Lane County weighs whether to accept Continuum of Care renewal after new federal conditions

Lane County staff told the Poverty & Homelessness Board on April 21 that the county has received a Continuum of Care renewal grant agreement that includes new conditions requiring legal review and could force difficult choices for the county and subgrantee nonprofits.

Kate Budd, human services division manager with Lane County, said the renewal for what the meeting transcript names the “Shingle MLK continuum of care renewal grama agreement” arrived as expected but includes requirements the county has not previously seen. “It included additional requirements that we had not seen in continuum of care agreements before,” Budd said, naming a prohibition on using federal funds “to pay for health care that allowed elective abortions” and clauses tying recipients to compliance with current federal executive orders.

The county is assessing how those federal conditions would affect programs that serve people experiencing homelessness. Budd explained that many of Lane County’s human services programs do not prioritize clients by race, ethnicity or gender identity — instead they prioritize by measures such as lowest income or severe behavioral-health needs. Those approaches may conflict with federal directives referenced in the agreement, she said.

Budd said county legal counsel is involved and that the obligations likely would flow down to subcontractors if Lane County signs the renewal: “Should Lane County sign the renewal grant … we would need to pass those requirements … onto any agency that we subgrant to.” She added that nonprofit agencies and colleges nationwide are facing similar decisions.

Board members and staff discussed practical consequences. Reagan (City of Eugene staff, filling in for Mayor Knudson) asked whether the federal restrictions would apply only to subgrantees receiving federal funds; Budd replied they would apply to those receiving federal funds and that contract language may operate as an umbrella clause affecting an agency’s broader operations. Several board members noted the financial and administrative burdens smaller nonprofit providers could face if they must seek legal counsel or change policies to comply.

Commissioner Pat Farr (vice chair, representing the Lane County Board of Commissioners) said the county will provide leadership and expects to reaffirm public commitments at the commissioners’ meeting next week. Farr said the county’s decisions will take place “with the good grace of” legal staff and recognized that changing court precedent could further change requirements.

The board did not take a policy vote on the Continuum of Care agreement at the meeting. Budd said ongoing internal discussions are considering whether Lane County should accept the renewal and its conditions or decline the federal funds; she said staff would return with additional information and that affected agencies should consult their counsel as they evaluate risk.

Why it matters: Continuum of Care funding supports emergency shelters, rapid rehousing and housing programs used by the county’s most marginalized residents. If Lane County declines funding or if some nonprofits decline subgrants because of attached conditions, programs serving people at high risk of returning to homelessness could lose critical support.

Where this came from: Budd presented the federal funding update and led the discussion. Questions and comments came from Commissioner Pat Farr, Reagan (City of Eugene staff), Councilor Corey Rodley (Springfield), Heather Quasanza (director of philanthropy, Community Supported Shelters), and several PHB members.

What’s next: Budd and county counsel will continue legal review and report back; agencies will be advised to consult in-house counsel. The board did not direct a formal vote at this meeting.