New Orleans homeless experts are warning of encampments returning and layoffs as the Office of Homeless Strategy grapples with a major cut to its budget.
The department’s proposed spending plan for 2026 is $6.4 million, which is roughly 42% less than the nearly $11.1 million received in 2025.
As a result of the drastic cuts, the New Orleans homeless director anticipates a lack of shelter space because of the reduced ability to move those in the shelter into housing, the growth of encampments due to the lack of shelter space, and a potential public safety issue with the possibility of crime increasing.
New Orleans City Council members are looking to build back the budget in the wake of the cuts by enhancing fundraising and private philanthropy, harnessing tourism tax dollars, and trying to get more state support.
Leaders say 25% of the unhoused people they are helping are from outside Orleans Parish.
READ MORE:Leaders warn of homeless encampments returning amid steep budget cuts
