2021 Appropriations Act Overview

In late December, the 2021 Appropriations Act was signed into law, including the COVID-19 relief package providing $600 stimulus checks (see our note below on resources for Fosters to receive this check). It also includes the Supporting Foster Youth and Families through the Pandemic Act (HR 7947) and other provisions impacting foster care services.

A note from our Executive Director

Below we’ll recap some of the key provisions of the Act as it relates to Fosters. In addition to emergency COVID-19 funding, the Omnibus Bill provides greater flexibility for local government agencies in regard to Chafee (the federal funding mechanism for most state foster care programs). This does not necessarily mean an increase in all aspects of Chafee for every state.

The passage of the Supporting Foster Youth and Families Act represents an important step of enshrining the best practices recommendations from DHHS and the Children’s Bureau into law. This clearly shows that the federal government recognizes that Fosters are being impacted by COVID-19 and that we need to do more to serve us generally—and especially during the pandemic.

More clarity will be issued by DHHS over the next few weeks regarding expanded funding usages for states, counties, tribal agencies, and other local government agencies. In the meantime, it is now up to Governor Walz to decide how he will lead as a state and use this greater flexibility to provide Fosters with much-needed protection from aging out of care during the pandemic and losing life-saving support. Additionally, we recommend the Walz Administration and Department of Human Services work with stakeholders to create consistent and clear guidance to support county child welfare agencies on what the implications of these changes are and the increased flexibility of Chafee dollars, so there is equitable knowledge and access for Fosters across the state.

Some important highlights of the Acts include:

• Gives states explicit permission to use Chafee funds to provide assistance up to age 26 (increased from age 24) through the end of 2021

• Allows for increasing Education and Training Vouchers awards from $5000 to $12000 for 2021 and suspends some enrollment progress requirements if impacted by COVID

• Allows states to provide foster youth—who would otherwise age out during the pandemic—with the option to stay in care

  • Some groups have reported that states are “prohibited” from aging youth out of care, but the legal requirement is not that strong. Minnesota needs to decide how they are implementing what is now allowed federally—but it gives the state permission to use federal dollars versus state funds for extended care.

• Allows youth who have aged out since January 27th, 2020 to voluntarily reenter care through the end of the public health emergency

• Removes the 30% cap in using Chafee funds for housing assistance

• Expands options for public housing authorities to allow using family unification program (FUP) vouchers for an additional 24 months for foster youth

  • This allows for greater flexibility to provide longevity in housing support—given the multi-year waiting lists in some regions of Minnesota, it is unclear, as a state, whether we are in a position to provide greater depth vs breadth of service

• Streamlines the FAFSA process for foster youth to establish independent status and be eligible for the maximum Pell grant award

  • The Department of Education still needs to send out interpretation guidelines on this change, but this shows what we’ve long known—foster care issues are education issues.

Minnesota now has a chance to do more for Fosters, to whom we owe much more than we are currently providing. With more flexibility and more funding allowances, we now have a greater responsibility to do the right thing for our most vulnerable children. It is beyond time Minnesota recognizes that Fosters are being impacted by COVID-19 and act.

In Solidarity,
Hoang Murphy
Founder and Executive Director
Foster Advocates