Myth or Fact: "The City of South Portland placed thousands of unhoused Mainers and asylum seekers into South Portland hotels during COVID-19 and pay for these stays."

Recently we’ve seen some misinformation spread online claiming that the City placed and paid for hundreds or thousands of unhoused Mainers and asylum-seekers into hotels during COVID. This is false. 

We estimate 95% of families and individuals placed in South Portland hotels between 2020-2024 were placed by the City of Portland, the State of Maine, or local social service agencies. These entities – NOT the City of South Portland – paid for these hotel stays, primarily using federal and state funds.

We've also heard concerns about how the City has increased spending on social services through our General Assistance (GA) program. GA is a state program that provides rental assistance, food assistance, and other “last resort” help for those whose income is below a certain threshold. Providing GA is NOT optional, it is an assistance program that all Maine towns and cities are required to provide under state law. If someone presents to any Maine community and meets the income eligibility requirements, that town or city MUST provide that person/family with assistance. Recognizing the financial burden this law places on communities, the State of Maine reimburses towns and cities 70% of GA costs.

Municipalities across Maine are seeing more and more need, which is why in part legislation has been submitted to increase the State reimbursement from 70% to 90%. South Portland is no exception. The number of GA applications has increased from 835 in 2016 to 1,734 in 2024. After State reimbursement, the City’s GA expenses have increased from $123,598 in FY16 to $330,515 in FY24 (we project that number to decrease to around $260,000 in FY25, and slightly lower still in FY26). The annual cost to the median taxpayer in FY26 for the Social Services budget is $28.01.

Again, GA spending is not optional, it is required by the State and the City cannot refuse to provide assistance to those who meet the minimum criteria.

For more details on the City's Social Services budget, view the budget document on our website and watch the budget presentation from the Social Services Director at the April 22, 2025 Council workshop.