One of Minneapolis’ most successful homelessness prevention programs is not accepting new referrals, and could run out of money by next spring unless the mayor and City Council can agree how to financially rescue it.
Why it matters: The “Stable Homes Stable Schools” program — which helps house 240 Minneapolis Public Schools families at risk of homelessness — has been championed as a success story by practically everyone in a divided City Hall.
- The program stars in Mayor Jacob Frey’s first campaign ad. It’s also racing toward a “fiscal cliff,” city officials warn.
What happened: In 2023, officials decided to use reserves to help fund Stable Homes Stable Schools while they searched for additional public or philanthropic funding sources.
- “The expectation was we’d have more time, and we’d figure it out,” Erik Hansen, the city’s planning and economic development director, told Axios.
- But it’s been a victim of its own success. As more families enrolled, the program’s reserve drained faster than anticipated. Officials paused referrals in July after they realized funds might not last the 2025-26 school year.
Friction point: In August, to remedy Stable Homes Stable Schools’ $3.2 million projected shortfall, Frey proposed canceling another promising anti-homelessness initiative to provide 100 emergency housing vouchers for chronically unsheltered individuals and families.
Yes, but: No vouchers have been issued yet, so Frey administration officials decided it would be irresponsible to begin a new anti-homelessness initiative — promising though it may be — with an existing program short on funds…