Foster Care Stabilization Act of 2026

This bill amends the Social Security Act to establish a new demonstration grant program aimed at providing emergency relief to foster youth and improving pre-placement services . The Secretary will award three grants, each up to $1,000,000, to foster care stabilization agencies, which are local public or private nonprofit entities with expertise in serving children in foster care. Agencies receiving grants will have three years to spend the funds on activities such as: hiring necessary personnel providing essential items like clothing (up to $250 per youth annually) and food offering support to prevent child abuse and neglect and other emergency assistance to promote the safety and self-sufficiency of foster youth. Applications must detail how funds will be used for both emergency relief and pre-placement service enhancements, with special dissemination efforts made to rural areas and tribal organizations. The Secretary is required to submit a report to Congress evaluating grant usage, case outcomes, and home transfers for benefiting foster youth. Funding for this program will be drawn from specific increases in existing Social Security Act allocations.