During the 2019-20 school year, public schools identified 1.3 million students who were experiencing homelessness--2.5 percent of all those enrolled. With the added $800 million that Congress provided in 2021 through the American Rescue Plan's Homeless Children and Youth program (ARP-HCY), many states have started or expanded initiatives to support these students. The influx of one-time federal funds to support young people experiencing homelessness puts the responsibility for wise uses to address the short- and long-term needs of this vulnerable population squarely in the hands of state leaders. While ARP focuses on ameliorating the effects of the pandemic, states can accrue a greater value if they emerge with stronger, better approaches to addressing the needs of these students over the long run. This policy update discusses state spending plans, coordination, family and community outreach, staff training, service provision, systems improvement, and questions state boards of education can ask.