Oregon lawmakers have approved a $2.6 billion budget aimed at tackling the state’s housing and homelessness crisis. The bill, passed by the House in a 39-3 vote, directs significant funds toward shelters but reduces resources for eviction prevention, which advocates warn could worsen homelessness.

$2.6 Billion for Housing Crisis

Oregon’s legislature passed a major housing bill, House Bill 5011, allocating over $2.6 billion to address the state’s ongoing housing and homelessness challenges. The funding will focus on emergency shelters and services for the homeless, with nearly $205 million designated for shelters.

Eviction Prevention Cuts

The approved budget, however, also slashes more than $100 million from eviction prevention services. Funding for rental assistance and legal services for tenants is significantly reduced, causing concern among housing advocates.

Lawmakers Split Over Budget

In a 39-3 vote, the House passed the bill with a few lawmakers absent or excused. Notably, ten Republican lawmakers were boycotting the vote in protest of a Democratic colleague’s conduct during a prior committee meeting.

State’s Financial Challenges

The decision comes amid Oregon’s financial struggles, including a $500 million shortfall in projected revenue. Despite this, lawmakers pressed on with the bill to allocate the remaining available resources to critical housing needs.

Governor’s Budget Requests Slashed

Gov. Tina Kotek had initially requested $173 million for eviction prevention, but the final bill only allocates $33.6 million. Similarly, her request for $188.2 million for homelessness transition support was cut to just $50.3 million.

Advocates Criticize the Cuts

Housing advocates have strongly criticized the cuts, fearing they will exacerbate Oregon’s homelessness problem. With rising rental costs and record-high eviction filings, they warn that fewer funds for eviction prevention will put more Oregonians at risk of homelessness.

Next Steps for the Bill

The bill will now head to the state Senate for its first reading. Lawmakers are under a tight deadline, as they must finalize the budget and adjourn by June 29, according to the state constitution.