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The Runaway and Homeless Youth (RHY) Program provides funding to local community-based organizations to address the needs of youth and young adults by providing shelter, programming, and comprehensive, individualized supports to improve outcomes for youth and young adults who have run away or are experiencing homelessness or housing instability in four core outcome areas: (1) Safe and stable housing (2) Education and employment (3) Social and emotional well-being, and (4) Permanent connections. The RHY Act and the current RHY regulations establish minimum and maximum capacity limits for RHY’s Basic Center Programs, Transitional Living Programs, and Maternity Group Homes to ensure programs are reasonable in size, youth tailored, and comprehensive services. The proposed regulatory action would update the current Runaway and Homeless Youth program regulation to provide clarification of program requirements and definitions and create flexibilities to grant recipients in operating their shelter program to best meet the needs of youth.