaccompanied youth up to age 24. For these individuals, secure housing lays the groundwork for pursuing education, finding work, and building a stable life.

This move strengthens California’s ongoing work to reduce youth homelessness. State programs have reached 14,048 young adults since 2020, helping drop the number of homeless youth from 11,403 in 2020 to 8,569 by 2024, based on Point-in-Time Counts. The strategy hinges on working closely with counties to provide targeted support, from rent assistance to job training.

The grants reflect a broader recognition that young adults need more than temporary fixes. By focusing on those transitioning out of state systems, California aims to address a root cause of homelessness before it takes hold.

The $56 million flows through three Transitional Age Youth programs. The Transitional Housing Program, with $33.3 million, equips counties to secure housing and coordinate services. The Housing Navigation and Maintenance Program, funded at $13.7 million, trains social workers and probation officers to connect youth with housing resources. The Transitional Housing Plus Housing Supplement Program, receiving $9 million, targets high-rent counties like San Diego and Santa Clara.

Funding is allocated based on each county’s share of young adults in or formerly in foster care or probation. Of 56 eligible counties, 52 accepted Transitional Housing funds, 51 took Navigation awards, and all six eligible for the supplement program participated. Counties that opted out pointed to small caseloads or limited staff, and their funds were redirected to areas with greater need.

The programs have a solid track record. Since 2020, they’ve supported 14,048 young adults, with 78 percent moving into permanent housing and 70 percent staying stable after a year. Adding services like case management and career coaching has also lifted employment rates from 52 percent to 62 percent during participation.

Significant challenges remain. Across the U.S., 40 percent of youth aging out of foster care face housing instability within two years, and 10 percent end up homeless. Limited affordable housing, stipends that cover just 30 percent of rent, and long waitlists for youth-specific units create persistent barriers. Some advocates push for extending foster care benefits to age 23, arguing it would lower costs in healthcare and criminal justice over time.

Others suggest a different path, favoring local efforts like faith-based programs or public-private partnerships. They argue these can deliver services more efficiently than large-scale state programs and encourage independence through targeted aid, like vouchers tied to clear goals. Supporters of California’s approach, however, point to its success in keeping youth homelessness growth below the national average, emphasizing the need for consistent funding and trained navigators in every county.

The discussion highlights a shared goal—preventing youth homelessness—but reveals varied approaches. California’s model relies on data-driven funding and county collaboration, striving to balance immediate relief with long-term solutions.

This $56 million investment underscores California’s focus on young adults at a pivotal moment. By tackling housing insecurity, the state seeks to disrupt cycles of hardship and pave the way for education and job opportunities. A 2008 study of similar state programs showed a 19 percent rise in employment and a 68 percent increase in community college enrollment among participants.

Nationally, youth homelessness has climbed 10 percent in recent years, driven by rising rents, mental health struggles, and school disruptions. California’s programs offer a promising framework, but their impact depends on county resources, available housing, and continued investment.

For young people leaving foster care or probation, these grants are a lifeline. They provide not just a place to live but a chance to thrive. As California moves forward, the priority is clear: equipping every young adult with the support to build a future on solid ground.