After weeks of public hearings, negotiations, and budget markup meetings, Mayor Jacob Frey and the Minneapolis City Council announced a budget deal. In a 11-0-0-2 vote, the City Council passed the 2026 $2 billion amended budget.

In a joint statement, Mayor Frey and Council Vice President Aisha Chughtai (Ward 10) thanked their colleagues and staff for their dedication throughout the budget process:

“We are grateful to every Council Member and City staffer who worked tirelessly over the past several weeks to get us to this point. Their commitment to collaborative problem-solving and service to our Minneapolis neighbors made this agreement possible. Crafting a budget is never easy, and there are certainly areas of disagreement in this one. But the collective effort from all involved helped us land a budget deal that ensures residents receive city services, protects our workforce, both unionized and appointed, and reflects the values we do share.”

The budget reflects a disciplined, forward-looking approach that prioritizes and protects core City services and maintains strong financial footing without layoffs to City employees. It allows for continued investments in public safety, affordable housing, economic inclusion and good governance. Highlights of the final, agreed-upon budget include:

Community safety and police recruitment

• Supports recruitment to continue rebuilding the MPD, now at more than 600 officers and the most diverse force in city history.
• Prioritizes a full-spectrum public safety system with police, fire, EMS, civilian responders, and violence prevention efforts working together.
• Funds compliance with the federal consent decree and state settlement agreement, including two new positions in the Implementation Unit.
• Sustains 24/7 Behavioral Crisis Response (BCR) services and community-led violence prevention initiatives.
• Supports the administration’s plan to create a new non-fatal shooting task force to increase clearance rates related to non-fatal shootings and improve public safety.

Affordable housing and homelessness response

• Continues the Stable Homes Stable Schools program, keeping thousands of Minneapolis students and families stably housed.
• Includes a commitment to fund emergency housing vouchers for three years without resulting in staff layoffs.
• Continues investments in the Affordable Housing Trust Fund and the Minneapolis Public Housing Authority, putting more apartments and homes to own in reach of more residents.
• Dedicates to support shelter operations.

Climate action and public health

• Advances the Climate Legacy Initiative (CLI), including investments in cleaner energy, green infrastructure, and waste reduction.
• Supports the Zero Waste Plan to move toward the City’s 2030 waste diversion goals.
• Uses opioid settlement funds to launch a Mobile Medical Unit, expand access to Narcan vending machines, and support hospital-based intervention programs for overdose survivors.

Economic inclusion and downtown vitality

• Supports the Ownership and Opportunity Fund, helping Black, brown, and immigrant entrepreneurs build lasting wealth by owning their businesses and properties.
• Funds Vibrant Downtown Storefronts and Nicollet Mall activation, keeping downtown lively and welcoming for residents, workers, and visitors.
• Invests in cultural and commercial districts, including Uptown and Lake Street, through technical assistance and small business support programs.
• Reinstates labor standards co-enforcement funding.
• Provides dance programming in schools, downtown, and at the Cowles Center, which is slated to reopen next year under new operator Arts Nest/Zenon Dance Company.
• Continues outreach and services for vulnerable communities, including immigrants and refugees

Good governance and fiscal discipline

• Generates millions of dollars in savings through vacancy management, scaling back nonessential spending, and prioritizing proven programs.
• Protects City jobs, avoiding layoffs and maintains the City’s AAA bond rating, saving taxpayers millions through lower borrowing costs.
• Budgets responsibly to prepare for potential federal funding reductions amid continued uncertainty in Washington.

The maximum property tax levy is 8 percent, set by the Board of Estimate and Taxation (BET) in September. The City Council approved the levy on Dec. 9.

Watch the City Council meeting from Dec. 16.