New Report from Belmont Innovation Labs, Community Partners Identifies Critical Gaps in Tennessee Foster Care System

Report calls for innovative investment to break the cycle for Tennessee’s foster youth aging out of care

A new report from Belmont University’s Innovation Labs highlights urgent gaps and powerful opportunities to support Tennessee’s foster youth as they transition into adulthood. The Every Child Tennessee: 2025 Impact Case calls for bold investment and innovative solutions to help youth aging out of foster care thrive. Without those supports, data show 70–80% of youth exiting care face homelessness, substance abuse, incarceration or mental illness within just three years.

Building on insights from the 2024 Landscape Study, the Impact Case identifies three catalytic priorities to strengthen outcomes for the more than 850 youth who age out of Tennessee’s foster care system each year: access to caring adult relationships, safe and affordable housing and trauma-informed mental health care. 

“Too many young people leave the foster system without the support they need, and the results are heartbreaking, but there are actions we can take,” said Tom Baldwin, director of strategy and development for Belmont Innovation Labs. “This report reflects not only data, but the real voices of youth who’ve lived it. Those voices helped shape what needs to be done — now we need bold investment to bring those solutions to life.”

Developed in partnership with the Tennessee Governor’s Faith-Based & Community Initiative (GFBCI) and the Tennessee Department of Children’s Services (DCS), Belmont Innovation Labs collaborated with Relativ Impact to produce the report. The work was also guided by a cross-sector Leadership Council, including individuals with lived foster care experience and state and community leaders.

Key Findings

Without targeted supports, transition-age youth face staggering outcomes by age 21:

• 36% have experienced incarceration
  
  
• 31% experienced homelessness in the past two years
  
  
• Nearly 22% are parents
  
  
• Only 16% are enrolled in post-secondary education
  

The research shows these outcomes are not inevitable; they’re the result of systemic gaps that can be addressed through strategic, trauma-informed interventions. In particular, consistent relationships with stable, caring adults can dramatically improve long-term outcomes and life trajectories.

Pilots in Motion

To help bridge the gap between research and results, Belmont Innovation Labs is supporting the launch of Reconstruct Challenge: Thriving Youth, a $1.5 million venture-philanthropy initiative to bring 8–10 established organizations to Tennessee and address these needs statewide. 

One early pilot project already underway is Lumen Flats, a redevelopment led by Elmington Capital in Knoxville. The project will transform a former senior living facility into trauma-informed housing for transition-age youth, with wraparound services including on-site mental health care, educational support and community-building opportunities.

With $620,000 already committed, Belmont Innovation Labs is seeking additional philanthropic partners to join the Reconstruct Challenge with a minimum contribution of $100,000.

“The Impact Case is more than a report -- it’s a call to action,” said Lance Villio, executive director of GFBCI. “Tennessee can rewrite the story for youth aging out of foster care. We first identified the challenges, and now we are moving into investing in real, scalable solutions. The Reconstruct Challenge represents a shift from fragmented efforts to focused, collaborative action that’s grounded in data, guided by lived experience and driven by hope.”