State legislators passed a bipartisan $165 million housing bill on Wednesday afternoon, providing $40 million for emergency rental assistance and $100 million in bonds to support the maintenance and development of affordable homes.
A small fraction of the funding – $4 million – is marked for permanent supportive housing, a strategy to prevent homelessness that has come under renewed threat from the U.S. Department of Housing and Urban Development.
Permanent supportive housing is just what it sounds like: Affordable housing paired with programs aimed at ensuring residents remain housed, without a time limit.
Chris LaTondresse, President and CEO of Beacon Interfaith Housing Collaborative, called it “the invisible backbone of our community response to homelessness,” providing homes for thousands of Minnesotans who struggle with conditions like substance use disorder and mental illness, or who might otherwise find themselves in a shelter, a jail cell, an emergency room or on the street.
But as HUD weighs massive shifts to spending, some worry the program’s low profile has worked against it.
HUD’s proposed budget for fiscal year 2027, released on April 3, calls for the complete elimination of the grant program that provides much of the funding for supportive housing programs. The budget would, instead, allocate the dollars largely to Emergency Solutions Grants, which focus on temporary measures like emergency shelters and time-limited housing assistance.
The move comes as no surprise to the nonprofits who provide most of Minnesota’s supportive housing – they’ve been sounding the alarm since the administration’s sudden changes late last year to how funds from that same grant program could be used. In March 2026, a federal judge ruled those early efforts to be unlawful based in part on their surprise timing. But providers expect new funding guidelines, to be released by June 1, to derail their work again.
In the wake of Operation Metro Surge, nonprofit housing providers joined a long list of causes advocating for state support. They faced long odds to convince state legislators to help close what could be a $48 million gap. But without it, they said, homelessness statewide could surge.
In an interview prior to Wednesday’s vote, State Sen. Lindsey Port, DFL-Burnsville, who chairs the Senate’s Housing and Homelessness Prevention Committee, called supportive housing funding a top priority. She worried that the program’s relative obscurity meant that some of her fellow legislators might not realize what could happen if it goes away.
“Some of these people (who depend on supportive housing) will be at risk of dying,” she said.
‘A generational federal retreat’
LaTondresse calls supportive housing “the best bang for your buck” if you want to prevent homelessness.
Minnesota Housing, a state agency addressing housing security across the state, currently funds 6,843 site-based units, with another 751 under a scattered site model, where units are placed individually instead of in a larger development. Other supportive housing units in the state receive funding from local and philanthropic sources.
In addition to providing housing at reduced rents, supportive housing programs can offer case management services, healthcare, transportation and more. Some are focused on residents with alcohol or drug use disorders, while some aim to provide financial or independent living skills.
And it simply works, providers say. Scott Cordes, the chief operating officer at Project for Pride in Living, said more than 90% of their supportive housing households maintain stable housing for two years or more.
It’s why LaTondresse is frustrated by what he calls a “generational federal retreat” on the model.
The funding issue has centered on “Continuum of Care” groups, regional bodies formed under HUD that strategize and implement plans around reducing homelessness.
Minnesota has 10 CoCs that, collectively, received about $48 million in 2024. About 55% went to permanent supportive housing, while 27% went to “rapid rehousing,” a similar program that provides more temporary support.
Under the proposals that were eventually deemed unlawful, the Trump administration looked to cap funding for supportive housing at 30%, with the rest directed at measures like shelters and transitional housing.
While it won’t be clear exactly what the next round of CoC funding will look like until HUD publishes the Notice of Funding Opportunity later this month, it’s expected to have similar restrictions.
HUD Secretary Scott Turner’s department said on April 30 that “harm reduction” and “housing first” programs – under which many supportive housing units would be categorized – have failed “at great cost to those suffering on our streets and to working American taxpayers.” The department’s proposed 2027 budget calls for eliminating CoCs altogether.
Currently, federal funding makes up a considerable portion of many providers’ budgets. For PPL, Cordes says $1.9 million is in jeopardy, or about a third of the organization’s budget for supportive housing.
“Think about a third of that funding going away,” Cordes said. “It means that we have to drastically change and reduce the amount of services that we’d be able to provide.”
Port, who called supportive housing “the most effective tool that we have to move people from chronic homelessness out of it,” told MinnPost that strategies like emergency rental assistance and funds to build affordable homes perhaps saw more agreement among her colleagues because supportive housing is less visible.
“It’s an inside baseball game that housing folks know about,” Port said, adding that next year, the legislature will need “a much larger answer” for the millions of dollars that could be gone for good.
“If we lose those providers, we lose those units,” Port said. “And they’re not coming back.”
‘The entire thing could collapse’
Should supportive housing see its funding stripped, the Twin Cities would take a hit: Of the nearly 7,000 units funded by Minnesota Housing, more than 80% of them are located in the metro area.
But while metro housing providers may be able to lean on a larger portfolio of projects – and perhaps find some outside funding – Port said residents in Greater Minnesota could feel a more acute impact, since many of those programs are more singularly dependent on federal funding.
Catholic Charities Twin Cities manages about 1,100 units of supportive housing – 900 that the organization owns and operates, and another 200 through connections with landlords.
They help house people like Patrick, who preferred to go by his middle name. Following time spent in a local shelter, Patrick has lived in supportive housing for four months. “I’ve really, really found this to be a great stepping stone,” he said, “just an all-around good place.”
He said he’s been working with Emerge, a Minneapolis nonprofit that helps people find jobs, and that he’s already applied for several. If supportive housing services weren’t available, he said he’d likely go back to a shelter.
“I don’t even want to think about that scenario,” he said.
Keith Kozerski, Catholic Charities Twin Cities’ chief program officer, said his organization covers “the entire continuum of housing,” from diversion programs to emergency shelters to supportive housing. It’s a birds-eye view of addressing homelessness, Kozerski said, which he compared to a Jenga tower.
“If any one of those pieces gets pulled out of the puzzle,” he said, “the entire thing could collapse.”
County Donegal offers an extraordinary range of accommodations perfectly positioned along the Wild Atlantic Way, from seaside spas and beachfront retreats to restored castles, Georgian country houses, golf resorts, and bustling town hotels. These curated selections cater to mature travelers seeking everything from wellness escapes and golf getaways to family adventures and romantic hideaways amid dramatic cliffs, golden beaches, and Gaelic culture. Each property blends authentic hospitality with prime locations for exploring Donegal’s rugged coastal beauty.
Shandon Hotel & Spa, Portnablagh
Photo Credit: Margarita Ibbott.
The Shandon Hotel & Spa sits above Sheephaven Bay in Portnablagh, within easy reach of Marble Hill Strand, Dunfanaghy, and Horn Head along Donegal’s Wild Atlantic Way. Superior sea-view rooms are spacious and contemporary, with large windows framing the bay, king beds, robes, and practical touches like tea-and-coffee stations and reliable Wi-Fi that suit longer wellness-focused stays.
Guests come for the wellness offerings: a Nordic spa with an outdoor hot tub, cold plunge, thermal experiences, and signature treatments such as the Shandon Goddess Sculpt, plus an indoor pool and 24-hour gym. Dining spans from casual to refined at Beats Bar, Jonjo’s Bar, and Marbles Restaurant, all taking advantage of the coastal panoramic views for leisurely breakfasts, sunset drinks, and evening meals. Read my Hotel-Scoop Hotel review of the Shandon Hotel & Spa. 📍 View on Booking.com: Shandon Hotel & Spa
Arnold’s Hotel, Dunfanaghy
Photo Credit: Margarita Ibbott.
Arnold’s Hotel anchors the main street of Dunfanaghy, a lively seaside village overlooking Sheephaven Bay, minutes from Dunfanaghy Beach and the dramatic Horn Head drive. A member of the prestigious Original Irish Hotels, this long-running, family-owned property works well as a base for exploring Ards Forest Park, Doe Castle, and nearby golf while offering village pubs, cafés, and shops on the doorstep.
Rooms range from traditional to updated, many with bay or village views, and prioritize comfort and practicality for walkers, golfers, and road-trippers spending most of the day outdoors. A proud member of the Donegal Food CoastInitiative, the restaurant and bar showcase local produce and seafood, offering guests a convivial spot to end the day with an enjoyable meal without leaving the hotel.
The Sandhouse Hotel occupies a frontline position on Rossnowlagh’s Blue Flag beach between Ballyshannon and Donegal Town, placing surfers, walkers, and scenic-drive fans directly on the Wild Atlantic Way. Its setting offers uninterrupted Atlantic views and easy access to south Donegal highlights, Slieve League, and Donegal Town’s heritage sites.
Sea-view rooms lean into classic country-house character, spacious rooms, antique-style furnishings, and big windows that pull in Donegal Bay and the sound of the surf. The on-site Marine Therapies spa specializes in Atlantic seaweed baths and marine-based treatments, complemented by fireside lounges and coastal dining in the Glasshouse Restaurant, Durnish Bar, and the seasonal Surfers Bar right by the shore. Read a full hotel review by Margarita Ibbott on Hotel-Scoop – Sandhouse Hotel and Therapies 📍 View on Booking.com: Sandhouse Hotel
Lough Eske Castle, Lough Eske
Photo Credit: Margarita Ibbott.
Lough Eske Castle, This award-winning hotel and spa resort, occupies 43 acres of woodland on the shores of Lough Eske, approximately 5 km from Donegal Town at the foot of the Blue Stack Mountains. There is a variety of accommodation options: Courtyard Rooms, Garden Suites, and the classic sumptuous luxury of the Castle Suites. The grounds are the perfect place for a walk through the garden, soaking in the outdoor hot tub, swimming in the indoor pool, or exploring the property on the complimentary bikes.
Inside, guests find spacious, traditionally styled rooms and suites with modern comforts, as well as CARA Organic Beauty Spa, which offers massages and body treatments suited to longer, indulgent stays. Multiple dining options—from fine dining to more relaxed bar menus—make it a self-contained retreat for couples and special-occasion trips.
Photo Credit: Keryn Means via Twist Travel Magazine.
Harvey’s Point sits on the shores of Lough Eske, 11 miles (about eight kilometres) outside Donegal Town, surrounded by the Ardnamona Woods and framed by the Blue Stack Mountains along a quiet lakeside road. Originally a 19th-century cottage purchased from the Harvey brothers, the resort retains its traditional manor feel with modern amenities. The 64 spacious rooms boast views of the lake or mountains, with marble bathrooms featuring large soaker tubs or showers. For those looking for a more economical option or traveling with friends, a room at The Lodge is perfect for individuals or groups, with 13 rooms reminiscent of a cruise ship cabin and all the amenities offered to resort guests.
Lakeside Restaurant serves fine dining with panoramic lake views, while Harvey’s Bar & Terrace offers casual all-day fare, or guests can enjoy Irish whiskeys, inventive craft cocktails, and local beers in its sophisticated Octagonal Bar. Guests can partake in lakeside hikes, the private gardens on the grounds, or take a ‘painting break’ with local art teacher Conal McIntyre. EV charging stations and complimentary parking are available on-site, and nearby are bicycles, hiking, and fishing activities.
Rockhill House Estate spans 100 acres of woodland and meadows on Donegal’s hills, 30 minutes from Derry and Glenveagh National Park, providing total seclusion amid the Donegal Gaeltacht. This historic family sanctuary serves as a gateway to the Wild Atlantic Way and Causeway Coastal Route.
The estate offers 19 main-house bedrooms and 8 Coach House suites, The Wellhouse Spa, hawk walks, bee safaris, and The Church restaurant for immersive luxury escapes. Guests seeking elegant country house charm, wellness treatments, and unique estate activities find perfect refuge here.
Rosapenna Hotel & Golf Resort commands a clifftop position on Sheephaven Bay’s dunes near Downings, established as one of Ireland’s premier golf destinations along the Wild Atlantic Way. Its beachfront setting offers dramatic coastal vistas and easy access to north Donegal’s scenic drives.
Rosapenna is the proud home to three championship links courses: Sandy Hills Links, the iconic Old Tom Morris Links, and the newest course – St. Patrick’s Links. This golf resort delivers beachfront rooms, a full spa, whirlpool, steamroom, sauna, an indoor heated pool, and bay-view dining for golfers and luxury seekers. Active couples and championship players appreciate the exceptional golf calibre combined with seaside relaxation.
Redcastle Oceanfront Golf & Spa Hotel. This luxury property is perched on the shores of Lough Foyle at the edge of the rugged Inishowen Peninsula, north of Moville and close to Malin Head- Ireland’s northernmost point along the Wild Atlantic Way. This waterfront location offers sweeping views and easy access to Inishowen’s dramatic scenery, fishing villages, Greencastle fort, and pristine beaches.
The 4-star resort combines a private 9-hole parkland golf course, Cara Organic Beauty Spa with Voya seaweed treatments, indoor pool, and fitness facilities. Recently refurbished ocean-view rooms and suites blend modern elegance with local touches. Recently awarded Ulster Hotel Restaurant of the Year 2024 at the Yes Chef Ireland Awards, The Edge Restaurant offers an exceptional meal with stunning views of Lough Foyle. The more casual Captain’s Bar and Grill, and The Deck are great places to relax after a round of golf or a spa treatment.
Mill Park Hotel, Donegal Town
Photo Credit: Keryn Means via Twist Travel Magazine.
Mill Park Hotel sits just outside historic Donegal Town, roughly a 15-minute walk from landmarks like Donegal Castle and the Old Franciscan Abbey. It works as a practical hub for exploring Donegal Bay, Slieve League Cliffs, and the Wild Atlantic Way, while still allowing you to stroll into town for shops and restaurants. While this hotel hosts many conferences and business travelers, it can also accommodate families with 2 to 3 children in the same room, offering accommodations with a queen and two twin beds, or two double beds.
One hundred and twenty rooms are tastefully furnished with flat-screen TVs, modern bathrooms, and, in some cases, views overlooking landscaped gardens, balancing comfort and value for couples, families, and groups. A leisure centre with heated adult and children’s pools, steam room, turbo jet jacuzzi, and gym, along with delicious cuisine in the bright and modern design of Chapter Twenty Restaurant, or darker, moody Granary Restaurant, gives guests resort-style conveniences without leaving town, and the quiet of a countryside stay with complimentary parking.
Clanree Hotel sits on Letterkenny’s outskirts, overlooking Donegal Bay, just minutes from the town centre and serving as the gateway to the Wild Atlantic Way’s northern coastal stretches. Guests appreciate its convenient location for beach drives, Fanad Head, and Glenveagh National Park while enjoying urban shopping, dining, and the Cathedral of St. Eunan.
This 4-star property offers reliable comforts across 120 en-suite rooms, an indoor pool, a jacuzzi, a steam sauna, and a full Leisure Club for unwinding after nearby sightseeing. The hotel offers free parking, family rooms, conference facilities, and dining at McGettigan’s Bar & Restaurant, making it ideal for business stays, multi-generational road trips, and events.
Castle Grove Country House Hotel, near Letterkenny / Lough Swilly
Photo Credit: Nancy Brown.
Castle Grove Country House Hotel sits on a 250-acre private estate on the shores of Lough Swilly, down a long tree-lined avenue between Letterkenny and Rathmullan. This family-run Georgian manor offers a tranquil, away-from-it-all base that’s still convenient for exploring north Donegal beaches, horseback riding on the dunes of Bundoran, touring the Fanad peninsula, and golf courses along the Wild Atlantic Way.
Inside, the house exudes period charm: antique-filled bedrooms, open fires in drawing rooms, and a cozy bar. They are a proud member of the prestigious Blue Book and participants of the Donegal Food Coast Initiative (leaning heavily on produce from its own walled garden). Castle Grove appeals particularly to food-focused travelers, and guests favouring country-house stays over contemporary hotels. Read a full review by Nancy Brown on Hotel-Scoop.com 📍View on Booking.com: Castle Grove Country House Hotel
Allingham Arms Hotel, Bundoran
Photo Credit: Allingham Arms Hotel.
Allingham Arms Hotel sits right across from Bundoran’s Main Beach on the southern edge of County Donegal’s Wild Atlantic Way, just steps from the town’s surf breaks and busy promenade. This classic seaside spot works equally well for festival-goers, water sports fans, and coastal walkers who want to be close to the action but still enjoy those Atlantic views.
Inside, a traditional Irish hotel feel meets contemporary 4-star comforts, with rooms ranging from simple doubles to Nashville-themed spaces and a new “Fizz Suite.” Known for hosting Ireland’s top country music acts year-round, it offers easy access to Bundoran’s Rougey Walk and Fairy Bridges—perfect for families, couples, and adventure seekers.
Photo Credit: Sharon Anderson via Rathmullan House.
Rathmullan House graces Lough Swilly’s shores in peaceful Rathmullan village, steps from a 3km sandy beach on the Fanad Peninsula’s edge. Set amid 7 acres of wooded gardens, it offers seclusion while remaining convenient for Inishowen Peninsula drives and Wild Atlantic Way coastal highlights.
Rathmullan House graces Lough Swilly’s shores in peaceful Rathmullan village, steps from a 3km sandy beach on the Fanad Peninsula’s edge. Set amid 7 acres of wooded gardens, it offers seclusion while remaining convenient for Inishowen Peninsula drives and Wild Atlantic Way coastal highlights.
Ballyliffin Lodge & Spa overlooks the Atlantic near Malin Head on the Inishowen Peninsula, positioning guests at Ireland’s northernmost tip for dramatic Wild Atlantic Way extremes. The coastal setting proves ideal for coastal hikes, birdwatching, and exploring remote headlands and sandy beaches.
Ocean-view rooms, a full spa menu with seaweed therapies, and coastal cuisine emphasize wellness and rejuvenation for adventure travelers. Couples seeking remote luxury and active explorers appreciate the marriage of rugged scenery with sophisticated relaxation.
Jackson’s Hotel sits beautifully along the River Finn, right across from the tranquil Drumboe Woods. This award-winning family hotel is the perfect hub for exploring Donegal’s natural beauty. Spend the day hiking, sightseeing, or discovering hidden gems across the county, then return to cosy firesides and hearty meals in the evening. The hotel’s traditional pub, The Thirsty Trout, is renowned for serving some of the best pints of Guinness in the area. With its unbeatable location and warm hospitality, Jackson’s Hotel is your gateway to Donegal adventures, all from the convenience of one central town.
This long-established 4-star, family-run hotel leans into classic leisure-break comforts, with an indoor pool, hot tub, sauna, and gym for downtime after a day’s driving. Guests appreciate the hearty breakfasts, relaxed Garden Restaurant, and river-view lounges. It features award-winning vegan and gluten-free options, proudly named Vegetarian/Vegan Menu of the Year at the YesChef Awards 2025. Jackson’s Hotel is a practical choice for multi-generational trips and event stays.
Opened by the Gallen family in 2000, The Villa Rose Hotel has become one of Donegal’s most cherished spa and dining destinations. Located in the town of Ballybofey, the hotel is perfectly central, making it an ideal base for exploring all that Donegal has to offer – from rugged coastlines to rolling hills and charming villages. Guests at The Villa Rose can indulge in exquisite fine dining at Fara’s Restaurant, unwind with rejuvenating spa treatments, or relax in the thermal suite.
The appeal lies in stylish rooms and the award-winning Spa, which features a thermal suite, hydrotherapy bath, foot spas, and a menu of body and facial treatments aimed at couples or friends on a pampering break. The Forge Bar is one of the most popular places to eat, drink, and socialise in Ballybofey, Co. Donegal. Villa Rose as a polished alternative to traditional country hotels.
For a more historic and scenic experience, An Chúirt Hotel, a beautifully restored 1830s guesthouse turned courthouse, overlooks the majestic Errigal Mountain. Ideal for hikers, families, or anyone wanting to experience authentic Donegal life, it is located in the heart of the Gaeltacht, where the Irish language is still spoken daily. The hotel’s location offers a peaceful escape while keeping you connected to the culture and stunning landscapes that make Donegal so special. Overlooking the Clady River with views of Mount Errigal and nearby lakes, placing guests close to beaches and walking routes in the northwest.
This 4-star country-house style hotel offers attractively decorated rooms with TVs, tea-and-coffee facilities, and modern bathrooms, backed by a health club with an indoor pool, fitness centre, and spa facilities. Its location at the foot of Mount Errigal makes it a strong choice for hikers and visitors wanting a deeper experience of Irish-language culture and traditional music.
Perched on the edge of Letterkenny, Mount Errigal Hotel offers views toward Mount Errigal, with easy access to Letterkenny Town Park, the golf club, leisure centre, and the town’s lively dining scene. It works perfectly as a central hub for Donegal adventures, with Glenveagh National Park and Derry just a short drive away.
The 4-star hotel delivers generous family rooms, a 20m swimming pool, sauna, steam room, jacuzzi, gym, and conference spaces for active groups seeking relaxation. Dining at Heather Restaurant and the vibrant bar cater to road trippers balancing coastal adventures with comfortable evenings. Coming in March: a full hotel review by Nancy D. Brown on Hotel-Scoop.com.
McGrory’s of Culdaff sits in the heart of Culdaff village on the Inishowen Peninsula’s northeast coast, a short drive (about 15 km) from Malin Head and within easy reach of one of Ireland’s most beautiful Blue Flag beaches. This family-run hotel makes an authentic base for exploring Ireland’s northernmost coastline, with scenic drives and coastal walks right on the doorstep.
From here, you can easily visit Malin Head, Doagh Famine Village, Dunree Fort, Mamore Gap, and the market town of Carndonagh, all within a comfortable day-trip distance. Inside, you’ll find a cozy property with 17 individually styled bedrooms, a strong focus on local, seasonal produce at The Oyster Catcher, and a long-standing reputation for live music at the Front Bar with warm Inishowen hospitality. Guests come for the intimate atmosphere—part country inn, part music venue—which suits visitors, music lovers, and anyone seeking an authentic experience without a chain hotel vibe.
From sea-facing spa suites in Portnablagh and surf hotels on Rossnowlagh Beach to castle stays on Lough Eske and character-filled country houses in the Gaeltacht, County Donegal offers a stay for every style of traveler. Whether you base yourself in a central hub like Letterkenny, hug the Wild Atlantic Way in Inishowen or along Sheephaven Bay, or opt for a romantic lakeside or golf resort, you can pair each hotel with coastal drives, cliff walks, and cultural stops that match your pace.
For mature travelers and slow explorers, the real luxury in Donegal is the combination of dramatic scenery and warm hospitality—lingering over breakfast with sea views, returning to a fireside lounge after a windy cliff walk, or unwinding in a spa after a day on the road. Use this collection of fine hotels and luxury hotel properties as a list of trusted bases across the county, then mix and match a few properties to create your own Wild Atlantic Way itinerary.
Margarita Ibbottis the creator and author ofDownshiftingPRO.com, a travel and lifestyle blog focused on travel to the US, Canada, Colombia, and Europe. This travel website brings unique insight into museums, cultural activities, and luxury accommodations. She loves a good girl’s getaway and traveling with her adult children—family travel but with cocktails. Colombian by birth, Canadian by nationality, she’s here to help others organize their lives and travels.
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