FCIA doubled the federal funds available for independent living programs  to $140 million each year. FCIA Increased Independent Living Allocations for Most States and Allocations per Youth Vary by State

While overall federal funding for state independent living programs  doubled with the passage of FCIA, there were significant variations in the  changes to state allocations, and the maximum amount of funds available  at the time of our 2004 report for each eligible foster care youth ranged  between $476 and $2,300. In addition, the funding formula is based on  the total number of all children in foster care. States Expanded and Improved Services for Youth after FCIA, but Reported That Gaps in Critical Services Remain

In our 2004 survey, 40 states reported expanding services to youth younger  than they had previously served, and 36 states reported serving older  youth, but states reported service gaps in critical areas, such as mental  health and housing. About one-third of reporting states were serving less than  half of their eligible foster care youth population, while an equal  percentage of states were serving three-fourths or more. States also reported that these challenges were more  prominent in rural areas. Of the 4 states we visited in  2004, 3 cited difficulties due to more stringent eligibility requirements  in the adult system, different levels of services, and long waiting lists  for services. Youth reported difficulties renting  housing because of a lack of an employment history, a credit history, or  a cosigner. This service gap was identified by states again in our 2006  survey, as 31 state child welfare directors reported dissatisfaction with  the level of housing for foster youth transitioning to independence. States Reported Increased Coordination with Federal and State Programs to Provide Independent Living Services to Youth, but Barriers Hinder Linkages across Programs

After FCIA, 49 states reported increased coordination with a number of  federal, state, and local programs that can provide or supplement  independent living services, but officials from the 4 states we visited  reported several barriers in developing the linkages necessary to access  services under these programs across local areas. Despite states’ efforts, we continued to find in our 2006 survey that states  were least likely to address challenges in providing services such as  mental health that are typically provided outside of the child welfare  system by other agencies. Officials in the 4 states we visited in 2004  reported several barriers that hinder their ability to establish linkages with  other agencies and programs, including the lack of information on the  array of programs available in each state or local area and differences in  program priorities. To some  extent, this has been due to the fact that state and local child welfare  officials differ in their awareness of resources available from other  agencies. States’ and HHS’s Actions in Response to FCIA Requirements Have Not Yet Established Accountability for Independent Living Programs

All states developed multiyear plans as required under FCIA and  submitted annual progress reports to ACF for their independent living  programs, but the absence of standard comprehensive information within  and across state plans and reports precludes using them at the state and  federal levels to monitor how well the programs are working to serve  foster care youth. State plans and annual reports: All states developed state plans as  required by FCIA that described independent living services they  planned to provide to foster care youth and submitted annual reports  to ACF, but for several reasons, these plans and reports cannot be used  to assess states’ independent living programs.
Why GAO Did This Study

Congress passed the Foster Care Independence Act of 1999 (FCIA), which doubled annual federal funds for independent living programs to $140 million. This testimony discusses (1) states' FCIA funding allocations, (2) services provided and remaining challenges, (3) state coordination of programs to deliver services, and (4) the states and the Department of Health and Human Services' (HHS) Administration for Children and Families' (ACF) progress toward meeting program accountability requirements. This testimony is primarily based on our 2004 report on FCIA (05-25), with updated information from our 2007 testimony on state child welfare challenges (07-850T). To conduct the 2004 work, we surveyed state independent living coordinators, conducted 4 state site visits, and reviewed states' plans and annual reports. Updated information from our 2007 testimony was taken primarily from a 2006 survey of state child welfare directors.

What GAO Found

States' funding allocations for independent living programs effectively ranged from a maximum of approximately $500 to $2,300 for each foster care youth who was eligible for independent living services, according to data available at the time of our 2004 report. Funding varied because of differences in states' eligibility requirements and the funding formula used to allocate funds. Although our 2004 survey of state independent living coordinators showed that 40 states reported expanding existing independent living services to younger youth and 36 states reported serving youth older than they had previously served, states varied in their ability to engage youth and to provide key services. About one-third of reporting states were serving less than half of their eligible foster care youth population, while an equal percentage of states were serving three-fourths or more. Our 2006 survey of state child welfare directors showed that critical gaps remain in providing services such as mental health and housing for youth transitioning to independence. Mental health barriers included differences in eligibility requirements and level of services between the youth and adult systems, and long waiting lists. Housing barriers included limited affordable housing in costly urban areas, scarce rental housing in rural areas, and problems obtaining a rental lease due to the lack of youth employment and credit history or a co-signer to guarantee payment. Almost all states that we surveyed in 2004 reported an increase in coordination with some federal, state, and local programs, but linkages with other federal and state youth-serving programs were not always in place to increase services available across local areas. Many programs exist at the federal, state, or local level that can be used to provide or supplement independent living services, and each state reported in our survey using some of these programs to provide services. Despite these coordination efforts, some states may not make full use of the available resources. Inconsistent availability of information on the array of programs that were operating in each state and local area was cited as a challenge in promoting coordination in both our prior and more current work. States and HHS have taken action to fulfill the accountability provisions of FCIA, but 8 years later, little information is available to assess program outcomes. All states developed multiyear plans for their programs and submitted annual reports, but using these documents to assess state performance was hindered by inconsistencies between the plans and reports, an absence of goals and baseline information to measure progress, and incomplete information on outcomes for the youth serviced. ACF started developing an information system in 2000 to monitor state performance, but final regulations directing states to begin collecting data and tracking outcomes are still pending. ACF is also conducting evaluations of selected independent living programs, but results are not yet available.