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New Orleans ‘ homeless services budget could drop from $11.1M to $6.4M in 2026.

Cuts may cause layoffs, stalled rehousing, and return of encampments.

Rapid rehousing and case management funding would fall by $3.89M.

Officials exploring grants and tourism revenue to offset shortfall.

The New Orleans Office of Homeless Services and Strategies is bracing for deep reductions next year that could trigger layoffs, stall rehousing and send encampments back into commercial corridors, according to department leaders.

Director Nate Fields said the department’s 2025 budget of about $11.1 million would fall to $6.41 million in 2026, a $4.68 million decrease.

Personnel funding would shrink from about $1.25 million to $461,000, while the fund that pays for rapid rehousing and

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