Residents urge council to offset federal housing cuts as city budget hearing opens

The Lexington Urban County Council opened a public hearing May 8 on the mayor's proposed fiscal 2026 budget, and residents urged council members to respond to large federal cuts to housing programs and to use the city budget to expand street-safety and emergency rental assistance.

Phoenix Berry, a District 6 resident, told the council the federal cuts to housing programs would hurt low-income residents and seniors. “Vouchers for rental assistance for low-income communities and our seniors are being cut,” Berry said. “Continuum of care services are also being cut, and the HOME Investment Partnerships Program is also being cut.” Berry said those reductions add up to “around like 43%” in federal cuts cited in their remarks and asked the council to consider local funding for emergency rental and relocation assistance in the FY 2026 budget.

Alice Hilton, a District 11 resident and member of Living Streets Lexington, praised a proposed $20 million Complete Streets line in the mayor's budget but said she was concerned that $14 million of that was allocated to paving rather than projects such as sidewalks and bike infrastructure. “You could build a lot of sidewalks with $14 million,” Hilton said, and urged the city to treat paving projects as opportunities to improve safety and walking and biking connections to schools.

The legal notice read before the hearing said a summary of the mayor's proposed budget and documents are available on the city website and at public facilities. Council members did not take action at the hearing; the session was a formal opportunity for public comment required under the Urban County Government charter and Kentucky Revised Statutes.

Why it matters: Residents said the combination of federal reductions and an ongoing housing shortage increases risk of displacement and homelessness and argued the city should consider targeted, local investments now. Advocates also framed Complete Streets funding as a safety and equity priority that can support school travel and reduce traffic harm.

What the speakers asked the council to do: Berry urged the council to add or prioritize city funding for emergency rental assistance, relocation assistance and other housing supports in FY 2026. Hilton asked the administration and council to allocate more of the Complete Streets budget to sidewalks, bike infrastructure, and street redesigns rather than routine paving.

Next steps and context: The mayor's proposed budget will proceed through the council's appropriation process; members may amend or reallocate before final adoption. Council and staff did not announce any immediate changes at the hearing.