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Cutting Foster Care Support Is a False Economy 

Imagine turning 18 and, overnight, being expected to secure housing, earn a living, and pursue your education—entirely on your own. For most young people, such a leap would be daunting. Now imagine doing this after years of uncertainty, moving from home to home and school to school, each transition disrupting your sense of stability and belonging. For those aging out of foster care, it’s the reality they face every day.  

Yet, as budget deficits grow and lawmakers look for places to cut, proven programs that help these young people build stable, productive lives are on the chopping block. 

Recently, the State of Washington eliminated the evidence-based LifeSet program from its budget, leading the organization to quickly scramble to fundraise from private donors to prevent hundreds of youth from losing critical support. In California, the Governor’s approved budget included millions of dollars in cuts to programs that support foster youth in the state, which threaten to reverse hard-won progress for young people aging out of foster care. 

What policymakers often overlook is that Extended Foster Care and related programs are not just compassionate—they are smart, cost-effective investments. Research consistently shows that youth who participate in these programs are far more likely to finish high school or college and far less likely to become homeless or incarcerated. A recent analysis by the Baiyor-Handler Trust and Social Finance, in partnership with First Place for Youth, found that participants in California’s My First Place™ program are five times less likely to be incarcerated, three times less likely to experience homelessness, and will earn an additional $150,000 over their lifetimes, compared to their peers who do not receive these supports. 

If the human impact isn’t enough, the financial case is equally compelling. The same study found that after 15 years, the benefits of these programs outweigh their costs. For every 100 youth who complete the My First Place program, California saves more than $6 million—just from reduced incarceration alone. In 2024, we served nearly 600 youth, for a potential savings of $36 million. The Annie E. Casey Foundation estimates that if all youth in Extended Foster Care achieved outcomes similar to their non-foster peers, the nation would save $4.1 billion in future costs. 

As part of an ecosystems analysis commissioned by a philanthropic foundation, First Place recently convened youth in Washington who participate in extended foster care. One young person shared, “I believe the future can be different. Stability and opportunities to grow for kids in foster care, having a strong community, caring mentors, and access to education can make all the difference. If we focus on these things, we can create a system where children not only survive but thrive. I want to see a future where every child in foster care knows they matter.” 

These young people are not asking for handouts—they’re asking for a fair chance. In tough budget times, investing in these future leaders is not just the right thing to do; it’s the fiscally responsible choice. Let’s ensure every young adult aging out of foster care knows they matter—and has the support to thrive. 

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