Boston Mayor Wu Presents $3.99 Billion FY23 Budget With $350 Million in Federal Recovery Funds

BOSTON — July 19, 2026 — Boston Mayor Wu unveiled a $3.99 billion FY23 operating budget alongside a $3.6 billion capital plan and $350 million in remaining American Rescue Plan funds at a City Council kickoff session Saturday. The presentation marked the first budget cycle conducted under a new process giving the council expanded early authority, with Ways and Means Chair Tanya Fernandes Anderson and COVID-19 Recovery Committee Chair Kenzie Bach playing central roles. Housing received the largest single ARPA commitment at $380 million — described by the city's housing chief as unprecedented in Boston's history — targeted at homeownership expansion, transit-corridor anti-gentrification purchases, and supportive housing. Bach outlined five criteria for ARPA spending: urgent, systemic, enduring, public-oriented, and supportive of good jobs, noting the funds "can serve as a down payment on a systemic approach." Other highlights included a $20 million arts placemaking fund, a $6 million youth green jobs program, 20 new electrified school buses, a first fire department cadet class, and a new behavioral and mental health initiative housed at the Boston Public Health Commission. CFO Justin Starrett, whose departure ends five years in the role and eight consecutive years of AAA bond ratings for the city, was recognized at the close of the session.