Federal Grant Losses Threaten Stillwater's Homeless Shelter Operations

The Mission of Hope, Stillwater's only homeless shelter and the sole facility of its kind within a 50-mile radius, faces potential reduction of services due to a severe funding shortfall caused by expired federal grants and the end of COVID-related financial support.

The shelter, which serves approximately 300 people annually, needs to raise $240,000 by September 1 to avoid cuts in staff and services.

"We're not sure how we can do that, but we have to look at how we can do the program different. We wouldn't be able to continue like we are," said Jana Nelson, who has served as the shelter's executive director for 19 years.

The funding crisis comes at a critical time for the organization, which became an independent nonprofit in 2020 and fully separated from its previous parent organization in October 2021.

The shelter, which has operated for 37 years, relies on grants to meet its annual budget of approximately $621,000. Federal funding has been part of the shelter's financial structure since 1996, but recent years have seen significant reductions in available grants.

"We used to have a transitional housing grant and we had off-site steward or transitional apartments. HUD quit funding transitional housing," Nelson explains. "We had a separate grant that was permanent housing for veterans. HUD said we're combining all these, we're reducing these all down to one."

The shelter operates with only 12 employees – six full-time and six part-time – who provide comprehensive services to the homeless population in Payne County and surrounding areas.

"If you look at this community and see 300 extra people on the streets a year, it's just not somewhere we want to go," Nelson said.

The Mission of Hope provides emergency shelter with 16 beds in the men's dorm and six beds in the women's dorm. Clients can stay for 30 days and receive food, transportation, laundry facilities, case management, and life skills training.

The facility also offers 10 private transitional housing units with 22 beds for clients or families with children, who can stay for up to two years if necessary, though most transition to permanent housing within six months.

Additionally, the shelter operates a permanent supportive housing program serving up to 10 chronically homeless and disabled clients.

Ellen Ingram, a board member at Mission of Hope, emphasizes the shelter's unique role in accepting families.

"We'll often see moms with kids, even two parents with a child. They've got families here, and they've got rooms that accommodate families separate from the dorms," Ingram said.

The shelter works closely with local law enforcement agencies, including the Stillwater Police Department, Cushing Police, Yale Police, and Perkins Police.

"Stillwater Police Department works so closely with us. If we have an issue, they're here within two minutes. They call us all times of the day and night with people they found on the streets that they need to bring in," Nelson said.

In a statement to The Stillwegian, Stillwater Chief of Police, Chris Hassig noted the importance of homeless services in the community.

"Homelessness is a problem that affects all cities, with Stillwater being no different. While we take action as law enforcement officers when necessary, it is an issue best served by nonprofits and other entities to provide individuals with the services they need to get reestablished in society," Hassig said. "Any reduction in the services provided by our great partners at Mission of Hope would have a negative effect on all of us, and our hope at the Stillwater Police Department is that they are able to secure the funding to help those in need around our community."

The funding crisis is compounded by the expiration of COVID-related financial support, which had temporarily masked the impact of declining federal grants.

"With all the COVID funding, we were able to get close to $400,000," Nelson explains. "Money that we were getting in, we were putting back into savings. At this point we've had to keep dipping into that savings. It's almost gone."

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The shelter also faces additional financial challenges, including frozen FEMA funds that previously helped pay utility bills of approximately $2,000 per month for electricity.

Mission of Hope is now reaching out to the community for support. The organization is sending out approximately 800 letters asking for donations and working with United Way to spread awareness about their funding crisis.

"We met with the United Way yesterday," Nelson said. "I know that they're going to do everything they can to support us."

The timing is particularly critical because the shelter faces a "blackout" period with United Way from September 1 to mid-November, during which they cannot conduct fundraising activities.

"We're in a crunch. We've got to be able to pay bills and make payroll over the next few months," Nelson said.

Ingram believes the Stillwater community will respond to the shelter's needs.

"This community has shown so much support for Mission of Hope without much effort on our part to tell the community how badly we depend on them," Ingram said. "I think if we can just get the word out there of reminders of what we're doing, 300 people and the lives that are being changed ... we all feel like the community is going to respond."

The shelter's board is meeting weekly to address the crisis, examining federal grants and looking for areas to cut costs while maintaining essential services.

"We're going to look at all the programs, we're going to get the grants. We're trying to find new grants," Nelson said. "If there's ways that we can cut without affecting the homeless that we're trying to serve, that's my goal. We don't want to hurt the homeless."

On Aug. 9, 2025 the shelter will hold its annual fundraiser at the Stillwater Community Center. Parrot Head Paradise is a Jimmy Buffett Themed beach party with drinks, dinner, a silent auction and music performed by the Val Gladden Band.