A nonprofit that provides street outreach to people experiencing homelessness in Austin says it could lose more than $50,000 under the city’s proposed budget.
AUSTIN, Texas — As Austin leaders weigh a proposed city budget shaped by financial constraints, one local nonprofit says funding cuts could impact services for some of the city’s most vulnerable residents.
The Texas Harm Reduction Alliance, which provides street outreach, harm reduction supplies and connections to housing and other resources for people experiencing homelessness, says it could lose $52,000 in city funding under the proposed fiscal year 2026-27 budget.
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Executive Director Maggie Luna said the nonprofit had already absorbed a previous 10% funding reduction and is now facing another setback at a time when the demand for services is increasing.
“We’re also seeing an influx of need because the city has started ramping up homeless sweeps,” Luna said.
For Michael Evans, who said he has been experiencing homelessness for the past decade, organizations like the Texas Harm Reduction Alliance have become a critical source of support.
“It’s been tough, just to survive out here, just to find resources to eat, places to stay,” Evans said. “That’s really been the main issue.”
Laura Chesnut said the organization has helped her obtain identification documents and begin the process of securing housing.
“This place got me my ID. They’re giving me my housing. They’re helping me get that,” Chesnut said. “This helped us a lot. We can’t lose it.”
According to the nonprofit, the proposed reduction amounts to an 8.5% decrease in funding from Austin Public Health.
The potential cuts come as the City of Austin works to close budget gaps created in part by state-imposed property tax revenue limits. In a July 2 memo to the mayor and city council, the city’s director of Budget and Organizational Excellence said the proposed budget includes a $16.8 million reduction to the city’s $74.2 million social services contract portfolio.
In a separate budget letter to the mayor and council, City Manager T.C. Broadnax acknowledged that residents would see spending reductions, while emphasizing that the proposal also includes investments in priority services.
The proposed budget increases funding in several areas, including the city’s housing voucher program, Austin Fire Department overtime and Austin Police Department recruitment efforts and more.
People experiencing homelessness say they’re concerned those investments come at the expense of services they rely on every day.
Chesnut said she has experienced multiple homeless encampment cleanups and has lost many personal belongings in the process.
“I’ve been through a sweep six times,” she said. “I’ve lost my mother’s ashes in the camp. I lost a lot of things.”
Evans hopes city leaders will consider the impact the proposed cuts could have on people experiencing homelessness.
“We’re not treated like humans,” Evans said. “I think we need to be more humanized. People need to realize that we’re people too. It’s not our lifestyle or our mentality. Things happen in life.”
The Austin City Council is expected to vote on the proposed fiscal year 2026-27 budget in mid-August.