Council Adopts FY2027 Budget Substitute After Barnes‑Fund Amendment Falls

The Metropolitan Nashville Council approved the FY2027 budget ordinance (BL2026‑1377) as substituted after extensive floor debate over priorities and an unsuccessful amendment to redirect grocery‑tax savings into the Barnes affordable‑housing bond fund.

Budget Chair Tunes presented a substitute that reallocates $8.5 million of existing city resources to fund a set of priorities identified during the budget process. Councilmember Evan Siegel offered an amendment that would have reallocated the grocery tax reduction dollars into Barnes to bring annual bond funding closer to the $30 million floor the Unified Housing Study identifies as the minimum needed to meet the city’s housing goals. Siegel argued Council has the revenue but has chosen not to prioritize Barnes at the required scale: “We have the money to do it. We’ve just chosen not to do it.”

Opponents of the amendment—including Councilmembers who supported the grocery‑tax reduction—said the Barnes fund is only one tool among many needed to address housing and emphasized the substitute already increases housing investments. Councilmembers referenced other programs in the substitute (revolving loan funds, eviction assistance and pilot programs) and warned that removing grocery relief would reduce immediate aid for struggling households.

After debate, the Evan Siegel amendment failed on a voice vote; a late‑filed clerical correction that slightly increased Barnes funding also failed. The substitute and the bill as substituted passed on voice votes and will move forward in the FY2027 ordinance process.

What’s next: Implementation of approved substitute allocations will proceed under the Finance Department; housing advocates will continue to press for higher Barnes bond appropriations in future budget cycles.