Cambridge Council approves FY26 budget, creates $5M federal stabilization fund and adds municipal vouchers amid federal funding uncertainty

The Cambridge City Council on June 2 adopted its fiscal 2026 budgets and a package of capital loan orders after weeks of budget hearings and a lengthy public discussion about federal funding risks.

City Manager Yuan Wong and budget staff told the council the city faces an uncertain federal funding outlook — with potential cuts to Medicaid, HUD programs and other grants — and proposed two measures to reduce exposure: a new municipal supportive-housing voucher pool funded at $1,000,000, and a $5,000,000 free-cash appropriation to create a federal grant stabilization fund to backstop possible federal cuts.

The voucher proposal would create roughly 25 municipal permanent supportive-housing vouchers paired with supportive services and case management. Assistant City Manager (Simonoff) and staff said vouchers would be administered largely through the Cambridge Housing Authority’s processes and the existing coordinated-entry (CCAN) prioritization system; vouchers could be used in scattered-site units and include funds for supportive services rather than being limited to a single on-site facility. Staff told the council they expect the first of the 25 vouchers to be available by late summer, though they cautioned some vouchers tied to the Transitional Wellness Center (TWC) population would not be available in June when TWC closes.

Wong told the council the stabilization fund would be used as a contingency if federal grants to housing and social services are reduced or delayed; staff cited roughly $12 million in federal grants the city tracks across homelessness,…