Portland seeks bailout from neighboring counties after audit reveals $151K in lost gift cards

The revelation comes after Portland Mayor Keith Wilson asked neighboring counties to help with a financial bailout following mismanaged funds intended for the city's ongoing drug-fueled homeless crisis.

The health department dishes out gift cards to encourage people to seek health treatment, participate in focus groups, and express gratitude to volunteers. According to county policy, staffers must record when and where gift cards are distributed, and the records must be filed within five business days, the Oregonian reported.

An internal investigation launched in September revealed that the health department was unable to locate recordings for 131 gift cards issued between mid-2021 and mid-2025. The review included 629 county gift card purchases and other cash-like items, such as transit tickets that are also doled out as incentives.

"My expectation is that all County funds are accounted for and used for their intended purpose," Multnomah County Chair Jessica Vega Pederson told the paper. She offered praise to the agency for initiating its own investigation into the matter.

"This gift card discrepancy was discovered because of work initiated by the department, which is exactly what I want to see in terms of good practices around monitoring programs," she continued. "There are additional audits in progress around this issue, and I expect that their results, together with the work already underway, will result in stronger training and processes."

Several potential factors were attributed to the issue, according to a memo sent by Interim Health Finance and Business Management Director Derrick Moten. This includes confusion surrounding how to report correctly and who was responsible for the reporting.