Staff Reporter
As Austin readies to unveil its proposed city budget, homelessness takes center stage with a staggering $101 million funding blueprint under review. The city signals a bold shift, balancing one-time relief funds, fresh long-term commitments, and hoped-for outside contributions. With housing crises deepening and shelters stretched thin, all eyes now turn to whether Austin’s vision can truly shelter its growing needs. Meanwhile, a separate $350 million forecast by ECHO raises stakes, sketching a ten-year map to “functional zero.” The debate begins—money, strategy, and urgency are all on the table.
📌 STORY HIGHLIGHTS – READ BOX
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Austin eyes $101 million for homelessness response.
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One-third of the funding is one-time allocations (like ARPA).
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One-third is proposed as new, ongoing city investments.
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Remaining third would come from outside system funders.
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Focus includes permanent supportive housing and homelessness prevention.
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A separate $350 million plan by ECHO outlines long-term shelter needs.
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Proposed budget releases July 11, vote expected in mid-August.
As Austin’s next budget proposal inches closer to its July release, all eyes are turning to one issue that has sparked ongoing debate and concern: homelessness. This year, the conversation carries more weight than ever, with the City Council having named it one of the city’s top spending priorities. With pressures mounting and needs growing, the proposed investments could shape Austin’s trajectory for years to come.
Earlier this year, the Austin City Council made a clear and public commitment to addressing homelessness more aggressively through its budget. For many, this was a long-overdue shift in priorities. Council Member Natasha Harper-Madison, speaking on the importance of the move, emphasized the connection between policy and values:
“We’re positioning our investments in the homelessness response system as one of the city of Austin’s top funding priorities, which is critical,” Harper-Madison said.
“And you’ve heard it before, we’ll say it again, our budget is our moral compass. Where we put our money is where our heart is.”
That sentiment is now being tested in real terms. A memo from the Homeless Strategy Office (HSO) provides the most detailed glimpse yet into what the city may propose: a funding framework totaling $101 million aimed at growing the city’s homelessness response system. But it’s not as simple as one large check from City Hall.
According to David Gray, the city’s Homeless Strategy Officer, the $101 million figure represents a multi-layered approach. Only a portion would come directly from the city’s general funds.
“Roughly a third of that identified cost is one-time allocations,” Gray said.
“That includes things like American Rescue Plan Act funding we received during the pandemic or other one-time funds the Austin City Council has already committed to this issue.”
Another third, Gray explained, consists of new ongoing investments that the Homeless Strategy Office is formally asking the city to adopt. These would require more consistent, long-term budget commitments from the city itself.
“The second third is new, ongoing investments that we’re asking the city to consider,” he noted.
The final portion of the $101 million? That’s where external collaboration comes into play.
“And then the last third is money that we are looking to other system funders to contribute,” said Gray, referring to outside partners and agencies that may share the burden of implementation.
So, what does the city think is most needed right now?
According to Gray, part of the focus is on permanent supportive housing, which is crucial for individuals experiencing chronic homelessness. But there’s another layer to the strategy — one that aims to intervene before homelessness happens or escalates.
“A chunk of that is for permanent supportive housing and helping people who are chronically homeless,” Gray said.
“A large portion of that, though, is also looking upstream, helping people prevent homelessness in the first place, or even helping people quickly get rehoused within 45 days of losing their housing.”
The proposed city budget will be made public on Friday, July 11, followed by a formal presentation to City Council on Tuesday, July 15. Between then and mid-August, the document will be subject to adjustments based on feedback from the council, city staff, and the community. Once approved, the final budget will go into effect on October 1.
Gray encouraged Austinites to remain engaged and informed throughout the process.
“If folks have questions, we encourage them to contact our office,” he said.
“We’re very transparent about how we’re spending funding, where money is going, and also happy to dispel any rumors.”
However, this isn’t the only plan floating around city hall. In November, the Ending Community Homelessness Coalition (ECHO) presented its own detailed projections to some council members, offering a broader and longer-term look at what it might take for Austin to reach what experts call “functional zero” homelessness.
As Joseph Montaño, Director of Research and Evaluation at ECHO, explained, the coalition worked with multiple stakeholders and the city itself to build a model that accounts not just for current needs, but projected population trends over the next decade.
“About a year ago we just decided that it was about time to really understand not just where we are at currently but where the population is going so we can appropriately plan,” Montaño said.
“So we decided to do that in conjunction with a lot of our partners and with the city to really understand what the costs would be and what would be needed as a result of that.”
ECHO’s findings were extensive. The group projected the city would need the following over the next ten years to meet demand:
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550 new emergency shelter beds
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2,355 rapid re-housing units
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4,175 permanent supportive housing units
And with those numbers comes a price tag — nearly $350 million to build out those shelter beds and housing units. The cost breakdown is:
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$24.4 million for emergency shelters
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$104.5 million for rapid rehousing
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$217.4 million for permanent supportive housing
Still, despite the scale of the projection, Mayor Kirk Watson appeared cautious about adopting the ECHO plan in full. In an interview with the Texas Tribune, Watson emphasized the importance of city-led strategy while acknowledging ECHO’s value as a resource.
“The candid answer to that is that I think that is a plan that we should accept or receive or adopt as a guideline,” said Watson.
“I don’t think that the governing body of the City of Austin ought to just adopt that ECHO plan. One of the good things we also did is that in 2023, the City of Austin did something that it hadn’t really done… and that was create a Homeless Strategy Office. That Homeless Strategy Office is our Homeless Strategy Office, and it is doing a very good job of helping us with the strategies, and ECHO is someone we should look to to help provide guidance, but I don’t know that we should adopt whole cloth ECHO’s plan, except as one of the things we look to.”
In the weeks ahead, as public scrutiny intensifies and funding decisions solidify, Austin’s leadership faces the challenge of not only spending wisely, but ensuring those investments bring lasting change. The discussions now underway could set the tone for how the city addresses one of its most urgent human issues — and how far it’s willing to go to solve it.
As Austin edges closer to finalizing its budget, the city’s stance on homelessness will face both scrutiny and expectation. With $101 million on the table and competing visions from city officials and advocacy groups like ECHO, the path ahead is layered with urgency and ambition. Whether this budget reflects a lasting solution or a temporary patch remains to be seen. But one fact is clear: how Austin chooses to spend its dollars will speak louder than promises. The city’s next move could redefine its moral and financial priorities for years to come.
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