Lane County staff warn federal cuts could shrink anti-poverty funding for FY2026

County staff told members of the Lane County Poverty and Homelessness Board Executive Committee on Jan. 16 that several federal funding streams the county uses to address poverty and homelessness face potential reductions in fiscal year 2026.

Kate (last name not provided), representing the county Human Services Division, told the committee the Community Service Block Grant (CSBG) is the single largest federal risk: the county now receives about $300,000 and the program is on a federal list to be fully eliminated under a proposed federal plan. She said the Continuum of Care award submitted in October 2024 should hold for the next two years but that Community Development Block Grant (CDBG) and Emergency Solutions Grant (ESG) funds are likely to decline modestly (Kate estimated ~15% for CDBG and ~20% for ESG). She also described expected reductions to tenant-based rental assistance that flows through Oregon Housing and Community Services (OHCS).

Kate stressed uncertainty in all projections: federal funding could change with continuing resolutions and appropriations, and county officials may not know final federal outcomes until after new budgets are adopted. On the state side she said the governor’s proposed budget currently holds many homelessness programs steady — including the Emergency Housing Assistance (EHA) fund, the Housing Stabilization Program, the State Homelessness Assistance Program, executive-order shelter operations funding, and the Oregon Rehousing Initiative — but that legislative changes could alter those amounts before final adoption.

Why this matters: the loss of flexible dollars like CSBG would reduce the county’s ability to support local programs that prevent and reduce poverty. Kate emphasized that local agencies must spend allocated state funds fully and report outcomes, or future allocations risk being reduced because the state could interpret underspending as lowered need.

Details from the presentation and follow-up discussion: - CSBG: County receives about $300,000 annually; staff listed it as the greatest risk should the new federal administration cut the program. - Continuum of Care: Lane County submitted an application in October 2024; staff expect award notifications within one to two months and do not expect immediate reductions for FY2026. - CDBG and ESG: County staff projected modest reductions driven by how federal allocations are redistributed among jurisdictions. - OHCS tenant-based rental assistance and other state-administered rent assistance programs: staff expect some reductions outside the Eugene and Springfield allocations; long-term rent assistance recently restarted and staff expect contracts should support current enrollees into the next fiscal year if money is fully spent. - ORDAP (Oregon Eviction Diversion and Prevention Program): staff said some legislators are considering reducing ORDAP because new HRSN (housing, outreach and nutritional supports) mechanisms provide rent assistance for some Medicaid-enrolled people.

County staff urged providers to explore HRSN benefits and to coordinate with coordinated care organizations (Trillium and PacificSource) and the county to maximize enrollments. Kate repeatedly cautioned that projections are assumptions based on the governor’s budget, past trends and conversations and that final amounts depend on legislative and federal appropriations activity.

Votes at a glance (administrative action taken during the meeting): the executive committee approved the consent agenda (minutes from the Sept. 19 executive committee meeting, the December 2024 statement of revenue and expenditures, and the All-In financial dashboard). The motion passed by voice vote with no recorded opposing votes (tally: yes 3; no 0; abstain 0). The minutes and financial materials were accepted as presented.

What happens next: staff said the county will monitor federal continuing resolutions (the current CR extends to March) and state budget activity through the legislative session, and will work with agencies to identify options if funds decline. The committee was asked to notify county contacts if agencies foresee underspending or need budget adjustments.

Ending: committee members asked follow-up questions about timing and mechanics for shifting funds during the fiscal year; Kate said the county can consider intra-agency line-item moves and will pursue options to help ensure allocated dollars are spent to preserve future funding.