A significant budget recommendation emerged from the Transportation Economic Development Subcommittee, proposing a total fund budget of $2.7 billion for the Housing and Community Services Department. This marks a notable 28.2% decrease from the previously approved budget for 2025, yet it reflects a 39.3% increase from the current service level.

Key investments in the proposed budget include $204.9 million aimed at establishing a statewide shelter system, with $102.5 million expected to be ongoing through February 2034. Additionally, $50.3 million is allocated for rehousing efforts, with $25.2 million also anticipated to continue through the same date. The budget further designates $10 million for housing initiatives specifically benefiting Oregon's nine federally recognized tribes, alongside $33.6 million for ongoing eviction prevention measures.

One-time funding is also a focus, with $87.4 million earmarked for long-term rental assistance for up to 24 months and $3.9 million for down payment assistance. The budget also includes resources for housing counseling and the repair or replacement of manufactured homes.

The proposal aims to reauthorize and make permanent positions related to shelter and rehousing that were previously phased out. It also includes $176.4 million and 42 positions dedicated to administering disaster recovery and resilience programs, primarily funded through federal disaster recovery grants following the 2020 wildfires.

As part of the process, the agency is directed to return to the Ways and Means Committee in February with further recommendations on shelter funding and program design for eviction and homeless prevention. The subcommittee has recommended that House Bill 5011 be amended and reported out for passage as amended.