After two years and a half-billion dollars spent, Chicago Mayor Brandon Johnson announced Monday that the city’s migrant mission would effectively end on December 31. The city’s migrant housing system will close as we know it, and migrants and homeless Chicagoans will have to compete for available bed space under an umbrella system designed to meet the housing needs of anyone in need.
Johnson’s announcement marked the start of the “One System Initiative,” a plan designed by the city and months in the making. During the transition, everyone with housing needs will have to fight for the 6,800 beds available, compared to 15,000 at the height of the migrant crisis. Currently, more than 5,000 people are housed in the city’s migrant housing system.
Johnson said the new plan would provide a more “equitable and cost-effective” approach to finding housing for those who need it.
Mayor Johnson’s announcement Monday came less than two weeks before the scheduled release of his spending plan. The city is currently facing an estimated $1 billion budget shortfall.
Since August 2022, more than 50,000 migrants have arrived in Chicago. More than 5,000 people are currently in the city’s shelters.
To date, the city has spent more than $541 million on the migrant mission, with $308 million of that going to Kansas-based Favorite Healthcare Staffing, a private company whose contract with the city runs through April of next year.
Asked by NBC 5 Investigates if the timing of Monday’s announcement was motivated by the city’s looming deficit, Johnson responded, “We’re doing it because it’s the right thing to do.” It’s the right thing to do. We will arrive at the financial results. consequences, but I want people to know that we stand for our values. »
NBC 5 Investigates was first to report last month that Johnson approved a $100 million contract extension for Favorite. At the time, Johnson avoided our questions by saying the city saved taxpayers $200 million by renegotiating Favorite’s contract and ceding control of two shelters to different providers. His office later emailed a statement saying Favorite’s pay increase was due to a back payment owed to the company.
When asked by another reporter about the timing of the decision and whether people might end up on the streets, Johnson acknowledged that money played a role.
“The harsh reality is we can do what we can afford. We’ve been stressed to the limits,” Johnson told reporters.
Among the major changes in the transition plan:
- The City will eliminate 30-day shelter extensions based on the “Registration for Public Benefit” extension currently available.
- Limit first-time shelter placement in the landing zone to only families and single individuals who have been in the country for less than 30 days.
- Reduced landing zone opening hours from 8 a.m. to 8 p.m. starting November 1.
- Landing zone and state-run reception center closed on December 31.
Starting in the new year, those in need of housing will need to call 311.
Many variables remain unknown. It is unclear how much additional 311 staffing will be needed or budgeted for as part of the transition plan. Beatriz Ponce de Leon, deputy mayor for Immigrant and Migrant Services, told NBC 5 Investigates the plan is to move away from preferred healthcare staff as they shift shelter operations to other providers.
It is not clear to whom these contracts would be awarded.
It’s unclear how that would work, as Favorite has a contract with the city until April of next year.
A Favorite spokeswoman said she was checking.
