New Jersey’s Homelessness Budget: A Small Step in a Huge Gap

The state has put $25 million on the budget for people without homes, and another $11 million for a veterans program. These amounts show that officials see the problem, but they fall far short of what data says is needed. In 2024, the state’s system could house about 38, 000 people and was running near full capacity. A year later, after federal funds ran out, that number dropped to 26, 000 – a loss of more than 30 percent. The gap has widened: in 2024, roughly 5, 400 people were stuck without a permanent place. By 2025 that number jumped to over 16, 000, and projections for 2026 show another 16 to 22, 000 people will join them if funding stays flat. Emergency shelters and street homelessness are expected to double each year under the current plan. The state would need about $345 million a year just to return to 2022 levels, yet the budget offers only about seven percent of that amount. The veterans program gets $11 million, enough to house around 650 veterans each year. That is far below the goal of zero veteran homelessness, which will be announced soon.Housing costs in New Jersey are high: a one‑bedroom unit can cost up to $2, 500 a month. In counties where outreach workers operate, rents are close to $1, 900, while vouchers top out at $1, 768. Even with assistance, many people cannot afford a place. The state’s leaders must stop treating the $25 million as a cure for a problem that requires hundreds of millions. They should make this amount a permanent baseline and increase funding over several years to match the data. Accountability is key: the system should report quarterly on how many people are housed, not just how much money is spent. Protecting the Affordable Housing Trust Fund for its intended purpose – building and keeping homes affordable – is also essential. Frontline workers are already helping people on the streets, but they cannot do enough with limited resources. The data shows that without a larger investment, more than 34 000 residents will remain homeless by the end of 2026. A single step is a start, but New Jersey’s most vulnerable need a full plan to get them out of homelessness.