The Seattle City Council’s Select Budget Committee convened Tuesday for a lengthy session to finalize major amendments to the 2026 biennial budget, a meeting dominated by urgent discussions over a looming federal housing crisis and fierce debate regarding local spending priorities. The committee, which began meeting at 9:30am for public comment, took a lunch break, resuming shortly after 1:30 p.m. and continued past 4:00 p.m., ultimately approving significant reserve funding to guard against federal cuts and passed several key provisos related to infrastructure maintenance and homelessness response.

Federal Funding Crisis Drives Reserve Creation

The meeting was immediately overshadowed by the late-night release of the federal 2025 Continuum of Care (COC) Notice of Funding Opportunity (NOFO) from the Department of Housing and Urban Development (HUD). Council staff and members confirmed the new guidelines pose a grave threat to local housing stability. Historically, King County receives about $67 million in COC funding, with roughly $60 million directed toward permanent housing projects. Under the new NOFO, HUD imposed a major policy shift, capping permanent housing expenditures at 30% of any COC award.

Halley Willis of the Seattle King County Coalition on Homelessness noted that the changes put up to 60% of the entire $67 million grant at risk, potentially totaling $40 million in cuts. Lauren Fay of DESC called the situation "unprecedented" and "terrifying," urging the Council to sustain existing housing.

To address this uncertainty, Council Member Rinck moved an amendment (HSD82A1) that would provise $11.8 million in Human Services Department (HSD) funds to increase a Federal Emergency Reserve to mitigate these impacts.

Council Member Robert Kettle introduced a substitute amendment (HSD82B1) proposing a $700,000 carve-out from the reserve to support a homelessness and public space initiative pilot in Pioneer Square. Kettle argued the pilot, a partnership involving entities like the Downtown Seattle Association and Evergreen Treatment Services, was necessary immediately, built on lessons learned, and was vital for FIFA World Cup preparedness. Council Member Nelson supported the carve-out, preferring to preserve a quarter of the funding for the pilot rather than having it entirely withheld.

Vote Outcome on Kettle's Amendment (HSD 82B): The Council voted on Kettle's substitute amendment, which reduced Rinck’s proposed reserve by $700,000 to fund the Pioneer Square pilot. The substitute amendment passed 7-2. Council Members Hollingsworth, Kettle, Nelson, Rivera, Saka, Solomon, and Strauss voted in favor; Council Members Moore and Rinck voted no.

The resulting $11.1 million amended Rink amendment (HSD 82A) then passed overwhelmingly, 8-0-1.

Additionally, Budget Chair Strauss successfully moved a separate amendment (FG 101B1) to add $1.06 million to a general Federal Response Reserve, arguing that the federal government continually creates "manufactured problem[s] and crisis[es]" that Seattle must prepare for, referencing past SNAP benefit lapses and unfunded mandates. This reserve was funded by cutting OED’s “Stabilize Activate and Invest Locally” (SALE) program funding. The amendment passed 6-3, despite concerns from Council Member Saka that current, urgent needs (like food assistance) should take precedence over saving for unknown future disasters.

District 1 Council Member Rob Saka’s Amendments and Outcomes

Council Member Rob Saka, who repeatedly expressed his appreciation for the budget chair’s support of his district, sponsored several high-profile, standalone amendments, covering infrastructure, homelessness response, and neighborhood economic development.

Saka’s Successful Amendments:

• Pothole Repair Proviso (S.2B1): Saka proposed a clean, budget-neutral proviso on $4.3 million in SDOT funding to ensure it is spent specifically on pothole repair, citing it as a "basic good governance feature" and essential for FIFA World Cup preparedness.

    ◦ Outcome: Passed 5-2-2.

• Unified Care Team (UCT) Proviso (MO5A1): Saka proposed provisoing nearly $30 million spread across seven departments to ensure this funding is spent only on UCT activities (outreach, shelter connection, and encampment response). He thanked the UCT for their "mission critical work".

    ◦ Outcome: Passed 6-1-2.

• D1 Restrooms (SPR 17A1): This proposal allocated $1.1 million for freestanding prefabricated restrooms (like the Portland Loo) and a city-wide study, noting that District 1 parks were disproportionately represented on a "worst list" of parks needing maintenance. The funding included $500,000 of new Parks Levy fund balance and a $600,000 proviso on existing major maintenance funds.

    ◦ Outcome: Passed 6-3.

• Georgetown/BIA Support (OED 14A1): Saka successfully moved a proviso on $200,000 for business district support in neighborhoods unlikely to form Business Improvement Areas (BIAs) soon, specifically mentioning Georgetown.

    ◦ Outcome: Passed 6-3.

Saka’s Defeated Amendments:

• Roxbury Street Design (S.3B1): A proviso of $250,000 for design work on Roxbury Street paving.

    ◦ Outcome: Failed 3-6.

• Admiral Way Safety (S.17A1): A proviso of $1 million for safety improvements on Southwest Admiral Way, a "very dangerous" stretch of road.

    ◦ Outcome: Failed 3-6.

• Micromobility Corrals (S.31A1): A measure directing $200,000 from the crossing improvements project to fund additional scooter corrals, aiming to meet the goal of deploying 600 corrals before the World Cup. Council Member Strauss opposed the measure based on the funding source (taking money from crosswalk improvements).

    ◦ Outcome: Failed 3-4-2.

Other Key Policy Debates and Outcomes

Drug Diversion and Safer Supplies: Council President  Sara Nelson championed an amendment (HSD 57A1) to preclude city support for the distribution of supplies (pipes, foil) used to consume illegal drugs, with the exception of needles, arguing that public resources should not be used to "help people get high". Genevieve Koniski opposed this, stating that distribution sites offer safe spaces and supplies encourage healthy choices, not enabling drug use. The amendment passed 5-3-1.

Nelson also moved a proviso (Law 2A) for $289,000 to preserve funding for the City Attorney’s drug diversion work (Drug Prosecution Alternative), which provides an alternative to incarceration by connecting defendants with services. This item passed 7-0-2.

Tenant Services and Rental Assistance: Council President Nelson successfully moved an amendment (O2B1) to allocate $6 million for tenant-based rental assistance in Office of Housing (OH) funded affordable housing, arguing that the city must protect its current investments by helping providers maintain existing buildings. This funding is in addition to the $11.4 million already in the budget for general rental assistance and the $28 million in operating stabilization funding.

• Outcome: Passed 7-2.

The Council also adopted Council Member Rink's amendment (SDCI 6A1) to restore $400,000 to tenant service contracts, bringing the total restoration of tenant services to $900,000, arguing that tenant services (legal counsel, clinics, mediation) are critical to preventing evictions and subsequent homelessness.

• Outcome: Passed 7-0-2.

The Select Budget Committee adjourned at 4:26 p.m. with 13 amendments remaining. The next session is scheduled for November 17, followed by a final committee vote on the amended budget bill (CB 12116) next Thursday