Portland politics is heating up as Councilor Angelita Morillo has suggested redirecting millions from the city’s homeless encampment cleanup program to help refugees instead.
Morillo, who lives outside downtown in a luxury high-rise, wants to take roughly $4.3 million from the Impact Reduction Program and use it to provide food, housing, and other services for the city’s immigrant population.
The plan would cut about a third of the program’s current fiscal year budget and also reduce campsite sweeps—a move that has sparked a heated debate among city leaders and residents alike.
Morillo’s Background Shapes Her Proposal
Morillo, a Paraguayan immigrant who has personally experienced homelessness, told reporters that the goal isn’t to ignore the unhoused but to rethink priorities.
“Short-term sweeps don’t solve the problem,” she said in an interview with Portland Mercury.
Her approach aims to focus resources on longer-term support for refugees arriving in the city.
Her proposal comes just months after she unsuccessfully attempted to reallocate $428,000 from the program toward rent assistance.
Now, she’s back with a bolder plan that could change how Portland allocates social services.
Mayor Wilson Sounds the Alarm
Portland Mayor Keith Wilson has publicly warned that Morillo’s plan could have serious consequences for neighborhoods.
In a Sunday newsletter, he told residents that a 75 percent cut in services could leave streets littered with biohazards and force layoffs of up to 100 workers.
“This would be devastating for every neighborhood,” Wilson wrote, urging locals to attend Wednesday’s council meeting to voice their concerns.
The mayor’s office emphasized that the Impact Reduction Program, which has a current budget of $14.7 million, is essential for cleaning hazardous campsites and abandoned RVs.
Homelessness in Portland Reaches New Highs
Portland’s unhoused population is growing at an alarming rate.
A recent report from Portland State University estimates 12,034 people are homeless across the tri-county area, a 61 percent increase since 2023.
Clackamas, Multnomah, and Washington counties are all grappling with the surge, highlighting the scale of the crisis.
While the exact number of refugees living in Portland is unclear, immigrants make up 13.5 percent of the city’s population, higher than the state average of 10 percent.
This demographic fact underpins Morillo’s argument that funds could be better spent supporting refugees.
Tensions Over Short-Term Solutions vs. Long-Term Support
Morillo has criticized Wilson’s focus on moving people from the streets into shelters as a short-term fix.
“It’s a temporary solution that drains resources,” she said, arguing that programs supporting refugees could have longer-lasting impacts.
Wilson, on the other hand, insists that immediate intervention is essential to protect neighborhoods and maintain livability.
The city’s $8.6 billion budget, approved in June, set aside $16 million for encampment removal programs, including state funding.
Federal Intervention and Community Involvement
The debate is further complicated by recent federal attention.
In September, former President Donald Trump sent National Guard troops to Portland, citing safety concerns at federal buildings.
However, a federal judge recently ruled that the deployment didn’t meet legal requirements, following a three-day trial.
Meanwhile, Mayor Wilson has urged residents to volunteer and donate to local emergency shelters, warning that inaction could invite more drastic federal intervention.
“Let’s work together by volunteering and donating, and prove heavy-handed tactics are not needed in our city,” he wrote in a mass email to 17,000 residents.
Portland at a Crossroads
The clash between Morillo and Wilson reflects broader questions about how Portland addresses humanitarian crises on its streets.
With homelessness at record highs and a growing refugee population, the city must weigh immediate public health concerns against long-term support strategies.
As council members prepare to debate the proposal, Portlanders are watching closely.
The decision could reshape how the city balances aid for its most vulnerable residents—both the unhoused and newly arrived immigrants.