Oregon lawmakers are advancing a new housing budget that significantly cuts funding for eviction prevention, even as the state faces growing homelessness, a worsening housing shortage, and a record number of eviction filings.
The budget proposal, part of House Bill 5011, passed through a legislative subcommittee and outlines funding for the Oregon Housing and Community Services Department for the next two years beginning July 1, 2025.
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- 1 Major cuts amid budget shortfall
- 2 Eviction prevention takes the biggest hit
- 3 Less support for long-term housing
- 4 Shelter funding remains strong
- 5 Housing trends show deeper trouble
- 6 Frustration over lack of progress
- 7 Budget pressure and competing priorities
- 8 Advocates warn of rising homelessness
- 9 What’s next?
Major cuts amid budget shortfall
The department’s budget is expected to shrink by $1 billion to $2.6 billion, as Oregon grapples with a $500 million shortfall in expected revenue due to slow economic growth and global trade disruptions. These cuts fall well below Governor Tina Kotek’s December proposal.
While her office acknowledged the difficult decisions lawmakers are facing, it expressed disappointment and called for stronger housing investments before the session concludes.
Eviction prevention takes the biggest hit
Eviction prevention efforts will see some of the deepest cuts. Just $33.6 million is allocated for rental assistance and legal aid—down nearly $100 million from the current budget and far less than the $173.2 million Kotek originally requested. The Oregon Law Center warns this reduced funding would help only about 4,300 households, compared to over 27,700 served in the previous cycle.
Less support for long-term housing
Other critical housing programs are also seeing major reductions:
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Homeless-to-housing transition assistance drops to $50.3 million (vs. $188.2M requested)
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Long-term rental assistance receives $87.4 million, well below the $105.2 million Kotek proposed
These cuts come as the gap between rising rents and stagnant wages continues to grow, increasing the demand for housing support across the state.
Shelter funding remains strong
While many feared cuts to shelter services, nearly $205 million is still slated for homeless and emergency shelters—slightly below the governor’s $217 million request. Rep. Pam Marsh, chair of the House Committee on Housing and Homelessness, emphasized that this funding is crucial for maintaining shelter beds and offering a path to stable housing.
Housing trends show deeper trouble
The proposed budget comes at a time of concerning trends:
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Eviction filings hit a record 27,290 in 2023
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Housing construction slowed, with a 12-year low in issued permits
These numbers underscore long-standing issues with housing supply, affordability, and tenant protection—despite large past investments.
Frustration over lack of progress
Lawmakers like Rep. Jami Cate expressed frustration over the lack of visible impact from previous funding. “It feels like we should be seeing a lot more results for the dollars we’re investing,” Cate said, referencing Oregonians still waiting for aid, including wildfire survivors.
Budget pressure and competing priorities
With limited funds and competing priorities like education and behavioral health, lawmakers are under pressure to make tough choices. While Democrats say the budget prioritizes affordable housing and homelessness, even supporters admit it falls short of earlier goals.
Advocates warn of rising homelessness
Housing advocates argue that cutting eviction prevention is short-sighted. Sybil Hebb from the Oregon Law Center said, “People are living very close to the bone these days. Any unexpected expense or illness can push them into crisis.” Advocates stress that prevention is the most cost-effective strategy—keeping people housed avoids higher costs for emergency services and shelters.
What’s next?
House Bill 5011 now moves to the Joint Committee on Ways and Means for final revisions. With only weeks left in the legislative session, lawmakers must decide whether to adjust the housing budget in response to public input and economic realities. Governor Kotek is expected to push for additional investments before the session wraps up.
As Oregon faces one of its worst housing crises, the final outcome of this budget will have long-term consequences for thousands of residents.
