In February, the Houston City Council approved the establishment of the “Initiative to End Street Homelessness Fund,” aiming to raise approximately $70 million in its first year.
However, as the 2026 fiscal year approaches in July, the city’s housing department is proposing an annual budget of around $31 million for the fund, revealing a significant shortfall of nearly $40 million.
This funding gap raises concerns about potential delays in Mayor John Whitmire’s ambitious initiative to “end homelessness” in Houston, which he launched last November.
Kelly Young, the CEO of the Coalition for the Homeless of Houston Harris County, highlighted that a fully funded proposal is crucial for achieving a balance where those experiencing homelessness could be rehoused within just 30 days.
The original $70 million plan included targets such as raising $16 million from Harris County and $20 million from private philanthropy.
However, these anticipated contributions have not yet materialized, as revealed during a recent city council budget presentation by Mike Nichols, the director of the city’s housing department.
Despite the financial uncertainties, Nichols asserted to Houston Public Media that the initiative does not face a shortfall.
He expressed optimism about ongoing discussions with philanthropic entities, the county, and corporations for potential funding avenues.
A point-in-time count conducted last year indicated that roughly 3,200 individuals experienced homelessness in the Houston region, including approximately 1,100 who were unsheltered.
Mayor Whitmire has continuously emphasized the urgency of addressing homelessness, previously proposing a series of initiatives aimed to clear homeless individuals from public spaces.
After reconsidering the idea of a city-run encampment, Whitmire shifted focus toward amending a city ordinance that would limit lying down, sitting, or leaving personal items on sidewalks throughout the city at all times.
However, Nichols informed the city council’s quality of life committee that they had not yet expanded the ordinance due to a lack of funding necessary for relocating the homeless.
He stated, “We’ve been going back and forth about trying to do that, and it obviously hasn’t come before council yet because the idea is you need to have a rehousing plan and a mental health plan if you’re really going to enforce this and make it effective.”
Larry Satterwhite, the director of the mayor’s office of public safety and homeland security, acknowledged that any potential changes to the ordinance would start as a pilot project focused on a smaller area.
Satterwhite remarked, “This is a process that will take time,” attributing expected funding from the philanthropic community as well as proposed revisions to mental health legislation at the Texas Legislature as pivotal to the initiative’s progress.
Nichols emphasized, “We’re dealing with human beings.
We learn something every time we do an encampment closure.
We’re putting in and asking council to pass an ordinance, but it’s going to begin in a pilot fashion, in a smaller area, and we will continue to do that pilot as we have a manageable approach to the goals.
And we learn from each of these items, each of these decommissioning of encampments.”
Any changes to the existing ordinance would require city council approval.
In terms of funding for the broader initiative, Nichols remarked during the council’s budget committee session that contributions from the private sector would depend on collaborative efforts from both the city and the county.
He noted that his counterpart at the county’s housing department, Thao Costis, mentioned that they’re anticipating an $8 million contribution, with an additional $8 million earmarked for eviction protection, which they are negotiating to broaden to include homelessness prevention funding.
Costis, speaking with Houston Public Media, refrained from specifying funding amounts pending approval by county commissioners but acknowledged ongoing discussions aimed at generating financial support for the $70 million goal.
She stated, “The city and county are both in discussions with private sector partners as we seek to align resources, timings, and amounts needed for the initiative, particularly since both governments are currently tight on budgetary resources.
We are looking into our available federal resources and any options we can utilize for this purpose.”
In a statement, Nichols recognized the complexity of the situation and expressed appreciation for the commitment from their county counterparts regarding the challenge of addressing homelessness in the city.
The Harris County budget process is set to begin soon, coinciding with the forthcoming fiscal year starting in September.
As for the funding dedicated to Houston’s homelessness initiative, the city has allocated $3.5 million from its general fund alongside $14 million in federal aid.
Moreover, contributions have also come from the Metropolitan Transit Authority of Harris County (METRO) to the tune of $10 million, with Houston First Corporation adding $2.6 million to the fund.
Nichols outlined that these funds could be utilized for various aspects of addressing homelessness, ranging from housing initiatives and services to shelter provisions.
During a public comment session concerning the proposed budget, Sarah Syed, a policy manager with social advocacy nonprofit Woori Juntos, raised concerns regarding the implications of not securing adequate funds on targeted outcomes.
In response, Nichols expressed confidence in their ability to meet the initiative’s goals, clarifying that the term “shortfall” in this context might suggest an insufficiency in funds, whereas the reality is that they are continuously identifying and aligning new sources of funding.
He stated, “In contrast, the work surrounding the mayor’s plan is adaptive, and we are continuously finding new funding sources to support its implementation.”
image source from：https://www.houstonpublicmedia.org/articles/news/city-of-houston/2025/05/19/521761/houstons-end-street-homelessness-fund-remains-well-short-of-goal-as-regionwide-efforts-continue/
