September 26, 2025
Portland, Ore. (Sept. 26, 2025) — Multnomah County began its Fiscal Year 2026 State and Federal budget rebalance process this week to address significant funding reductions from the State of Oregon and the federal government.
The reductions will affect a wide range of essential community services — from healthcare to shelter to public safety to housing services — forcing County leaders to make difficult decisions after a series of public meetings planned for the weeks ahead.
The decrease in funding means hundreds of people on the edge could lose their ability to stay in housing, adding to the statewide homelessness crisis. Fewer shelter beds could serve people seeking warm, safe places to sleep. And hundreds more people could lose access to rent assistance and struggle to leave shelters or sidewalks for homes of their own. The Board of Commissioners will consider how to manage and potentially delay some of these looming reductions.
Year-round budget monitoring and adjustments are a regular part of the County’s budget cycle, but this year’s conversation is far more significant than usual. Reductions to state and federal funding, as well as rapidly changing economic circumstances, are affecting the amount of money the County has to pay for critical safety net services.
County departments are assessing the full scope of these cuts to their programs, and the Board of Commissioners will discuss proposed adjustments to the budget during a handful of work sessions in the weeks ahead.
“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. “My colleagues and I are committed to a transparent and public process to navigate this crisis. I want to be honest: the impact of these decisions will be severe and widely felt across our community. My priority will be focusing our limited resources in the most effective way possible to serve our most vulnerable.”
The cuts directly affect programs that provide a safety net for thousands of residents. Among the areas most affected are:
- Transitional housing: The Department of Community Justice faces a reduction of approximately $1.4 million for transitional housing, which will result in the loss of 75 beds or units per night compared to FY 2024-25. After these reductions, the department will have 216 beds/units and 45 vouchers available each night.
- Homeless services: 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.
- Emergency rent assistance: A more than 65% reduction from what the Governor had recommended for the state’s Oregon Diversion & Prevention Program (ORE-DAP) will significantly decrease the County's ability to prevent evictions, with the number of households served expected to drop by more than half.
- Youth services: The loss of competitive grants for youth homelessness prevention and advocacy will reduce case management services for dozens of young people.
- Public safety: The Department of Community Justice and the Multnomah County Sheriff’s Office face significant reductions in Community Corrections funds provided by Senate Bill 1145. This affects services including probation staffing.
In June 2025, Multnomah County approved a $4 billion budget while facing a $15.5 million shortfall in the County’s General Fund — the County’s 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 Board of County Commissioners will hold public work sessions in early October to deliberate on the state and federal budget adjustments. Final budget modifications are scheduled for a board vote on Oct. 16, 2025. Visit multco.us/board to stay up-to-date with the Board’s meeting agenda.
The rebalance is the latest in a string of difficult fiscal decisions for the Board this year. That work started in the winter, when Supportive Housing Services revenue from Metro came in lower than projected...
Department Presentations
Budget Note
The following budget note was approved by the Board of County Commissioners on October 23, 2025.
Pretrial Services
The Board requires additional information to inform decisions in the mid-year budget rebalance. To aid in that process, the Board requests that LPSCC, informed by DCJ and MCSO, provide a report to the Board by March 1, 2026, with a range of options for the
Board to consider on the County’s Pretrial Systems. The recommendation should be drafted by the LPSCC Pretrial Subcommittee with review by the LPSCC Council at regularly scheduled meetings. LPSCC will provide those updates to the Board on
January 8, 2026 with a final report due by March 1, 2026.
The Board requests recommendations that include options incorporating these considerations:
- Current funding changes and likely reduction in funding in FY27
- Design implementation requirements such as labor union protection laws and
transition planning - Options that prioritize clients based on data such as but not limited to Public
Safety Assessment (PSA) score, pretrial numbers, population make up, and
emerging practices - Liability concerns for Multnomah County for providing Pretrial Services
- Legal requirements on Multnomah County to provide Pretrial Services
- Pros and Cons of each option. For example, returning to the courts, consolidating under a County department, fully contracting out to a Community Based Organization, or a hybrid model of County and contracted services.
- Enhances public safety and pretrial justice
- What steps can be taken now and/or have been implemented to begin a strategic transition and ensure effective use of our pretrial system, both current and future.
- Resources needed to do this work, for both planning and implementation.
- Models that are in line with national best practices, including but not limited to those outlined in the Justice System Partners enhanced practice report.