As homelessness rates surge in Oregon, lawmakers have slashed funding for eviction prevention and affordable housing services in favor of temporary shelters. Despite urgent need, the state’s 2025 housing budget cuts nearly $1 billion from the previous biennium while setting up a new statewide shelter network and expanding some tenant protections.
Read: Landlords Concerned, Tenants Celebrate as Kingston Approves Third Straight Rent Freeze
Housing Crisis Deepens
Oregon is facing one of its worst homelessness crises in decades. According to Portland State University’s 2024 homelessness report, the number of people experiencing sheltered homelessness rose by 24% in a single year, the sharpest increase since 2007. Governor Tina Kotek declared a homelessness emergency on her first day in office and extended it through early 2026. Eviction filings have also surged, with cases nearly doubling since 2019. Despite this, eviction prevention programs saw their funding drop from a proposed $173 million to just $33.6 million in the new budget.
Also read: Connecticut Expands Rental Aid, Targets Corporate Landlords in New Housing Reforms
Budget Cuts Amid Crisis
House Bill 5011, passed during the 2025 legislative session, reduced the Housing and Community Services Department’s budget from $3.6 billion to $2.6 billion for the next two years. Most of the funds will be directed toward shelter services, rental assistance, and disaster recovery. Advocates criticized the decision, warning it sidelines proven, long-term housing solutions in favor of temporary fixes…