The California Assembly Human Services Committee recently convened to discuss Senate Bill 624, also known as the Foster Act, aimed at enhancing access to the California Foster Youth Tax Credit (FYTC). This initiative is crucial for addressing the financial challenges faced by current and former foster youth, who often live on annual incomes ranging from $9,000 to $16,000 and face a heightened risk of homelessness.

Currently, only 16% of eligible youth take advantage of the FYTC, which was established in 2022 to alleviate poverty among this vulnerable population. The proposed legislation seeks to improve outreach by mandating county child welfare agencies and juvenile probation departments to send annual notices to non-minor foster youth, informing them about the importance of filing state and federal income tax returns to qualify for the credit. Additionally, the California Department of Social Services would be required to provide guidance on best practices for assisting these youth in the filing process.

Supporters of the bill, including advocates from John Burton Advocates for Youth, highlighted the significant benefits of the tax credit. For instance, young people who successfully claim the credit can receive an average tax refund of $1,370, with parenting youth potentially receiving over $5,200. These refunds can dramatically increase their income, providing essential financial support during a critical time in their lives.

Testimonies from former foster youth underscored the real-world impact of the tax credit. Bailey Craig, a 23-year-old advocate, shared her personal experience of receiving the credit, which helped her cover essential expenses like car insurance and transportation. She emphasized the importance of raising awareness about the credit, noting that many peers remain unaware of its existence and potential benefits.

The committee's discussions reflect a growing recognition of the need for targeted support for foster youth, particularly in light of their unique challenges. By improving access to the FYTC, SB 624 aims to empower these young individuals, helping them secure a more stable financial future and reducing the risk of poverty and homelessness.

As the committee moves forward, the outcomes of this bill could play a pivotal role in shaping the support systems available to foster youth across California, ensuring they receive the resources they need to thrive.