Detroit City Council adopts 2026 fiscal year budget minutes before midnight
About 10 minutes before midnight Tuesday, the Detroit City Council approved the city's annual budget after several delays.
Council members approved the fiscal 2025-26 $3 billion budget — of which $1.5 billion makes up the General Fund — boosting several departments and initiatives, including nearly $20 million for the Detroit Department of Transportation to hire drivers, boosting funding for the Charles H. Wright Museum, eviction protection, community violence intervention, disability affairs and housing-related investments. Overall, the city's General Fund budget grew by $102 million from last year's budget.
Mayor Mike Duggan proposed the budget in February, which holds nearly $500 million in reserves, comprised of $150 million for the city's Rainy Day Fund and $350 million in the Retiree Protection Fund set aside for pensions. Council members underwent dozens of deliberations for a month to decide where funding shifts may be necessary.
Members cut a $5 million subsidy out of the Detroit Land Bank Authority, dropping from $10 million last year. Officials justified cuts due to the Land Bank holding an unassigned $31 million fund balance, further explaining the entity can maintain its properties and services without the city's additional funding. The council also cut $5 million in one-time funding for the Construction and Demolition department for blight activity.
The city also has $14.5 million in leftover American Rescue Plan Act (ARPA) money, which needs to be spent by the end of 2026. Council members dedicated $5 million of it to address homelessness, which includes emergency shelters, street outreach, focused case management and the Homelessness Response System. The remaining $9.4 million will be split among the nine council members to spend on ARPA programs of their choice.
Other budget adjustments include:
$2 million for bus shelters.
$2 million for the Charles H. Wright Museum; along with $975,000 in one-time capital funding for the Detroit Historical Museum.
$500,000 for eviction defense outreach.
$3 million for Community Violence Intervention initiatives.
$534,788 to fund six investigators to address backlog and new cases.
$400,000 for the Office of Disability Affairs.
$1 million to the Housing Trust Fund to develop and preserve affordable housing.
$2 million for home repair programs.
$308,593 to increase the Board of Ethics' budget.
$500,000 for the GOAL Line Detroit Program to increase quality education access.
$300,000 to clean 1,000 alleys across the city
$326,244 to add a manager of investigations and audit position in the Office of the Inspector General.
$220,000 for three inspectors within the Buildings, Safety, Engineering and Environmental Department.
$146,000 to restore two positions within the Food Code Enforcement Program in the health department.
Councilman Fred Durhal III, who chairs the Budget, Finance and Audit Standing Committee, said this budget adoption led to 'unique challenges' due to resuming pension payments and spending federal ARPA money.
'Despite these tightened financial constraints, City Council worked collaboratively to ensure our highest priorities — like housing, public safety, transportation, infrastructure, and neighborhood investments — remained funded. Through discipline, transparency and cooperation, we've responsibly aligned our resources with the needs of Detroiters, reinforcing our city's commitment to long-term fiscal stability. I'm confident that by continuing to work together, we will keep Detroit on a path to lasting growth and ensure a brighter future for all residents,' Durhal said in a statement.
Durhal and City Council President Mary Sheffield voted on their final city budget before leaving office at the end of the year, as they both campaign to be Detroit's next mayor in this year's election. Mayor Mike Duggan is leaving the seat to run for Michigan governor as an independent candidate. The two thanked their colleagues, the legislative policy division and others involved in the budget hearing process. Additionally, several council members wished them well on their future endeavors.
'I have been inspired by what we have been able to accomplish with respect to ensuring the city's budget reflects the priorities of our residents and the values upon which our great city was built,' Sheffield said in a statement. 'While we certainly haven't been able to meet every need or address every priority, our closing resolution is illustrative of our commitment and intent to continue to listen to our constituents and work towards creating opportunities, delivering services and addressing the needs of all residents.'
Dana Afana is the Detroit city hall reporter for the Free Press. Contact: dafana@freepress.com. Follow her: @DanaAfana.
This article originally appeared on Detroit Free Press: Detroit City Council adopts $3B budget for 2026 fiscal year
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