Funding Cuts Threaten Homelessness Programs as COVID Relief Expires in Orange County

Orange County officials are grappling with the challenges of reduced funding for homelessness services as COVID-era financial support begins to wane. During the Board of County Commissioners meeting on December 10, 2024, discussions highlighted the impact of the diminishing American Rescue Plan Act (ARPA) funds, which have historically bolstered local programs aimed at assisting vulnerable populations.

The meeting revealed that the county's partnership with local organizations, including the Inter-Faith Council (IFC), is facing a "downshift in funding," leading to decreased programming capacity. Despite these challenges, the need for services remains high, with new initiatives like bridge housing recently launched to address ongoing demands.

A key point of discussion was the complex funding structure for homelessness programs, which includes contributions from Orange County, Chapel Hill, Carrboro, and Hillsborough, as well as federal and state grants. While the overall funding pool has seen slight increases, the exhaustion of COVID-related funds has created a new normal for service delivery. In 2023, the county successfully housed 178 vulnerable households through various programs, including rapid rehousing and the Housing Choice Voucher (HCV) program.

However, the outlook for 2024 appears uncertain. Officials anticipate a plateau in the number of households served due to potential cuts in funding from the U.S. Department of Housing and Urban Development (HUD). The meeting underscored concerns that the county may soon reach the cap of its funding capabilities, limiting the effectiveness of its homelessness initiatives.

The county's housing helpline and street outreach programs were highlighted as critical components of the local response to homelessness, providing essential services and support to those in need. Despite the challenges ahead, county officials remain committed to addressing the gaps in housing and support services, including the need for temporary housing solutions and dignity services such as 24-hour bathrooms.

As Orange County navigates these funding challenges, the focus remains on sustaining and enhancing support for its most vulnerable residents, with hopes for new grants and initiatives on the horizon.