People looking to receive help paying their monthly rent will no longer be able to apply for assistance from the city of Austin. The portal was set to open on April 1. Instead, the city will direct its resources toward eviction settlements.

The program’s closure will cut off hundreds of struggling families from receiving assistance that prevents evictions, according to officials who distribute the funds.

Rental assistance is among many cuts the city made following the failure of Proposition Q last November. The original budget included $4 million for rental assistance and eviction prevention, but the total was cut to $3 million marked only for eviction settlements in the 2026 budget

Susan Watkins, division manager of housing for the city, said the program funding has been split between assistance for people facing eviction, including paying back rent to help people stay in their homes, and helping people pay their monthly rent before an eviction happens.

“This shift is kind of a return to what we know is something very important for residents that are facing eviction,” Watkins said. “And it’s kind of a core function that we wanted to make sure we can maintain with limited resources.”

Rosa Murillo, CEO for El Buen Samaritano, said ending the rental assistance portion of the program is a shock. El Buen helps distribute the city’s rental assistance funds. Murillo said the money helps about 180 families out of the 2,000 people who apply every month.

“We weren’t even serving 10% of the need,” she said. “And that need will continue.”

She said residents should still reach out to the organization if they need help. Other programs are available for struggling families, and she said the group is prepared to help connect people to other resources.

As the city struggles to fund social services and makes cuts, Murillo said families will suffer — and not just from a financial standpoint.

“By cutting the infrastructure of social services in this community what ends up happening is you see more pressure and impact on the emergency services,” she said. “Because when folks are facing financial challenges and all kinds of environmental challenges, mental health is affected. And I’m not sure that the city is considering that in their decision making.”

For the 2025 fiscal year, the city allocated $3.6 million in its budget for the rental assistance program, which helped hundreds of households. The last bit of that money will be doled out at the beginning of March, Watkins said.

The city announced the program’s closure on Friday, prompting outcry from Austin City Council members.

Council Member Vanessa Fuentes has been a vocal supporter of the program and said this was a blow to struggling Austin families. Just days prior to the announcement, she said she referred a resident to the program.

“Its closure blindsided us,” Fuentes said. “Shutting down a lifeline for so many struggling families is disappointing, alarming, and only further highlights the urgency of our affordability crisis.”

Council Member Ryan Alter said the move to close the portal was disappointing, but the shift allows the city to refocus its limited dollars.

“We are going to have to figure out how to continue to support these families so they don’t end up falling into homelessness, which becomes more expensive for the public to help them,” Alter said.

Austin began offering rental assistance not long after the COVID-19 pandemic put many people out of work and in a position where they were struggling to pay rent and bills.

Since June 2021, the city distributed more than $16 million to over 3,100 households. That money also assisted with eviction settlements and moving and storage costs.

Those in need of assistance can visit Speak Up Austin for resources.