Mayor Lurie Signs Balanced Budget Strengthening San Francisco's Social Safety Net, Advancing City's Economic Recovery

SAN FRANCISCO – Mayor Daniel Lurie today signed a $16.9 billion budget for Fiscal Years (FY) 2026-2027 and 2027-2028, strengthening the city’s social safety net in the face of hundreds of millions of dollars of federal cuts to healthcare, while protecting core services that deliver safe, clean streets and continue to drive San Francisco’s economic recovery. Passed unanimously by the Board of Supervisors, the budget closes a $642 million two-year deficit and reduces the city’s structural deficit by approximately $300 million.

Mayor Lurie’s second budget builds on 18 months of progress toward safer, cleaner streets and making sure San Francisco is welcoming to families. Crime was down 25% in Mayor Lurie’s first year in office, and it continues to decrease in 2026. Unsheltered homelessness is at its lowest level in 15 years, as the administration has transformed the city’s homelessness and behavioral health response through the Breaking the Cycle plan. San Francisco’s economic recovery is well underway, with Muni and BART ridership reaching post-pandemic highs, office vacancy rates continuing to drop, and downtown foot traffic increasing. And through Mayor Lurie’s Family Opportunity Agenda, San Francisco will be the first city in the country to ensure every family has access to childcare, as the city takes steps to build more housing and invest in affordable housing.  

“When families have the stability and support they need, they can stay and build a life in San Francisco. That commitment guided every part of the budget process,” said Mayor Lurie. “With this budget, we are helping families stay on healthcare and food assistance, building on our work to prevent homelessness, and investing in public safety and clean streets. And we’re continuing to live within our means—strengthening our reserves to prepare for more federal cuts while getting our budget in order so we don’t have make cuts year after year after year. I am grateful to President Mandelman, Supervisor Chan, and the entire Board of Supervisors who worked with my office to get this budget done in record time and passed it unanimously—the first time we’ve had a unanimous vote on the budget in six years. This budget is proof that City Hall is ready to work together to get things done for San Francisco families.”

“This budget prioritizes public safety and frontline services, while protecting vulnerable communities, maintaining important behavioral health programs, and investing in technology modernization,” said Board President Rafael Mandelman. “I am glad that the Board and Mayor together were able to restore funding for small business support, HIV prevention, and Free City College, among other vital programs.”  

“This budget prioritizes San Francisco values, preserving funding for vital services, while safeguarding for our future,” said District 1 Supervisor and Budget Committee Chair Connie Chan. “San Francisco will not stand by while the Trump Administration guts our healthcare, our food security, or our education. I thank the Mayor for his partnership in fighting back to create a budget that protects our most vulnerable while saving for the future.”

The city’s budget:

• Strengthens the safety net and supports San Francisco families by investing $34 million to help San Franciscans stay enrolled in Medi-Cal and CalFresh benefits and $120 million to keep families and youth housed, maintaining funding for LGBTQ+ community-based organizations and support for San Franciscans living with HIV and AIDS, and setting aside $100 million to prepare for upcoming state and federal cuts to housing and homelessness.
• Protects core services that improve public safety and continue to drive the city’s economic recovery by investing $20 million in modernized public safety equipment for first responders, committing $71 million for street resurfacing projects, and investing in drug treatment and mental health services with accountability for providers to deliver results.
• Manages spending responsibly and positions San Francisco for the future by closing a $642 million two-year deficit, reducing the structural deficit by approximately $300 million, and slowing the pace of hiring with plans to save an additional $80 million through attrition—avoiding a scenario where the city’s deficit would have reached $1 billion in five years.

“This budget reflects what is possible when we approach difficult decisions with collaboration, discipline, and a shared commitment to the people of San Francisco,” said District 6 Supervisor Matt Dorsey. “I’m grateful to Mayor Lurie, Chair Connie Chan, my colleagues, and everyone who helped deliver a fiscally responsible budget that protects essential services and puts our city on a more sustainable path for the future.”  

"This year's budget process reflected our city's resolve during challenging times. I want to commend Budget Chair Chan, my colleagues, the Mayor's team, and the incredible organizing of community members for their disciplined collaboration,” said District 7 Supervisor Myrna Melgar. “While many difficult decisions were made, overall, we were able to preserve many essential programs, especially for children, youth, families, seniors, and people with disabilities. I am hopeful for an equitable recovery for San Franciscans during this time of uncertainty.”  

“I'm proud that this Board and Mayor stood united in looking out for our city amidst a difficult budget climate,” said District 3 Supervisor Danny Sauter. “We fought for and won back funding for programs that serve our seniors, small business grants that fuel our neighborhoods, and vital services for our immigrant communities. Residents told us loud and clear that they want transparency, partnership, and a City Hall that listens—and those values guided our budget process."  

“This year’s budget reflects our shared values,” said District 11 Supervisor Chyanne Chen. “The Board, the Mayor’s Office, and our community-based organizations came together to pass a budget we can all be proud of—one that prioritizes stabilizing and supporting our city’s most vulnerable communities citywide.”  

“Balancing a budget during a significant deficit requires difficult choices, but it also requires staying focused on what matters most,” said District 5 Supervisor Bilal Mahmood. “This budget makes meaningful investments in neighborhood safety, youth violence prevention, immigrant legal services, homelessness response, and food security while protecting programs that thousands of San Franciscans depend on every day. I’m proud that we were able to stand with the community for these priorities throughout the process, and this final budget reflects our commitment to building a safer, healthier, and more equitable San Francisco.”  

“This has been one of the most challenging budget years in recent memory, and we're proud of what we were able to accomplish,” said District 4 Supervisor Alan Wong. “Despite difficult choices, we fought to protect the services and resources that help our residents, especially seniors and the nonprofits serving our most vulnerable communities. This budget helps ensure they will continue to have access to the support they need while allowing our community partners to keep doing the vital work that holds our neighborhoods together.”