This is more than a housing crisis – it’s a crisis of dignity and opportunity.

That’s why increasing investments in housing and homelessness prevention in the Illinois FY26 State Budget is so critically important. These investments directly translate to supporting more Illinoisans facing housing instability — whether they are experiencing homelessness today or trying to avoid it tomorrow.

The Forum, alongside more than 200 advocacy partners, supports a $100 million expansion of the HOME Illinois initiative, a comprehensive plan to bring Illinois closer to functional zero homelessness, meaning homelessness is rare, brief, and nonrecurring. Homelessness affects all communities across Illinois. These investments are especially crucial for Latinos, who represent approximately 19% of the state’s population, and for who housing challenges are most evident in the elevated rates of doubling-up and growing instances of sheltered and unsheltered homelessness.

According to the most recent HUD Point-in-Time (PIT) Count, over 10,000 Latinos across Illinois experienced homelessness on a single night, a number that is likely undercounted due to issues like “doubling up,” where families stay temporarily with others and go uncounted in official data. In Illinois, many Latino families are living this reality every day— that’s why the proposed increases across several programs matter and here is how they will make a difference:

$40 million for Emergency and Transitional Housing (ETH)
Emergency housing provides immediate, short-term shelter for people who are homeless or at risk of becoming homeless. Transitional housing is a bridge between emergency and permanent housing. There is an estimated 5,379 emergency shelter bed deficit. This projected shortage of shelter beds will result in more people living on the streets and in unsheltered conditions. Increasing funding will provide more resources to keep families off the streets and in stable living conditions as they transition to more permanent housing.

$10 million for Street Outreach
Increased funding for street outreach would expand efforts to directly engage with those experiencing homelessness, including Latinos who may be hesitant to seek help due to fear of discrimination or language barriers, or simply because they don’t know that help is available. This increased funding would mean more connections to support and resources.

$4 million for Shelter Diversion
Shelter space in Illinois is in short supply. It is more important than ever to allocate more funding to strengthen shelter diversion efforts that help individuals and families avoid entering the homelessness system.

$5 million for Homelessness Prevention
Additional funding for homeless prevention will provide more crucial resources that keep individuals and families safely housed, including rental and mortgage assistance, utility assistance, case management, and other supportive services. Rising rents and the threat of evictions disproportionately affect Latino renters in Illinois. According to a late 2024 U.S. Census Bureau survey, over 30% of Latino renters reported being somewhat likely or very likely to face eviction within the next two months. Increased funding for homelessness prevention is necessary to keep people out of shelters or from having to enter a doubled-up living situation.

$11 million for Supportive Housing Programs
Increased funding will support long-term housing solutions, including addressing trauma and mental health challenges, for low-income individuals and families facing homelessness.

$30 million for Additional Homelessness Priorities
This funding will fill gaps in services, such as rapid rehousing and scattered-site permanent supportive housing. Based on estimates by Illinois’ Office to Prevent and End Homelessness, there is a shortage of more than 10,000 rapid rehousing beds and a close to 11,000 permanent supportive housing beds. Increased state investments to fill in these gaps are vital – not only to prevent people from living on the streets, in cars, or in shelters, but to also connect them with supportive services that address the root causes of homelessness.

While Illinois is taking big steps forward, we cannot ignore actions at the federal level. Proposed cuts to the Department of Housing and Urban Development (HUD) programs threaten to roll back progress in states like ours. Reduced federal funding means less support for affordable housing development, fewer housing vouchers, and tighter shelter resources – pressures that hit all communities, including Latinos.

Criminalization of homelessness has also been a focus of recent federal activity. In Grants Pass v. Johnson, the U.S. Supreme Court ruled that local governments may arrest or fine people experiencing homelessness for sleeping outdoors – even when no safe shelter options are available. In response, Illinois lawmakers have introduced House Bill 1429, an effort led by partners Chicago Coalition to End Homelessness and Housing Action Illinois, which would prohibit municipalities in the state from criminalizing homelessness.

These priorities represent more than just line items in a state budget, they are lifelines for thousands of working families trying to keep roofs over their heads and for those currently experiencing homelessness, a pathway to safety, dignity, and stability.