Sec. 4. Preventing Youth Homelessness Capacity Grant Program

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The Secretary shall establish a grant program, to be known as the Preventing Youth Homelessness Capacity Grant Program (referred to in this section as the Capacity Grant Program ) under which the Secretary shall make planning grants to eligible entities to better assess the causes of and extent of homelessness of covered individuals within the communities served by such eligible entities to enable such eligible entities to apply for a grant under section 3. In establishing the Capacity Grant Program under paragraph (1), the Secretary shall— consult with— the Secretary of Housing and Urban Development; the Executive Director of the United States Interagency Council on Homelessness; the Secretary of Education; the Attorney General; the Secretary of the Interior; the Secretary of Agriculture; the Secretary of Labor; the Assistant Secretary for Mental Health and Substance Use at the Department of Health and Human Services; and the head of any other agency that the Secretary determines to be appropriate; and ensure that the Capacity Grant Program complements and enhances, and does not conflict with, other initiatives and programs for the prevention of homelessness for covered individuals.

An eligible entity desiring a grant under the Capacity Grant Program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a coordinated community capacity-building plan that details— how the eligible entity plans to identify and solicit potential members of a Youth Homelessness Prevention Council as described in subsection (d)(1); the other entities the eligible entity plans to collaborate with to carry out the grant, which may include— a government agency for the prevention of homelessness for covered individuals and other entities or organizations that serve youth in the community, such as local educational agencies; a Continuum of Care; a housing provider; a State, Tribal, or local child welfare agency; a behavioral health and substance use disorder provider; a delinquency prevention program; the juvenile court system; an organization that serves pregnant or parenting youth and their children; and any other agency or organization with the capacity to identify risk factors for youth homelessness; existing gaps within the eligible entity’s capacity to measure the drivers of and extent of homelessness for covered individuals in the communities served by the eligible entity; the tools, systems, and procedures the eligible entity will develop and use to identify and measure the drivers of and extent of homelessness for covered individuals in the communities served by the eligible entity; and additional funding sources that the eligible entity plans to use to support capacity building and work to prevent homelessness for covered individuals after the end of the grant period.

In selecting eligible entities to receive grants under the Capacity Grant Program, the Secretary, to the maximum extent practicable, shall consider— an eligible entity’s established partnerships with local stakeholders for the prevention of homelessness for covered individuals, including entities described in subsection (b)(2)(A); the comparative geographic diversity of the applicant in relation to other eligible entities receiving grants under the Capacity Grant Program; the extent to which an applicant’s proposed use of grant funds may duplicate or conflict with other programs; and the extent to which an applicant will be able to sustain local homelessness prevention activities for covered individuals after the grant performance period.

Each fiscal year, the Secretary shall award— not less than 5 percent of the total grant funding made available to carry out this section to 1 or more Indian Tribes or Native Hawaiian organizations; and not less than 5 percent of the total grant funding made available to carry out this section to 1 or more eligible entities that serve a rural area. The period of a grant awarded under the Capacity Grant Program shall be 18 months. The amount of a grant awarded under the Capacity Grant Program shall be not less than $500,000 and not greater than $1,500,000.

An eligible entity that receives a grant under the Capacity Grant Program shall use the grant funds— to identify and solicit potential members to serve on a Youth Homelessness Prevention Council established under section 3(d)(2); to identify and measure the drivers of and extent of homelessness for covered individuals in the communities served by the eligible entity; and to develop and use tools, systems, and procedures for such identification and measurement. Except as provided in paragraph (2), the Federal share of any project for which the Secretary awards a grant under the Capacity Grant Program shall not exceed 90 percent.

The Secretary may grant a waiver with respect to the limitation on the Federal share of a project described in paragraph

(1)if— the applicant with respect to the project petitions the Secretary for the waiver; and the Secretary determines that the petition described in subparagraph

(A)demonstrates financial need. Not later than 18 months after the date on which an eligible entity is awarded a grant under the Capacity Grant Program, the eligible entity shall submit to the Secretary a report that describes— how the eligible entity used grant funds during the preceding 18-month period; and the progress of the eligible entity towards fulfilling the objectives for which the grant was awarded. The Secretary— shall establish mechanisms to ensure appropriate use of, and compliance with respect to all terms regarding, grant funds awarded under the Capacity Grant Program; and may establish additional reporting and information requirements for any recipient of a grant under the Capacity Grant Program. Funds made available to an eligible entity under the Capacity Grant Program shall be used by the eligible entity to supplement, and not supplant, other Federal, State, Tribal, and local funds that would otherwise be used by the eligible entity to carry out activities described in this section. The Secretary may reserve not more than 10 percent of amounts made available for a fiscal year to carry out this section for the implementation and administration of the Capacity Grant Program, which shall include— providing technical support and assistance to eligible entities, including ensuring consistency in data collection and reporting; providing assistance to eligible entities to prepare the applications of those eligible entities with respect to grants awarded under the Capacity Grant Program; and conducting outreach to eligible entities regarding opportunities to apply for such a grant. There are authorized to be appropriated to carry out this section— $20,000,000 for each of fiscal years 2026 through 2030; and such sums as may be necessary for fiscal year 2031 and each fiscal year thereafter.