Seattle City Council committee passes nearly $9B budget despite looming 2027 deficit

The Seattle City Council’s budget committee passed a nearly $9 billion budget for 2026 on Thursday.

New taxes will help overcome a $102 million shortfall, but outgoing Council President Sara Nelson noted another $140 million gap looms in 2027.

“So a sizable budget challenge remains, and it could turn much worse if the economy deteriorates,” Nelson said.

Seattle budget includes record investments in affordable housing

The 2026 budget includes record investments in affordable housing and rental assistance. According to a news release from the council, $349.5 million will go toward affordable housing, more than five times the amount in 2019.

Meanwhile, $2.5 million will fund increased tenant services, such as outreach, case management, and eviction legal defense. It also gives $11.8 million for new shelters and emergency housing, along with $1.25 million to expand mobile teams for opioid use disorder.

The budget also boosts funding for firefighters and police, with $2.1 million toward an additional 20-person firefighter recruit staff and $385,000 for two new mental health professionals, along with more funding for the Community Assisted Response and Engagement (CARE) team.

Seattle is currently on track to hire around 170 new police officers in 2025 and projects hiring 168 officers in 2026, according to the release.

“The budget that we’re passing today focuses on affordability in the city, addressing homelessness, increasing public safety, building community between one another, and also fiscal responsibility,” Councilmember Dan Strauss said.

The Seattle City Council will take a final vote on Friday.

Contributing: Frank Lenzi, KIRO Newsradio; Julia Dallas, MyNorthwest