Governor McKee’s 2026 budget could cut 56% of housing funds, 1,000 shelter beds at risk

PROVIDENCE, R.I. — The 2026 budget could cut 56% of housing funds and homeless advocates are urging state leaders to increase funding for critical support services, warning of what they are calling a “homelessness catastrophe”.

On Tuesday afternoon, several advocacy groups, elected officials, and unhoused individuals plan to rally outside the Rhode Island State House, calling for an additional $17.8 million in funding.

Nick Horton, co-executive director of OpenDoors, said Gov. Dan McKee’s proposed 2026 budget would slash funding for the Rhode Island Department of Housing by at least 56%, potentially eliminating up to 1,000 shelter beds this fall.

Even with the governor’s proposed amendments to the Real Estate Conveyance Tax and Short-Term Rental Tax, meant to restore $4.3 million, Horton warned the department would still face a 44% funding cut, likely resulting in the closure of approximately 650 beds.

Earlier this year, ECHO Village, a new pallet shelter community in Providence, officially opened on Tuesday.

House of Hope’s street outreach team will be assisting people living in unsafe situations move into the houses starting Wednesday afternoon. Residents will be moved in groups of 10 to 15 people each week.

The village consists of 45 one-room units, four office units, three hygiene units with four full baths, one ADA bathroom, one staff bathroom, one laundry unit, and one large community unit.

The project has been highly scrutinized due to it going $1.3 million over the initial $3.3 million estimate. It was also supposed to be completed in June 2023, but had many setbacks. Most recently the delays were blamed on not meeting fire and building code requirements.