(The Center Square) — 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.