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Multnomah County leaders painted a dire picture of their finances late last week, warning that reductions in federal and state funding will slash shelter beds, curb rent assistance, shrink youth services, and prune programs run by the sheriff’s office.
The cuts will come in the current fiscal year, which began on July 1. The county’s board of commissioners will begin a series of meetings on the matter this Thursday. Final budget modifications are scheduled for a board vote on Oct. 16.
“These cuts from the state and federal government are a blow to our safety net and the essential services our entire community relies on,” Chair Jessica Vega Pederson said in a statement. “I want to be honest: the impact of these decisions will be severe and widely felt across our community.”
Already struggling because of reduced contributions from Metro’s homeless services levy, the county suffered more blows from President Donald Trump’s One Big Beautiful Bill Act, signed on July 4. Among other things, the bill restricts Medicaid funding. While those dollars can’t be used to pay rent or create housing, states can leverage Medicaid to fund housing navigation, tenant support, and assistance with moving costs, according to the Housing Development Consortium, a Seattle-based advocacy group.
Most of the specific cuts described by the county are the result of state budget issues.
“The reduction in expected state funding, if not backfilled, translates to 214 shelter units closing, 873 people not being placed into housing, and 668 people who were previously housed losing the rent assistance that kept them there,” the county said.
Atop that, cuts to the Oregon Diversion & Prevention Program will “significantly decrease” the county’s efforts to prevent evictions, the county said, with the number of households served expected to drop by more than half.
Transitional housing programs will also suffer, the county said. The county’s Department of Community Justice faces a reduction of $1.4 million for its transitional housing program, which will result in the loss of 75 beds or units per night compared with the 2024-25 fiscal year, leaving just 216 beds or units and 45 vouchers available each night.
Probation staffing will also suffer from cuts in the DCJ budget, the county said.
Multnomah County approved a $4 billion budget in June while facing a $15.5 million shortfall in the county’s general fund, the largest spending gap in a decade. “Because the County’s ability to fill the gaps left by state and federal partners is already limited, service reductions are expected to be widely felt,” the county said.
“The federal funding cuts, coupled with state funding constraints and an uncertain economic outlook, will impact the county’s ability to provide essential services,” Commissioner Julia Brim-Edwards said in a statement. “Given these budget realities, we must strategically and effectively make reductions that preserve staff and that have the least impact on core services, and I will be looking for programs that prioritize community safety, public health, behavioral health, and homelessness services.”
In May, economists at the state’s Department of Administrative Services said the consensus among forecasters was for “a close brush with recession in 2025″ with inflation-adjusted growth slowing to 0.9%, inflation accelerating to 3.5%, and unemployment rising moderately to 4.6%.
