The Delores Project, a small but high-impact Denver nonprofit that runs a 24/7 shelter and supportive apartments for women, transgender, and nonbinary people, says looming budget changes could undercut its ability to keep people housed. Leaders warn that expected cuts would likely hit case management, meals, and mental health supports, the very services staff say help clients make the jump into permanent housing. All this is unfolding as both city and federal funding streams sit on the chopping block in decisions expected over the next few weeks.
Nonprofit Sounds the Alarm
As reported by 9News, The Delores Project told reporters Thursday that shrinking funding could force service reductions and jeopardize the “housing wins” the group points to as proof its model works. Staff says they are especially worried about what happens if grants and city contracts tighten at the same time, leaving fewer people to handle the intensive housing work. Their anxiety echoes warnings from other local providers that capacity could drop just as demand for services stays stubbornly high.
Proven Results and What Is at Stake
The Delores Project’s FY24 annual report and local coverage highlight solid numbers: about 42% of shelter exits went to stable or permanent housing, and the supportive housing program saw roughly 94% retention, according to reporting by Denver North Star. Staff says those results depend on intensive case management and enough frontline workers to help residents secure IDs, vouchers, and landlord agreements. Organizers warn that cutting staff or reverting to a nightly-only shelter model would almost certainly erode many of those gains.
Budget Cuts Behind the Squeeze
City officials are wrestling with a multimillion-dollar shortfall, and Mayor Mike Johnston’s proposed 2026 budget outlines program trims and strategic restructurings that would reduce some homelessness spending, according to Denver7. The plan calls for closing certain non‑congregate sites and redirecting money toward permanent housing, a move the administration frames as prioritizing long-term exits from homelessness. Advocates counter that this shift does not replace the day-to-day services nonprofits provide and could leave serious gaps during the transition period.
Fundraising and What Comes Next
The Delores Project has been scrambling to plug holes left by lost federal grants and has rolled out new fundraising pushes in response to recent cuts, organizers told Rocky Mountain PBS. That reporting notes the shelter may need to cut six staff positions and fall back to an overnight-only model if the funding gap is not closed. The nonprofit is urging donors to help buy time while the city’s budget debate plays out.
Denver City Council will take up the mayor’s plan in upcoming hearings that will determine which cuts actually land, and advocates say they will push hard to preserve frontline supports that generate housing exits. As that fight unfolds, Delores Project leaders say a mix of short-term donations and community pressure on councilmembers could be the difference between keeping services intact and rolling back the hands-on work that has helped dozens move each year indoors, per Denver7.
