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Allowable Uses of McKinney-Vento Subgrant Funds

About the Act

The McKinney-Vento Homeless Assistance Act was originally passed into law in 1987 and represented the first significant U.S. federal legislative response to homelessness. The Act authorizes assistance to people experiencing homelessness, including housing interventions and supportive services.

Subtitle VII-B, the education subtitle, establishes the definition of homeless used by U.S. public schools and authorizes rights and services to address the unique educational barriers and challenges faced by children and youth experiencing homelessness. The education subtitle was reauthorized most recently by Title IX, Part A of the Every Student Succeeds Act.

Allowable Uses of McKinney-Vento Subgrant Funds

Through its National Center for Homeless Education (NCHE), the U.S. Department of Education (ED) has provided a Use-of-Funds Tip Sheet for Serving Children and Youth Experiencing Homelessness with Education for Homeless Children and Youth (EHCY) Program Funds, which provides guiding questions and related decision points to help local educational agencies (LEAs) determine how to spend Education for Homeless Children and Youth (EHCY) subgrant funds. 

Additionally, Subtitle VII-B of the McKinney-Vento Act specifies the following 16 allowable uses of LEA EHCY subgrant funds:

  1. The provision of tutoring, supplemental instruction, and enriched educational services that are linked to the achievement of the same challenging State academic standards as the State establishes for other children and youths.

  2. The provision of expedited evaluations of the strengths and needs of homeless children and youths, including needs and eligibility for programs and services (such as educational programs for gifted and talented students, children with disabilities, and English learners, services provided under title I of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6301 et seq.] or similar State or local programs, programs in career and technical education, and school nutrition programs).

  3. Professional development and other activities for educators and specialized instructional support personnel that are designed to heighten the understanding and sensitivity of such personnel to the needs of homeless children and youths, the rights of such children and youths under this part, and the specific educational needs of runaway and homeless youths.

  4. The provision of referral services to homeless children and youths for medical, dental, mental, and other health services.

  5. The provision of assistance to defray the excess cost of transportation for students under section 11432(g)(4)(A) of this title, not otherwise provided through Federal, State, or local funding, where necessary to enable students to attend the school selected under section 11432(g)(3) of this title.

  6. The provision of developmentally appropriate early childhood education programs, not otherwise provided through Federal, State, or local funding, for preschool-aged homeless children.

  7. The provision of services and assistance to attract, engage, and retain homeless children and youths, particularly homeless children and youths who are not enrolled in school, in public school programs and services provided to nonhomeless children and youths.

  8. The provision for homeless children and youths of before- and after-school, mentoring, and summer programs in which a teacher or other qualified individual provides tutoring, homework assistance, and supervision of educational activities.

  9. If necessary, the payment of fees and other costs associated with tracking, obtaining, and transferring records necessary to enroll homeless children and youths in school, including birth certificates, immunization or other required health records, academic records, guardianship records, and evaluations for special programs or services.

  10. The provision of education and training to the parents and guardians of homeless children and youths about the rights of, and resources available to, such children and youths, and other activities designed to increase the meaningful involvement of parents and guardians of homeless children or youths in the education of such children or youths.

  11. The development of coordination between schools and agencies providing services to homeless children and youths, as described in section 11432(g)(5) of this title.

  12. The provision of specialized instructional support services (including violence prevention counseling) and referrals for such services.

  13. Activities to address the particular needs of homeless children and youths that may arise from domestic violence and parental mental health or substance abuse problems.

  14. The adaptation of space and purchase of supplies for any nonschool facilities made available under subsection (a)(2) to provide services under this subsection.

  15. The provision of school supplies, including those supplies to be distributed at shelters or temporary housing facilities, or other appropriate locations.

  16. The provision of other extraordinary or emergency assistance needed to enable homeless children and youths to attend school and participate fully in school activities.

Based on allowable uses of American Rescue Plan-Homeless Children and Youth (ARP-HCY) funds and information provided by ED in May 2024 (see slide 6), additional allowable uses of LEA EHCY subgrant funds may include:

  1. The provision of wraparound services (which could be provided in collaboration with and/or through contracts with community-based organizations, and could include academic supports, trauma-informed care, social-emotional support, and mental health services)
  2. The purchase of needed supplies (e.g., personal protective equipment, eyeglasses, school supplies, personal care items).
  3. The provision of transportation to enable children and youth to attend classes and participate fully in school activities.
  4. The purchase of cell phones or other technological devices for unaccompanied youth to enable the youth to attend and fully participate in school activities.
  5. The provision of access to reliable, high-speed internet for students through the purchase of internet-connected devices/equipment, mobile hotspots, wireless service plans, or installation of Community Wi-Fi Hotspots (e.g., at homeless shelters), especially in underserved communities.
  6. The purchase and provision of store cards/prepaid debit cards to purchase materials necessary for students to participate in school activities.

Note: While ARP-HCY funds were allowed to be used to pay for short-term, temporary housing (e.g., a few days in a motel) when such emergency housing was necessary to enable a student experiencing homelessness to attend school and participate fully in school activities (including summer school), ED communicated in information shared in May 2024 (see slide 6) that EHCY subgrant funds may not be used for this purpose.