Eugene and Lane County address reduced state shelter funding for FY26

Eugene, OR – Lane County, the City of Eugene, and local service providers collaborated during the 2025 Legislative Session to secure $204.9 million in statewide shelter funding for the biennium through the passage of HB 3644.

Despite these efforts, Lane County received approximately $7.6 million for this half of the budget biennium, representing roughly a 30 percent reduction in state funding compared to last year. Eugene already operates among the lowest cost per bed in the state.

The FY26 impacts on shelters in Lane County include 60 fewer state-funded shelter beds, three fewer shelter programs receiving state funds, a reduction of 32.3 full-time equivalent staff positions, a 50 percent funding cut for Egan Warming Shelter with only three Egan sites operating, and minimal to no housing-focused support for shelter residents.

County and city officials said they are working with shelter providers to prioritize maintaining bed numbers while reducing services to minimal operating levels.

The City of Eugene will continue supporting Lane County’s efforts to secure additional shelter funding for the region.