Oregon is facing an eviction crisis just as lawmakers move forward with a proposed budget that dramatically reduces financial support for tenants. Despite growing housing instability, the budget slashes nearly three-quarters of the funds dedicated to eviction and homelessness prevention. As this proposal advances through the legislative process, housing advocates warn of severe consequences for families and communities statewide.
Sharp Cuts to Prevention Services
The newly proposed budget for Oregon Housing and Community Services (OHCS) significantly reduces funding for two major safety-net programs. In the current 2023 to 2025 biennium, the state allocated $130.2 million to eviction and homelessness prevention efforts. Under the new budget approved by the Joint Ways and Means Subcommittee on Transportation and Economic Development on June 10, this amount would drop to $33.6 million. That is a reduction of more than 74 percent.
Advocates Caught Off Guard
The scale of the proposed cuts has alarmed housing advocates who were expecting a difficult budget but not one this severe. Cameron Herrington, director of policy and advocacy for the Oregon Housing Alliance, described the reaction as “shell-shocked,” saying there was no prior indication that core prevention services would be so drastically reduced. Kim McCarty of the Community Alliance of Tenants echoed that surprise, emphasizing that there had been “no warning” about the depth of the cuts.
High Cost of Evictions
Advocates argue that cutting eviction prevention is not cost-effective in the long run. Once tenants lose their housing, the consequences can spiral, leading to job loss, damaged credit, mental and physical health impacts, and long-term instability. McCarty pointed out that while helping tenants stay housed is relatively low-cost, rehousing displaced families is expensive. She emphasized that most tenants only need assistance once to avoid eviction.
Rural Communities Face Greater Risk
The proposed cuts could hit rural parts of Oregon even harder than urban areas. These regions often lack alternative housing options, which makes recovery from displacement even more difficult. McCarty warned that the lack of rental options in smaller communities could lead to longer periods of homelessness and greater strain on already limited local resources.
Evictions at Record Highs
The timing of the cuts adds to concerns. According to Portland State University’s Evicted in Oregon project, eviction filings have been increasing since pandemic-era protections expired. In January 2025, the state saw its highest number of eviction filings on record. This upward trend shows no signs of slowing down, and the budget cuts could worsen the situation for many families.
Lawmakers Acknowledge the Pain
Some lawmakers involved in crafting the budget expressed regret over the proposed reductions. State Representative David Gomberg, co-chair of the budget panel, explained that a weaker-than-expected revenue forecast in May forced tough decisions. He described the situation as a result of a “very, very difficult revenue forecast.” Representative Pam Marsh, who chairs the House Committee on Housing and Homelessness, agreed that the cuts were not a reflection of the programs’ value but rather the result of financial constraints. She cited federal economic instability as a contributing factor to the state’s limited resources.
Rehousing Funds Also Slashed
In addition to cutting eviction and homelessness prevention funds, the budget also reduces resources for rehousing people who are already homeless. This program, which previously had $151 million, would drop to $50.3 million in the new budget. Advocates say this move could make it even harder to get people back into stable housing after they lose it.
Shelter Funding Sees a Modest Increase
While most housing-related programs face reductions, funding for emergency shelters is set to rise slightly. The shelter line item would grow from $189.7 million in the current biennium to $204.9 million for 2025 to 2027. Herrington acknowledged the importance of this increase but warned that without robust prevention efforts, shelters will face overwhelming demand. More families pushed into homelessness will place greater pressure on an already stretched shelter system.
