New law to stabilize emergency shelter funding takes effect

On September 24, a new law introduced by Sen. Rachel Talbot Ross, D-Portland, went into effect after being passed by the Legislature earlier this year. LD 698, “An Act to Sustain Emergency Homeless Shelters in Maine,” provides a critical funding boost to Maine’s emergency homeless shelters,

“Our shelters are on the front lines of Maine’s housing crisis, and for years they have been asked to do more with less,” said Sen. Talbot Ross. “This law delivers critical funding to stabilize emergency shelter operations and ensure that people experiencing homelessness have a safe place to turn. It is an important step forward — but we must recognize it is just a step. Maine needs sustained, long-term investments in shelter and housing to truly meet the need.”

Maine’s state funding for emergency shelter operations has remained flat at $2.5 million since 2016, even as demand and costs have surged. A 2024 MaineHousing study found that the average cost to operate a single shelter bed is $102 per night. The current state subsidy covers just $7.16 of that cost, forcing shelters to rely on unstable outside funding.

While the original bill proposed $5 million in ongoing funding each year, the Legislature amended the measure to provide a one-time investment of $4.47 million for the upcoming fiscal year.

Without this funding, shelter providers risk reducing services or closing their doors, leaving more people unsheltered and increasing pressure on emergency rooms, law enforcement and other public systems.

As non-emergency legislation, LD 698 took effect on September 24, 90 days after the First Special Session of the 132nd Legislature adjourned. It was signed by Gov. Mills on July 1, 2025.

Sen. Talbot Ross is serving her first term in the Maine Senate, representing part of her hometown of Portland and Peaks Island. She serves as the Senate Chair of the Agriculture, Conservation and Forestry Committee and sits on the Judiciary Committee.