Guaranteed Income for Foster Youth Act

HR 7038, the Guaranteed Income for Foster Youth Act, creates a federal program providing automatic $12,000 annual cash benefits to former foster youth who exited care after age 16 but before age 27. Eligible youth aged 18-27 receive benefits for up to five years with no requirements to prove need, and states must enroll them automatically upon turning 18. Benefits are disregarded for other federal program eligibility, and states must offer financial literacy education while reporting detailed data on participants (including race, disability status, and housing). The program takes effect October 1, 2025, with states required to submit annual reports on outcomes.