Stability and Shelter Get Financial Backing

The City is continuously dedicated to incorporating feedback from members of the public and the City Council during the budget process and beyond. In particular, recent concerns around uncertain times in our country and federal funding have shaped an amendment to the original FY26 budget submitted by the City Manager and a free cash appropriation.

An additional $1 million was allocated to create municipal vouchers for unhoused individuals through the new Municipal Supportive Housing Vouchers (MSHV) program. Improving access to housing is a longstanding goal of the City Council and the City Manager. Funding for the MSHV program helps direct City resources to residents most in need of support. It will support 25 unhoused individuals with the transition into permanent housing. In addition, these individuals will be provided with ongoing supportive services to help them navigate this transition. This will be funded through a $1 million increase in the Department of Human Service Programs operating budget.

The Cambridge Housing Authority (CHA) will administer the MSHV program, which is expected to start up as early as late-August or September 2025. In preparation for the program’s implementation, the City and CHA will work together to design a prioritization process to select tenants this summer. The program will likely prioritize individuals who have experienced long durations of homelessness and need continuing supportive services.

Many City services affecting vulnerable residents rely on federal funding, including those related to housing stabilization, food insecurity, mental health support, and heating fuel assistance. The City expects to receive over $12 million in federal funds in FY26. However, some expected funds may be at risk due to executive orders, federal budget changes, or challenges surrounding grant conditions that are incompatible with City policies and values.

Through a $5 million Federal Grant Stabilization Fund, which resulted from a free cash appropriation, the City will be able to respond to possible funding cuts and support long-term stability.

This important fund allows the City, in the event of potential funding cuts, to maintain important services for vulnerable residents while looking for alternative long-term funding sources for City programs. If there is a loss of federal grants, the Federal Grant Stabilization Fund can be leveraged to address these gaps. This step helps the City address the increasing uncertainty around financial decisions at the federal level and how they may impact the Cambridge community.

Ultimately, amendments to the submitted annual budget and free cash appropriations ensure the City’s finances remains responsive to the priorities of the public and City Council while also preserving stability through times of uncertainty.