Utah lawmakers plan to fund governor’s homelessness overhaul — if cities, counties pay up

Utah legislative leadership carved out $43.6 million to pay for Gov. Spencer Cox’s pivot toward targeting criminality within the chronic homeless population, framed as a test case for Cox’s proposed central shelter.

In a tight budget year, the recommendation represents a win for what Cox called his top funding priority. It also signals a shared vision among lawmakers for Cox’s goal of achieving compassion by ensuring accountability.

“I don’t know if we’ve ever seen the Legislature show a vote of confidence like this,” said Rep. Tyler Clancy, Cox’s incoming homeless coordinator. “I see a huge sign of support that we’re all rowing in the same direction.”

Marking another shift in policy, $26.4 million of the funds — for current emergency housing and future shelter capacity — will be contingent on local governments matching the investments dollar-for-dollar.

This is the first time lawmakers have conditioned homelessness money on a 1:1 match, reflecting House Speaker Mike Schultz’s refrain that cities and counties need to “step up” amid record homelessness.

What’s the central campus?

In 2025, after spending hundreds of millions on homeless services since 2020, and creating an office of homeless services, Utah recorded its highest levels of homelessness — including chronic homelessness — ever.

This accelerated a departure, initiated by Cox and Clancy, away from the “housing first” approach Utah modeled until a decade ago, toward one that emphasizes long-term, and potentially involuntary recovery programs.

Cox’s mission to “make Utah the worst place in the country to camp on the street — and the best place to get help,” is embodied by the proposed “transformative” central campus likely located in North Salt Lake.

The project is estimated to cost $75 million to build, and around $30 million each year to operate. Cox had initially hoped to secure a second round of $25 million to begin construction and another $20 million to run it.

But plans for the enormous campus — which would pair 1,300 beds with onsite drug and mental health treatment — are on hold while President Donald Trump’s revamped federal grant program is held up in court.

For now, Cox’s young homelessness policy team hopes to leverage local police data and a network of innovative non-congregate shelter programs to provide a proof of concept that the central campus will work as intended.

What are high utilizers?

Appropriators set aside $26 million in onetime, and $17.6 million in ongoing money to be split between three pillars of Cox’s homelessness strategy: addressing high utilizers, mental health resources and emergency housing.

“High utilizers” refers to individuals, often chronically homeless — or, homeless for over a year with addiction or mental illness — who take up a disproportionate share of shelter space and law enforcement responses.

“These are individuals who are unlikely to exit homelessness on their own without a tremendous amount of support,” said Devon Kurtz, the public safety policy director at the Cicero Institute.

Between 2024 and 2025, around 1,000 individuals, or 12% of Salt Lake City’s arrested population, accounted for 45% of all police activity, with an average of 11 arrests each and more than 23,000 total charges.

While most individuals who enter Utah’s homeless services system quickly exit, these repeat offenders overuse taxpayer-supported programs and need a different kind of intervention, according to Schultz.

“Nobody’s holding them accountable for the crimes that they’re committing. It is a revolving door,” Schultz said. “But at the same time, we’ll make sure the resources are there for those that want to get the help that they need.”

How will the money be spent?

The Legislature appears ready to put its money where its mouth is: the one-time budget recommendations constitute entirely new, not reallocated money. On Friday, the Executive Appropriations Committee proposed:

• $1 million in one-time funds to expand the Other Side Village, a tiny home community in west Salt Lake City.
• $4.6 million in ongoing and $2.7 million in one-time funds to focus current programs on high utilizers.
• $1.1 million in ongoing, and $7.8 million in one-time funds to expand intensive residential mental health beds.
• $9.4 million in ongoing, and $5 million in one-time spending to fund different styles of new shelter space.
• $2.5 million in ongoing, and $9.4 million in one-time spending to fund emergency shelters and temporary housing.

Unlike past years, however, funding for new and current shelter space “may only be expended with a 1:1 match from local governments,” according to the intent language written by legislative budget chairs.

This new requirement comes after the Legislature pressured Salt Lake City to overhaul its approach to homelessness last year. Salt Lake City Mayor Mendenhall told the Deseret News the city is already doing its part.

“The city currently invests millions of dollars addressing homelessness, homeless-related issues, deeply affordable housing and public safety,” the statement said. “Our contribution is clear and we’re happy to articulate that throughout this process with our legislative partners.”

How will the Legislature support counties?

Making the funds conditional on municipal buy-in is not an attack on cities and counties, according to Clancy. It is a recognition that for programs to be successful, state and local governments need to be on the same page.

Michelle Flynn, director of The Road Home shelters, agreed this will encourage a “shared commitment” to addressing homelessness as a state, while hopefully allowing local communities to take a unique approach.

At the same time, Flynn underscored how important it is for funding of emergency shelter space to “remain stable and dependable” because it is a “life-saving service” for extreme weather during the summer and winter.

“It is also important to clearly define what qualifies as a match, since cities and counties have different funding structures and generally do not have a dedicated homelessness funding source,” Flynn said.

On Friday, a House committee unanimously approved HB596, which would open up emergency winter shelter space on days when the temperature drops below 25 degrees Fahrenheit. The current threshold is 18 degrees.

The bill, sponsored by Rep. Steve Eliason, R-Sandy, would also create the Homeless Services Restricted Account to help counties provide homeless services, maintain shelter facilities and operate different kinds of shelters.

Correction: The article previously incorrectly included $23 million for a “low barrier shelter” in it’s total funds recommended for homeless services. Those funds were reappropriated from a previous year.