Houston will add more funding for its homeless initiatives in fiscal year 2026-27.
On May 13, officials with the Houston Housing and Community Development Department presented their proposed budget for the upcoming fiscal year, which includes a 107% increase for homeless initiatives.
Breaking it down
HCD presented a $37.3 million budget for the city’s special revenue fund, which includes the End Street Homeless plan. In FY 2025-26, the same fund had a budget of $17.9 million, but is expecting to spend close to $22.5 million by the end of the fiscal year in June. The newly presented budget will result in a 107% increase.
According to the department, the entire special revenue fund will go to personnel, maintenance and operation for the End Street Homeless plan. The plan includes 419 Emanicipation, the city’s hub for homeless individuals to receive resources for housing and other needs.
The total budget for HCD is $38.6 million, with $1.2 million going to its general fund. Additional funding, such as for employee salaries, will come from grants.
Assessing the need
HCD Director Mike Nichols said the department would like more federal funding for homeless initiatives. Annually, they are expecting to spend about $13.3 million to operate 419 Emanicipation, Nichols said.
In addition to the city’s funding for the homeless plan, $10 million will come from 2024 disaster recovery funding, which also helps with recovery from the 2024 derecho and Hurricane Beryl.
“We get a lot of love, but we haven’t seen the dollars yet,” Nichols said. “That’s going to be key.”
Nichols said he is confident that Harris County will also weigh in on funding for the homeless initiative, especially through Harris Health, which is paying for funding for the health department in 419 Emanicipation.
“Over time, we are going to spend a lot of time with county officials talking about their investment, particularly in exit housing, which is going to be a weakness going forward,” he said. “And so we look forward to them playing that role.”
What’s next
As budget season continues, other city departments will present their budgets to council through May 19. The budget will be voted on June 3, and will go in effect July 1, the beginning of FY 2026-27.
