The New Orleans City Council voted unanimously to adopt an amended 2026 operating budget after recognizing additional revenue streams the council said reduce the need for deeper cuts. The council approved an omnibus revenue amendment and then adopted the ordinance providing the city’s 2026 operating budget as amended.

Council leaders said the amendment reflects revenue the council believes can be recognized for 2026 without immediately raising taxes. Chair remarks outlined multiple sources that together amounted to about $74 million in new or newly recognized funds, including reclassified ARPA dollars, expected reimbursements from the Sewerage & Water Board, proceeds tied to the Wisner settlements and strengthened parking enforcement and collections.

The vote to approve the omnibus revenue amendment was recorded as 7 yeas, no nays; the operating budget ordinance as amended also passed 7 yeas, no nays. The clerk read the ordnance digest describing the operating budget and the related omnibus amendments that adjust both revenues and appropriations in the general fund and the priority multiyear projects fund.

Why it matters: Council members said the amendment restores funding for essential services and many nonprofit programs that would otherwise face reductions. Council offices emphasized preserving sanitation funding, 911 (Orleans Parish Communications District) allocations and locally prioritized nonprofit grants while managing a shortfall the council attributed to an earlier budget collapse.

What the council recognized: Staff presentations and legal advice documented the individual pieces the council relied on to justify recognizing revenue for next year: (1) a staff- and consultant-supported revenue estimate close to $800 million; (2) reclassification and reallocation of a portion of ARPA funds (subject to federal rules); (3) a $29.5 million Sewerage & Water Board reimbursement the city expects to receive by Dec. 31, 2026; (4) cash payments and projected installments tied to recent Wisner litigation settlements; and (5) parking enforcement and collection improvements projected to yield roughly $13.5 million.

Quotes: Chris Johnson, counsel for the city in Washington, said of ARPA funds: "If the funds were obligated by 12/31/2024 ... that can be done. That is legal." Randy Hayman, executive director of the Sewerage & Water Board, told councilmembers, "Of the number $29,500,000, we agree with that number with the understanding ... we are in agreement that the $29,500,000 dollars in reimbursement we should receive by that time."

Public comment and next steps: More than a dozen public speakers urged the council to preserve the Housing Trust Fund and community programs supported by ARPA and other one-time funds. Council leaders pledged monthly or frequent budget reviews, said technical corrections will be authorized to fix typographical or mathematical errors and noted that additional recognized revenue would be used to restore further cuts where possible.

The council also authorized a technical-adjustment motion permitting the clerk to make necessary typographical, mathematical or structural corrections to the adopted budget documents; that motion passed 7 yeas, no nays. The council indicated it will continue monitoring revenues and may consider amendments if new funds are verified.