Massachusetts Cuts Shelter Budget by 60% — But Is the Crisis Really Over?

In a dramatic change to how the state supports its most vulnerable families, Massachusetts is cutting its emergency shelter budget by over 60%. State officials say the move comes as fewer families are entering shelters and new policies are helping people move out faster — but not everyone is sure this is the right time to dial back spending.

Governor Maura Healey’s administration points to a combination of reforms and a shrinking shelter population as the reasons behind the budget reduction. According to the latest numbers, the number of families in the state’s emergency shelter system has dropped to under 5,000 — the lowest it’s been in nearly two years.

Fewer Families, Less Spending

Just last fall, the emergency shelter system was stretched to its limit. At its peak, it was housing more than 7,500 families — many of whom were placed in hotels due to a lack of available shelter space.

Fast forward to today, and the picture is starting to change. State officials say reforms rolled out earlier this year have helped bring the numbers down. More than 2,000 families have exited the shelter system since January, while only about 1,000 new families have entered.

“This shift allows us to better focus our resources on long-term housing solutions,” a spokesperson for the governor’s office said this week. “We’re seeing real progress, and the system is finally stabilizing.”

What Changed in the Shelter System?

In February, Governor Healey signed a sweeping $425 million emergency spending and reform package into law. The legislation introduced several new rules:

• Families can now only stay in shelters for up to six months

• Background checks are required for all adult shelter applicants

• People can no longer qualify for shelter under “presumptive eligibility,” which allowed quicker access during emergency surges

• The number of families in shelters is now capped at 4,000 starting in 2025

Critics warned these measures might push people out before they’re ready, but supporters say they’re helping shelters focus on families with the most urgent needs — and making it easier to move people into more stable housing options.

Closing the Door on Hotel Shelters

Another big shift is happening behind the scenes: the state is phasing out the use of hotels and motels as emergency shelters. Last year, hundreds of families were being housed in hotel rooms across Massachusetts. Now, that number has dropped by more than half — and 10 more hotel sites are expected to shut down by the end of this month.

“It’s expensive and unsustainable to keep using hotels like this,” said one state housing official. “Our focus now is on finding long-term solutions that provide families with stability, not just a roof over their heads.”

Who’s Still in the System?

Even with the progress, there’s still a big need for shelter services in the state. Roughly three-quarters of the families currently in the shelter system are longtime Massachusetts residents. While the number of new arrivals has slowed, the state continues to face pressure to support local families at risk of homelessness — especially as housing costs remain high.

State case managers are now working directly with families to help them transition into permanent housing. For families who reach the six-month time limit without a housing solution, the state is arranging transfers to different shelter programs with more support services.

What Comes Next?

With the shelter numbers trending downward, the Healey administration is signaling a shift in strategy — away from emergency responses and toward more sustainable, long-term housing support.

Still, some advocates worry the budget cuts are happening too quickly. They fear that if the caseload creeps up again — especially during colder months — the state could find itself unprepared.

For now, though, the governor’s team is optimistic.

“We’re seeing fewer families in crisis, and more moving into permanent homes,” the spokesperson said. “That’s the direction we want to keep going.”