State Shelter Funding Reduction Impacts Lane County Shelter Operations - 11/19/25
Lane County needed more than $11 million in state funding to maintain local shelters for this year (FY26). Of this amount, the City of Eugene anticipated nearly $4 million to help maintain existing City-supported shelter services in Eugene.
The state notified Lane County in August that $7.6 million was available in state funding, which does not sufficiently account for the costs of operating existing shelter services in our region.
At the state’s direction, Lane County and the City of Eugene worked with shelter providers on how to prioritize maintaining bed numbers and reduce shelter services to minimal operating levels for the remaining nine months of FY26.
The fiscal year 2026 overall impacts to shelters throughout Lane County:
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· 60 fewer state funded shelter beds.
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· Three fewer shelter programs funded by state shelter funds (ShelterCare Medical Recuperation at 969 Hwy 99, Equitable Social Solutions Garden Way Medical Respite, and The Sandbox operated by Carry It Forward).
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· 32.3 full-time equivalent fewer staff supporting shelter residents, many of whom lost their jobs.
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· Little to no housing focused supports for shelter residents, resulting in a focus on simply meeting basic needs and maintaining shelter operations.
The reductions at City-supported shelter sites include:
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· A loss of six shelter beds at The Sandbox Shelter. Efforts are underway to either relocate or house clients.
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· A reduction of approximately 10 shelter staff. This includes housing-focused case management staff, who work with shelter residents to develop and implement individual action plans and actively assist clients in looking for housing.
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· A 50% reduction in funding for Egan Warming Shelter (about $151,000).
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· Reduction to 3 Egan sites.
This minimal level of operations is not sustainable beyond this time frame. Unless the future methodology the state is creating for the FY27 allocation results in more funding for the region, additional state funded shelters will need to reduce services further or close.