Gov. McKee’s 2026 Budget Could Cut 56% of Housing Funds, Putting 1,000 Shelter Beds at Risk

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.

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