The city of Houston has officially approved its Fiscal Year (FY) 2026 budget, directing approximately $7 billion to cover operating and capital improvement costs for the coming year. The new fiscal year begins July 1.
While developing the budget, Mayor John Whitmire laid out four priorities guiding the decision-making process:
- Supporting public safety investments to improve collaboration, addressing systemic department operations issues and recruiting and retaining talent.
- Instituting programming and additional investments into the city’s infrastructure, mitigating dangers presented by natural disasters and ongoing issues related to aging infrastructure, air quality and flooding.
- Streamlining and optimizing government performance.
- Increasing quality of life for all residents.
The city’s efforts to enhance public safety will primarily revolve around increasing the number of available personnel and strengthening existing policing programs. Additional investments will go toward equipping the police force with crime-fighting technologies, providing better mental health training for first responders and increasing rehabilitation programs for integrating former offenders back into the community.
Houston’s infrastructure must be bolstered to better serve the needs of the community while preparing for future inclement weather. Road and water infrastructure is featured as one of the budget’s prime concerns, allocating an additional $184 million to street and drainage improvement projects. The city will also prioritize traffic congestion reduction and pursue climate adaptation and mitigation initiatives.
Goals for improving government efficiency and transparency revolve around identifying expenditure reductions and new recurring revenue sources. The city will continue to reduce long-term liabilities, better manage grant money and partnerships while promoting the development and growth of businesses owned by underrepresented communities.
The city will improve quality of life for residents by creating environments conducive to provide all residents with equal treatment and opportunity. This includes championing policies and laws that highlight diversity and equity. Other initiatives that take budget priority include affordable housing; the provision and maintenance of activity, parks and recreation centers; and support for healthy, livable neighborhoods.
Before final approval, council members submitted 71 amendments to the budget for consideration. Only fourteen of those were approved, including:
- Drainage and ditch improvements.
- Funding kennel cleaning at the animal shelter.
- Hiring additional animal enforcement officers.
- Creating an investment fund addressing health benefits and life insurance for retired city employees.
Mayor Whitmire’s administration faced a considerable $200 million deficit for the coming year. To make up for the projected loss, the upcoming budget had $75 million removed from the $3 billion general fund. These cuts will primarily affect the departments for parks, libraries, health and neighborhoods.
While the budget has been officially approved, the city’s five-year Capital Improvement Plan (CIP) is still in development.
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