Subtitle VII-B of the McKinney-Vento Homeless Assistance Act authorizes the federal Education for Homeless Children and Youth (EHCY) Program, and is the primary piece of federal legislation related to the education of children and youth experiencing homelessness. It was reauthorized in December 2015 by Title IX, Part A, of the Every Student Succeeds Act (ESSA).
The U.S. Department of Education allocates EHCY funding to each state based on the state's share of Title I, Part A funds. States may retain up to 25% of the EHCY funding for state-level program administration, and distribute at least 75% of the funds to subgrant Local Education Agencies (LEAs). A competitive subgrant process must be implemented at least once every three years, with the interrum years being entitlement funding for current subgrantees. The next competitive EHCY funding cycle will open March 2023.