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Tuesday, March 3, 2026

Greater Need, Fewer Beds.

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Ask anyone in Portland if they want a solution to the homelessness crisis, and they’ll likely agree. Ask what they think that solution should be, and the answer quickly becomes more varied.

In the midst of rising rates of homelessness in Portland, Multnomah County’s Homeless Services Department (HSD) has proposed eliminating 675 shelter beds to make up for expected funding deficits. This is in addition to potentially eliminating 16 full-time positions at the HSD. The HSD says this is because they expect to see an $87 million deficit in the upcoming year, which includes $31 million of "one-time-only" funding that will end at the end of FY 2026. Which includes $31 million of “one-time-only” funding that will end at the end of FY 2026.

The cause of this deficit is because the HSD expects not to receive funding from the City of Portland in the coming years budget. If so, this would be the first time HSD did not receive funding since 2016.

HSD has said it is shifting its focus away from temporary shelter beds, and is focusing on supporting permanent housing. For some, such as Anna Plumb, interim director of the HSD, this is a strategic move that will allow the department to better insulate their permanent housing programs from a tightening budget. “By reducing units of shelter, we were able to protect all of our permanent supportive housing, keeping over two thousand people in their homes. We were also able to minimize reductions to rapid rehousing programs.”

They expressed a want to focus on creating pathways off the street, arguing that while shelters are important, they’re temporary, and they can create a revolving door effect where people come in and out, but don’t transition out of shelter living to more permanent care. Critics, on the other hand, say they are a vital resource, keeping people alive.

When funding is a zero-sum game, where do we choose to put limited resources?

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