Lane County officials say state funding cut will force shelter closures, service reductions

Lane County health officials told the Board of County Commissioners on Sept. 23 that the state has sharply reduced emergency shelter funding allocated for fiscal 2026, a move that county staff said will force program cuts, layoffs and fewer shelter beds.

James Ewell, Homeless and Community Action Manager, said the county's emergency shelter system currently counts 924 beds — about 574 year-round beds and 358 additional inclement-weather/motel-voucher beds — that were supported in fiscal year 2025 by roughly $15 million in state —All In— and related operational funds. "We learned just within the last few weeks that the allotment that we are being offered this year is $7,600,000," Ewell told the commissioners, adding that the reduction will require "significant cuts" across providers and county staffing.

County leaders said the state has also changed how administrative dollars may be used: Oregon Housing and Community Services (OHS) is capping the allowable administrative share at 10 percent and directing that 8 percent go to contracted programs and 2 percent be retained by the county. Ewell said providers and county staff historically relied on higher admin allowances to cover back-office functions and contract support.

Why it matters: County staff warned the cut will reduce services that help people exit shelters into permanent housing. "They're really moving away from the housing focus support piece, and instead wanting those funds to go towards prioritizing maintaining beds," Ewell said. Without…