Phoenix Budget Boosts Housing, Homeless Aid

Phoenix City Council approved a fiscal 2026-27 budget on May 19 that puts new city money into homelessness services, affordable housing and childcare as pandemic-era federal support runs out. The vote was 9-0, according to the city. The package includes $18.4 million to maintain homelessness efforts previously backed by American Rescue Plan Act money, $6.6 million for the Phoenix Housing Trust Fund and $5 million for childcare affordability. ### Why did Phoenix need to add local money now? The American Rescue Plan Act had been paying for a range of homelessness and heat-relief programs in Phoenix since 2021, according to KJZZ and city budget materials. Those federal funds are set to expire at the end of 2026, leaving the city to decide whether to replace them with local dollars. (phoenix.gov) Phoenix said the $18.4 million allocation will keep key services operating through the next fiscal year. The city said that money will support shelter operations, heat-relief services and a new master lease program aimed at preventing housing insecurity. ### Where is the homelessness money going? The $18.4 million line item is meant to maintain programs that had relied on federal relief money. (kjzz.org) KJZZ reported that the funding will keep the city’s Safe Outdoor Space downtown homeless shelter and its 24-hour seasonal heat-relief site running through the next fiscal year. (phoenix.gov) City budget officials described the spending as part of a broader effort to prevent homelessness and stabilize housing as other federal supports tighten. In budget language cited by KJZZ, Phoenix said flexible assistance was intended to help low-income residents facing housing instability, food insecurity and recent reductions or restrictions in federal funding. (kjzz.org) ### What does the housing allocation actually do? The budget adds $6.6 million to the Phoenix Housing Trust Fund, bringing the fund’s total resources to $15 million, according to the city and KJZZ. Phoenix said the money is intended to expand affordable housing production and speed development timelines. Councilwoman Ann O’Brien said the trust fund lets Phoenix waive some fees for affordable-housing projects and pay for pre-approved housing plans so developers can start work faster. “We have no time to waste,” O’Brien said, according to KJZZ. (kjzz.org) ### Why is childcare part of the same budget fight? The adopted budget includes $5 million for childcare affordability, which Phoenix said is aimed at helping families access and keep high-quality childcare as costs rise. (phoenix.gov) The city grouped that spending with other family-support measures, including $3.15 million for flexible emergency financial assistance. (kjzz.org) Mayor Kate Gallego said in a city release that the budget “takes meaningful steps to help families afford the basics” and invests in affordable housing and shelter while cutting the property tax rate. Shannon Clancy, chief executive of St. Vincent de Paul, said the housing and homelessness funding was vital for families choosing between rent and food. (phoenix.gov) ### How was the budget put together? Phoenix said the approved plan followed months of budget work, including 12 public budget hearings and hundreds of resident comments. The city manager’s proposed budget, presented for review earlier in May, projected a general fund surplus of $162.5 million and recommended using part of it for council priorities, employee compensation and a reserve for fiscal 2027-28. (phoenix.gov) The city said public safety still accounts for 63% of the general fund budget even as the council added new spending on housing and family services. Phoenix also said the adopted budget cuts the property tax rate. ### What happens next? June 17 is the date Phoenix has set for final legal adoption of the fiscal 2026-27 budget, according to the city’s Budget and Research Department. (phoenix.gov) Until then, the May 19 council action stands as the policy approval for the spending plan that city officials say will carry homelessness programs, housing initiatives and childcare support into the next fiscal year. (phoenix.gov)