Oregon is grappling with a homelessness crisis that has reached alarming levels, and Governor Tina Kotek is making bold moves to confront the issue head-on. In her recently unveiled $39.3 billion biennial budget, Kotek has prioritized historic investments in homeless services and affordable housing, aiming to tackle the root causes of the crisis and provide long-term solutions.
Released on December 2, the budget outlines approximately $2 billion in funding dedicated to addressing homelessness and housing insecurity. A substantial $217.9 million is allocated to bolstering statewide shelter systems, ensuring they can meet the growing demand for safe spaces. These funds will support existing shelters, expand capacity, and enhance services for the unhoused.
An additional $188.2 million is set aside to assist individuals and families transitioning from homelessness to stable housing. These funds will be directed toward essential services, including case management, rental assistance, and employment support. Recognizing the importance of prevention, Kotek has earmarked $173 million for programs designed to stop homelessness before it starts, addressing issues such as eviction and economic instability.
“Oregon cannot afford to ignore the crisis unfolding on our streets,” Kotek stated during the budget’s release. “This funding is a down payment on a better future, one where everyone has a safe place to call home.”
The governor’s plan also takes a forward-looking approach by addressing the state’s chronic shortage of affordable housing. A whopping $780 million will be invested in the construction of new affordable housing units, with a focus on increasing access for low-income families, seniors, and individuals with disabilities. In addition, $100 million is dedicated to improving essential infrastructure—such as roads, sewers, and utilities—that will support housing development, particularly in underserved areas.
These investments represent some of the most ambitious state-level funding commitments for homelessness and affordable housing in the United States. Advocates praise Kotek’s approach for its breadth and depth, tackling not just immediate needs but also the systemic issues that have fueled Oregon’s housing crisis for years.
However, critics have raised questions about the feasibility of implementing such a sweeping plan. Concerns include the state’s capacity to quickly mobilize resources, navigate bureaucratic challenges, and ensure funds are used efficiently. Others worry that even this historic level of investment may not be enough to fully address the magnitude of the problem, particularly in urban centers like Portland, where homelessness is most visible.
Despite the challenges, local organizations and housing advocates remain optimistic. “This is the kind of leadership we need right now,” said Maria Lopez, director of a nonprofit focused on housing equity. “It’s not just about dollars—it’s about the state recognizing that housing is a fundamental human right.”
As Oregon moves forward with Kotek’s ambitious plan, the success of these initiatives will depend on collaboration among state agencies, local governments, nonprofits, and the private sector. With homelessness rates continuing to climb, the stakes couldn’t be higher. For now, Kotek’s budget signals a renewed commitment to tackling one of Oregon’s most pressing challenges, offering hope to thousands of Oregonians struggling to find a place to call home.
