State shelter funding for Lane County fell below the county’s expectations, forcing cuts to beds, programs, staffing, and supportive services across Eugene-area shelters.
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…