Massachusetts emergency family shelter system spending nears $900 million for fiscal year

The biweekly report on Massachusetts’ Emergency Housing Assistance Program (often referred to as the emergency family shelter system) was issued by the Healey Administration’s Executive Office of Housing and Livable Communities and the Executive Office for Administration and Finance on Monday, covering data through July 10, 2025.

This system, established under a 1980s “right-to-shelter” law, primarily houses homeless families with children or pregnant women, including both long-term Massachusetts residents and recent migrants, refugees, or asylum seekers. The program faced significant strain in recent years due to an influx of migrants starting in 2022, leading to overflow into hotels and motels, but caseloads have since declined sharply following policy changes like length-of-stay limits and stricter eligibility rules.

Key findings from the report include:

• Total Spending for Fiscal Year 2025 (FY25, July 1, 2024–June 30, 2025): Through July 10, 2025 (with some final bills still pending), total spending reached $897.5 million. This figure encompasses direct shelter operations, housing assistance exits, and related support services. For context, FY24 spending totaled $894 million, meaning the two-year total exceeds $1.79 billion.
• Cost Breakdowns:
  • Direct Shelter Costs: $758.8 million, including $675.5 million for core shelter operations (e.g., housing sites), $7.4 million for support services, $10.1 million for National Guard payroll (deployed to assist at sites), $5.0 million for the United Way Shelter Safety Net Program, and $60.7 million for Temporary Respite Centers (TRCs) and Clinical and Safety Risk Assessment (CSRA) operations.
  • HomeBASE (Housing Assistance for Exits): $98.5 million, funding rental assistance and rehousing to help families transition out of shelters. Demand for this program has surged five-fold since Governor Healey took office in 2023.
  • Other Services: $40.2 million, covering areas like $4.1 million for TRC life safety improvements, $1.3 million for the Neighborhood Villages Program, $6.2 million for new arrival supports, $1.4 million for municipal room tax reimbursements, $17.6 million for educational aid, $3.0 million for educational support, $5.7 million for public and mental health services, $0.6 million for technical infrastructure, and $0.3 million for work programs.
• Projections for Full FY25 Total: The administration estimates final FY25 costs at $970 million once all bills are processed, with $822 million for direct shelters, $100 million for HomeBASE, and $48 million for other services. This is lower than initial projections, attributed to reduced caseloads and reforms, and FY26 budgeting allocates only $276 million, signaling expected further declines.
• Caseload and Operations: As of July 10, 2025, 3,439 families were in the system (3,330 in bridge shelters and 109 in rapid shelters/TRCs), down from a peak of over 7,600 families a year ago and a 30% drop since January 2025. Of these, 1,220 families were migrants, refugees, or asylum seekers. The system operates across traditional shelters, a few remaining hotels/motels (only 4 active, down from over 100 at peak), three state-funded TRCs (in Chelsea, Lexington, and Norfolk), and one CSRA site (in Revere). The administration is on track to close all hotel sites by summer’s end, with a funded capacity of 4,000 families.
• Average Costs: The weekly cost per family averaged $3,823, based on recent fully billed months. Hotel/motel sites, which are being phased out, could cost up to $300 per night per family.
• Recent Activity (June 26–July 9, 2025): 531 families applied for shelter, but 289 couldn’t provide required verification (with 268 pending review). Reasons for homelessness among current residents include housing not meant for habitation (1,272 families), “other” (823), health/safety risks or threatened eviction (550), eviction (376), domestic violence (315), and smaller categories like natural disasters or leaving teen programs. In the same period, 361 families exited (333 from bridge shelters, 28 from rapid), with average stays of 519 days (bridge) and 121 days (rapid). Exit outcomes included market-rate housing (212), subsidized housing (26), other stable housing (9), and “other” (114). Notably, 53 families exited due to reaching length-of-stay limits.

The report has drawn criticism from fiscal watchdogs like the Massachusetts Fiscal Alliance, which labeled the system “failed” and called the spending “insulting” to taxpayers, especially amid other state funding shortfalls (e.g., inability to fund $100 million for court-appointed attorney pay raises, leading to a work stoppage). They urged urgent reforms to prioritize working families. The Healey administration, however, highlights the cost reductions and caseload drops as successes from recent changes, projecting “hundreds of millions” less spending in FY26.