Homeless Services at Risk in Washington State

Washington State Government Building

Washington’s $10 billion budget deficit threatens critical homeless services, with a $403 million funding shortfall endangering emergency shelters, rental assistance, and youth homelessness programs amid rising housing costs and increasing homelessness.


How a $10 Billion Budget Deficit Could Leave Thousands Without Support

Washington’s budget deficit could cause the state to spend less on homeless services in 2025, a move that advocates say could make it harder to help the nearly 28,000 homeless folks find stability.

The state’s Department of Commerce estimates a $403 million funding shortfall for programs that support emergency shelters, rental assistance, and youths experiencing homelessness. This funding comes from real estate document recording fees.

That shortfall is part of the state’s broader $10 billion to $12 billion budget deficit. Gov. Jay Inslee previously announced a spending freeze as his administration works through the budget issues. However, declining real estate sales make it hard to see where the state can make up the funding gap.

“We have a really significant deficit of funding for homelessness,” Michele Thomas, director of policy and advocacy at the Washington Low Income Housing Alliance, told the Washington State Standard. “It’s a really dire time.”

Rising Homelessness and the Cost of Living Crisis

According to the latest Point in Time Count, there are more than 28,000 homeless people in Washington. That total breaks down to about 356 homeless people per 1,000 residents, which is the sixth-highest rate of homelessness in the country. There are also about 2,800 newly homeless folks in Washington in 2024 compared to 2023. However, these figures are likely an undercount because of flaws in the Point in Time Count system.

The increasing number of homeless people in Washington also speaks to the devastating impacts the coronavirus pandemic had on low-income earning households. Home prices have risen by more than 8% up to a median price of $683,800 since the pandemic began. Rents have seen a more significant increase, and the average renter in Washington needs to earn about $40 per hour to avoid paying more than 30% of their income on housing costs, according to the National Low Income Housing Coalition. Unfortunately, the average renter in Washington earns $29 per hour.

Washington’s rising home prices have also caused real estate transactions in the state to decline, which is negatively impacting funding for homeless services and shelters. In 2023, there were more than 91,000 real estate transactions compared to just 74,911 in 2024, according to real estate data company ATTOM Data Solutions.

Washington charges $303.50 to record mortgages and deeds. As of December 2024, the Department of Commerce projects it will receive $503 million of income from those fees in 2027. That money is primarily used to fund the state’s Home Security Fund, which supports the construction of temporary housing and efforts to clear street encampments. The state estimates it needs about $300 million more to continue these services.

Advocates Call for Action and Systemic Change

Advocates are calling on state leaders to focus their efforts on expanding services instead of cutting them to fill the budget gap. For instance, advocates in Dane County called on officials to stop funding the construction of a new jail to provide more services to the county’s homeless folks.

“The City and County’s bandaid solutions to homelessness – funding shelters without caseworkers and relying on temporary services rather than systemic solutions – waste millions of taxpayers and private-donor dollars yearly,” advocates wrote in a letter to county officials. “These piecemeal approaches fail to address the causes of homelessness. Instead, they perpetuate a costly cycle of crisis management – relying heavily on EMS, the fire department, and police – rather than stabilization.”

Other advocates are pushing lawmakers to make homeless folks in Washington a protected class, giving them greater legal protections. Democrat Rep. Mia Gregerson has drafted a bill to protect homeless people from housing discrimination, a move that would require the state to spend additional resources on them for legal protection.

“Many communities within Washington are enacting and enforcing laws that disproportionately impact homelessness or make living in public a crime,” the bill reads in part. “These laws are potentially unconstitutional, make it harder for people to exit homelessness, do not solve the underlying problem of homelessness, and waste precious public funds.”

Addressing the Root Causes of Homelessness

To end homelessness, we must agree on its root causes. While some people become homeless after incarceration, the main driver of homelessness is not crime—it’s the lack of affordable housing. California lawmakers, and lawmakers nationwide, should focus on removing barriers to building affordable housing rather than implementing new programs that add unnecessary steps to solving this crisis.

Now is the time to raise our voices about homelessness in California and nationwide. Unhoused people deserve safe, sanitary housing as much as those who can afford rent or a mortgage. Homelessness and poverty are not personal failures; they result from policy choices. That’s why it’s critical to urge your elected officials to support legislation that:

  • Streamlines affordable housing development
  • Removes barriers to permanent housing for people experiencing homelessness
  • Strengthens the government response to homelessness

Together, we can end homelessness.


Robert Davis

Robert Davis

Robert is a freelance journalist based in Colorado who covers housing, police, and local government.

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