Eugene, OR. — Lane County and the City of Eugene are scaling back shelter operations after statewide funding for homelessness services came in millions of dollars below what the region anticipated for fiscal year 2026, local officials announced.
During development of the 2025–2027 Oregon state budget, maintaining homelessness response capacity was a key priority, including shelter operations, housing-focused supports, and rehousing and prevention services. Lane County, the City of Eugene, and service providers worked throughout the 2025 legislative session to secure long-term statewide shelter funding, ultimately resulting in $204.9 million authorized in HB 3644.
Lane County expected more than $11 million of that funding for FY26 to maintain existing shelter capacity, with the City of Eugene anticipating nearly $4 million to sustain City-supported shelters. Instead, the state informed the County in August that it would receive approximately $7.6 million—far short of what local governments and providers say is needed to maintain current levels of service.
In response, and at the state’s direction, Lane County and Eugene collaborated with shelter providers to prioritize preserving as many beds as possible while reducing operations to minimal service levels for the remaining nine months of the fiscal year.
According to local officials, the reduced funding will have significant impacts across the region:
- 60 fewer state-funded shelter beds
- Closure or loss of funding for three shelter programs: ShelterCare Medical Recuperation, Equitable Social Solutions’ Garden Way Medical Respite (now closed), and The Sandbox operated by Carry It Forward
- Elimination of 32.3 full-time equivalent positions, resulting in widespread job losses among shelter staff
- Little to no housing-focused services, leaving providers focused solely on basic needs and minimal operations
- A 50% cut to Egan Warming Center funding, reducing support by about $151,000 and limiting operations to three sites
City officials say the reductions jeopardize progress made in recent years to expand shelter capacity and connect residents with long-term housing.
More information about reductions to City-supported shelters is available at:
https://www.eugene-or.gov/5493/Shelter-Funding
Regional sheltering updates and resources can be found through the Lane County Human Services Division.
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