Each year, more than 20,000 youth age out of foster care and lose their safety nets overnight. When foster youth turn 18— or, in some states, 21—they lose access to the financial, educational, and social supports provided through the child welfare system. These youth fare poorly compared to their peers across young adult domains, including mental health problems, substance abuse, and underemployment.
In the summer of 2023, YouthNPower: Transforming Care launched the first direct cash transfer pilot in the United States designed by and for young people who had aged out of foster care. Over the next year, 100 youth aged 18-22 in New York City received $1,000 per month in unconditional direct cash payments for 12 months.
Findings from two studies show powerful results from the unconditional cash grants pilot program for young adults transitioning out of New York City's foster care system: increased sense of well-being and self-determination, a greater portion of youth in the labor market, and enhanced financial stability, with no increase in adverse outcomes like jail entry or shelter use.
Children's Defense Fund-New York and the Public Science Project at The Graduate Center of the City University of New York, both members of the YouthNPower Collective, authored the report on the program and results, "Starting to Live": Findings of a Direct Cash Transfer Pilot for Former Foster Youth in New York City.
The Annie E. Casey Foundation also has programs for children, including those aging out of the foster care system.