‘Significant blow’: Multnomah County faces $32 million gap for homeless services

PORTLAND, Ore. (KOIN) — Multnomah County is bracing for widespread impacts after state and federal cuts left a $32 million gap in its homeless services budget — a 9% drop from last year.

County Chair Jessica Vega Pederson called the reductions “a blow to our safety net and the essential services,” warning that the impacts will be felt across the community.

Anna Plumb, Director of the Homeless Services Department, told the board of Commissioners during a “budget rebalance” meeting on Sep. 25, “We do not have enough funding to sustain the system that we’ve built out to support our community.” 

The projected cuts come after the county green-lit a $4 billion budget amid a $15.5 million spending gap in the County’s General Fund in June 2025 — the largest shortfall in a decade, according to officials. 

Much of the deficit comes from the state. The county originally budgeted for nearly $54 million in state dollars this year but received less than half — just $26 million. 

“There’s not a good place to cut homeless services,” Commissioner Shannon Singleton added. “The loss of housing placement dollars is a significant blow to the system and our ability to actually end people’s homelessness.”

Without intervention, officials warn they could lose 214 shelter beds, cut off rent assistance for nearly 670 people, and eliminate nearly 900 new housing placements.

“These impacts are connected to real people, not just dollars,” Singleton said. “These dollars are connected to a family being able to have a safe place to sleep; someone transitioning out of homelessness to get employment services; whether someone gets treatment when they are ready to get clean and sober or spiraling into hopelessness.”

This year, state funding allocated to help run the county’s shelter program was cut by 55%. The reduction comes after the county reported serving 9,000 people in shelters, with 22% moving on to permanent housing last year. 

Commissioner Julia Brim-Edwards said, “It’s all the things we know we probably need more of rather than less of being impacted.”

According to the county, emergency rent assistance is expected to shrink by more than 65% this year. 

To avoid people losing housing, the department is proposing to backfill $20 million to keep shelters open, using a mix of state dollars and shifted funds from the planned East County Resource Center project. 

Leaders also suggest using more than $5 million in capital funds to keep about 600 people already receiving assistance stably housed, though that comes at the cost of fewer new placements this year. 

“We anticipated serving 1,015 people with new placements into housing, across rapid rehousing and long-term housing. With the amount we have now, it would support about 150 — a loss of 873 new placements,” Plumb explained. 

“I’m so nervous about the future and our inability to have resources available,” Commissioner Meghan Moyer added. “I’m already wanting to think strategically about the 2027 budget, and not having a cliff that is devastating.”

Although officials say the plan buys time, by 2027, the county faces an even steeper drop — an $83 million gap once one-time money runs out. 

“I don’t think we’re going to be able to avoid having a cliff in FY 27,” Chair Jessica Vega Pederson said. “So this is the moment where we have to be aligning our strategies, our investments, our goals, our priorities, our values, with our partners in these systems, so that we are being as smart and strategic as we can about the reality we’re all facing in terms of revenue and dollars.”

For now, county leaders say the focus is keeping shelters open and people housed. The Board of Commissioners will continue public work sessions before voting on the rebalanced budget October 16.