The government of Newfoundland and Labrador increased its spending on private shelters and hotels by $4.4 million in 2025-26 compared to the previous fiscal year, as revealed by data from CBC News. This 55% rise in expenditure aligns with the growing number of shelter users. Social Supports and Well-Being Minister Chris Tibbs expressed concern about the underfunding of vulnerable individuals, stating that the funding allocated to 106 Horizons was insufficient, especially in light of the surge in homelessness due to the pandemic.
Official documents show that the government allocated $12.4 million for private shelter operators and hotels in 2025-26, accommodating 1,335 individuals, whereas the previous year saw over $8 million spent on housing 1,181 people. Prior to the pandemic, the government mainly utilized private for-profit shelters and one hotel for emergency housing, primarily in St. John’s. However, post-pandemic, the utilization of various accommodations spread across the province, from urban centers to rural areas.
Recent data indicates a shift towards fewer hotels and more spending on select for-profit operators. Notably, Ben Said Services Ltd. received approximately $4.3 million, while Riverwalk Hotel in Mount Pearl and Hotel Corner Brook collectively received $5.6 million. Additionally, the Labrador Inn in Happy Valley-Goose Bay was allocated nearly $800,000. Over $620,000 was distributed among 30 hotels province-wide, with payments based on invoice dates rather than service provision years.
Non-profit shelters like the Wiseman Centre and the Gathering Place, with a total of 254 beds, were not included in the spending report. Furthermore, funds allocated to Horizons at 106, set to close soon, were not factored into the disclosed figures. Minister Tibbs emphasized the government’s commitment to assisting those in need, highlighting the $23 million budgeted for the emergency shelter system in the current fiscal year.
In a recent interview, Tibbs criticized the previous government’s management of Horizons at 106, a transitional housing facility near St. John’s International Airport. The Auditor General’s report highlighted procurement policy breaches and deficiencies in program planning and implementation. Despite disagreements with the report’s methodology, the facility’s operators are preparing for its closure, with proposals submitted for replacement plans.
Looking ahead, the government aims to reduce reliance on hotels for shelter and explore alternative housing solutions, such as repurposing former schools. The ongoing transition signifies a strategic shift towards more sustainable and effective support for individuals experiencing homelessness.