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Mayor O'Connell proposes half‑cent grocery tax cut and highlights housing, transit and small‑business investments
Summary
In the 63rd State of Metro address Mayor Freddie O'Connell proposed cutting the local grocery tax by a half‑cent, pledged the largest-ever local general‑fund housing investment and touted transit gains including a fare‑free Journey Pass that has logged more than 1 million trips in six months.
Mayor Freddie O'Connell used Nashville's 63rd State of Metro address at Nissan Stadium on Friday to unveil a set of proposals and highlights aimed at lowering household costs and accelerating housing and transit investment.
O'Connell proposed reducing the local grocery tax by a half‑cent as part of his budget recommendation this week, saying the change would ‘‘lighten the load’’ for working families, seniors and single parents. He said Metro departments will be asked to make modest budget reductions to offset lost revenue while the city will fully fund its employee pay plan.
The proposal is one of several budget and policy priorities the mayor outlined. O'Connell said the city funded or preserved nearly 3,000 affordable homes in the past year — a record for Nashville — and that his recommended budget will include the largest general‑fund contribution yet to the Barnes Housing Trust Fund. He also announced a pilot revolving‑loan program intended to seed a durable affordable‑housing bond.
On transit, O'Connell said the "Choose how you move" program has increased service and ridership and pointed to corporate partnerships with WeGo Ride; he also highlighted Journey Pass, a three‑year fare‑free program for many social‑service clients, noting that riders had taken more than 1 million fare‑free trips in just over six months.
The mayor announced new business supports including a Legacy Business Program to recognize long‑running local businesses and provide grant opportunities, an expansion of property investment incentives, and a forthcoming workforce advancement grant to help employees cover tuition and materials.
O'Connell also touted early‑childhood investments: an expansion of Begin Right (distributing Dolly Parton's Imagination Library books to child‑care centers) and recent legislation to fast‑track child‑care permitting to make opening centers easier. He said council approval is expected on additional steps to ease access to home‑based child care.
Throughout the address the mayor framed the announcements as part of a broader civic strategy to make Nashville more affordable and inclusive, and he urged private and philanthropic partners to join government investments. He acknowledged private commitments such as a $20 million investment by Fifth Third Bank in North Nashville while saying government cannot solve housing alone.
The special Metro Council meeting was opened by Vice Mayor Angie Emmerich Henderson and included musical performances and remarks from community leaders. A motion to adjourn was made and the meeting concluded with a closing blessing.
What happens next: The grocery tax reduction and budget items will be submitted as part of the mayor's recommended budget for Metro Council consideration; separate council procedures and votes will determine what the council adopts.
