Mayor Parker’s 2nd budget includes $2 billion housing plan, public safety & other critical investments 

PHILADELPHIA —  Today, the City’s Fiscal Year 2026 (FY26) Operating and Capital budgets received final approval from Philadelphia City Council, a landmark budget that prioritizes economic growth, housing, public safety, education, and health services for all residents. This budget reflects a commitment to ensuring a vibrant and equitable future for every resident of Philadelphia.

Mayor Cherelle L. Parker’s $6.8 billion ‘One Philly, 2.0 Budget’ builds on critical investments made in her inaugural One Philly Budget, allocating resources across five key pillars: public safety, clean and green initiatives, economic opportunity, housing, and education.

“At a time of real uncertainty in our country, we need strong leadership and unity,” exclaimed Mayor Cherelle L. Parker. “Our new $6.8 billion budget makes substantial, bold investments in the programs and services we need most to make Philadelphia the safest, cleanest, and greenest big city in America, with access to economic opportunity for all. We are proud of this budget and excited to deliver on our promises to the people of Philadelphia.”

“I want to thank my fellow Councilmembers and Mayor Cherelle L. Parker for their due diligence in negotiating and reaching an agreement on the new Fiscal Year 2026 Operating and Capital Budgets and new Housing Opportunities Made Easy Plan,” Philadelphia City Council President Kenyatta Johnson (Second District) said. “This is a balanced budget that reflects the needs of the citizens of Philadelphia. In a city with rich history and resilient people, no one should be forced to sleep on the streets, live in unsafe conditions, or choose between rent and putting food on the table. We must invest in long-term housing solutions—supporting both affordable rental units and pathways to homeownership—to ensure that Philadelphia remains a city where everyone has a place to call home.”

Among the highlights in the budget bills:

H.O.M.E. Initiative: The Housing Plan for 30,000 Homes
Mayor Parker also secured a historic $800 million in funding to support the Housing Opportunities Made Easy (H.O.M.E.) Initiative — Philadelphia’s comprehensive plan to build, preserve and restore 30,000 units of housing. This unprecedented investment significantly expands funding for key existing housing programs, while also launching new initiatives such as the One Philly Mortgage Program, aimed at making homeownership affordable and accessible. The FY26 Budget also increases funding to the Tangled Title Fund to assist residents in resolving homeownership issues.

Several zoning bills were also introduced as part of the H.O.M.E. Initiative, with the goal of breaking down barriers, streamlining processes, and expediting the creation of  housing units across our city. These bills, which include legislation to eliminate parking minimums in certain zoning designations and create a new zoning type that will allow for duplexes “by right,” are a necessary step in the right direction and will support the creation of more housing units.

Public Safety Investments

The budget allocates $1 billion in operating and capital over the Five-Year Plan (FYP) and Six-Year Capital Program, including:

  • $67 million for a new Forensics Science Center.

  • $30 million in antiviolence grants for community-based and grassroots organizations.

  • Funding for body-worn cameras for Police Officers and Prison Correctional Officers.
  • $30 million towards Vision Zero to improve safety for pedestrians, bicyclists, and motorists, the highest amount ever included in a City Capital Program for Vision Zero.

Continued investments in the wellness ecosystem, including:

  • $264 million in operating funds to operationalize the Riverview Wellness Village facilities with medical care, social services, workforce development, and other on-site programming.
  • $75 million in capital funds, which will increase capacity at the Riverview Wellness Village to 640 residents once complete.

Investing in Our City Workforce

The City has executed one-year extension agreements with its municipal unions for FY25. These extensions expire on Monday, June 30, 2025. To support the negotiation of fair and fiscally responsible multi-year collective bargaining agreements, the Five-Year Plan includes an unprecedented $550 million Labor Reserve over five years.

Unprecedented Tax Reform & Investment in Small Businesses

The FY26 Budget allocates $210 million towards bold tax reforms aimed at enhancing Philadelphia’s competitiveness and attracting and growing businesses that will create jobs with family-sustaining wages. The FY26 Budget includes the following initiatives:

  • Historic tax investments that will reduce both the Net Income and Gross Receipts components of the Business Income and Receipts Tax (BIRT), as well as the Resident and Non-Resident Wage Tax. This marks the first time in 17 years that the City will simultaneously reduce both parts of the BIRT and Wage Tax. The effort is part of a multi-year strategy to eliminate the Gross Receipts portion of the BIRT and cut the Net Income portion in half within seven years after the Pension Fund becomes fully funded.
  • An addition of nearly $40 million in FY26 for grants and technical assistance through the Jumpstart Business program will provide support to small businesses throughout the city.

Clean and Green Initiatives

The budget allocates $853 million in new operating and capital over the FYP and Capital Program to continue ongoing work that focuses on keeping our neighborhoods clean and vibrant, including:

  • Continued investments in twice-weekly trash collections and the district-based Residential Cleaning program.
  • $350 million allocated through FY31 in the Capital Program for paving streets and installing ADA ramps.
  • Nearly $11 million for Philadelphia Parks and Recreation to fund turf and landscape maintenance, chlorine for public pools, supplies for recreation center, youth sports funding, a lighting campaign, and efforts to address illegal dumping.
  • $8.5 million allocated to sustain year-round cleaning of vacant lots.
  • $4.6 million dedicated to highway maintenance and beautification, which includes Mural Arts projects.
  • $2.7 million for installing planters along commercial corridors to enhance street aesthetics and improve traffic safety.

Economic Opportunity for All

The budget allocates $626 million in operating and capital over the FYP and Capital Program to support access to economic opportunity for all.

In addition to unprecedented tax reform and investment in small businesses, key investments include:

  • Nearly $40 million in FY26 to provide grants for small businesses and technical assistance to businesses paying tax for the first time and jumpstart small business creation and growth in the city.
  • $14 million through FY31 in the Capital Program for expansion of the Schuylkill River Waterfront.

Educational Investment

In a significant investment in education, the City will allocate $147 million in operating and capital over the FYP and Capital Program, including:

  • An additional $12 million to the Philadelphia School District in FY30, increasing the portion of the Real Estate Tax going to schools from 56 percent to 56.5 percent, plus additional revenue to the District from an increase to parking meter rates within Center City and the Center City fringe. Combined with the millage shift from FY25, that will increase the annual amount going to the District by $36 million.

  • $10.9 million allocated to expand the Extended Day/Extended Year initiative, increasing the number of participating schools from 25 to 40 schools and adding over 5,000 new slots for a total of more than 12,000 slots.

  • Enhanced support for the Community College of Philadelphia, bringing the total investment to $54 million in FY26 and $270 million over the next five years.

  • $5 million dedicated to the  Philadelphia Cultural Fund in FY26, highlighting the City’s commitment to bolstering educational and cultural initiatives.

2026 Preparations

The budget adds additional investments in 2026 events, bringing the total commitment from the General, Transportation, and Capital Funds to nearly $120 million. These funds are supporting the City’s preparations for the large-scale special events planned for 2026 and will ensure that the celebrations reach neighborhoods throughout the city. These 2026 investments include:

  • Over $70 million to support essential department operations, including public safety, in anticipation of these significant events.
  • $45 million in contributions to partner organizations to enhance special event preparedness.
  • To further accommodate an influx of visitors, an additional $500 million is designated for airport capital investments, underscoring the City’s commitment to fostering a successful and memorable 2026.

Investing in Mass Transit

The FY26-FY30 Five Year Plan and FY26-FY31 capital program include significant investments in mass transit system allocating $716 million in operating to support SEPTA operating expenses over the fiscal years 2026 through 2030 and $76 million in capital investments for SEPTA through FY31. This funding is crucial to maintain and improve a reliable and accessible public transit network that connects residents to jobs, schools, and essential services across Philadelphia. Moreover, SEPTA’s effective operation is vital for reducing traffic congestion and lowering carbon emissions, contributing to a more sustainable urban environment.

The increased City funding is expected to help SEPTA leverage additional state funds, ensuring broader regional benefits and enhancing the overall quality of life for residents by promoting economic growth and accessibility throughout the area.

 

###