S. 3802 — Foster Care Stabilization Act of 2026

This section establishes a demonstration grant program under new subsection (d) of section 426 of the Social Security Act (42 U.S.C. 626), which authorizes appropriations for child welfare research, demonstration, and training projects (i.e., grants to institutions, agencies, and organizations for projects of regional or national significance). The Secretary of Health and Human Services must award three grants of not more than $1 million each to foster care stabilization agencies (i.e., local public or private nonprofit entities, including community or faith-based organizations, with expertise serving children under state or tribal child welfare plans or foster youth under age 26) to provide emergency relief and improve pre-placement services for foster youth (i.e., individuals in foster care under age 26). Grant recipients have three years to expend funds, with unused amounts returned to the Secretary; applications must describe planned uses and are publicly solicited with outreach to rural areas, Indian Tribes, Tribal organizations, and Native Hawaiian organizations; and funds may be used for (1) hiring personnel, (2) clothing and personal necessities up to $250 per foster youth per year, (3) food and preparation equipment, (4) services to prevent and respond to child abuse and neglect, (5) other emergency assistance for safety and self-sufficiency, or (6) other Secretary-approved purposes. The Secretary must reserve $45,000 of relevant subsection (a) amounts for administration, oversight, and technical assistance and submit a congressional report on grant uses, clothing expenditures, case outcomes, and home transfers (i.e., initial or subsequent foster care placements) for beneficiaries. Grants are funded to the extent subsection (a) appropriations for a fiscal year exceed the prior fiscal year's amount by more than $5 million.