The City’s total budget is around 16 billion dollars. This year, San Francisco can anticipate approximately $2 billion from the Federal government. That’s a 15% decrease from the usual.
“Today, I’m proud to submit a balanced budget that is fiscally responsible and strengthens our social safety network," said Lurie, "so that in the face of Federal cuts, San Franciscans know they can count on this City.”
In addition to fewer Federal funds, the City also faces a $642 million budget deficit.
The bulk of Lurie’s proposed savings – about $500 million – will come from slashing government contracts with the variety of nonprofit organizations that provide direct services.
The Lurie administration is also tightening the belt by eliminating 500 government positions and imposing a hiring freeze to save $100 million.
Some departments - like the Department of Public Health - are being asked to slash tens of millions.
These budget cuts come as new Federal work requirements are being imposed by the Trump Administration, beginning today for CalFresh recipients, and in January 2027 for MediCal recipients.
These changes could cause up to 45,000 residents to lose their healthcare coverage, and a further 21,000 to lose their food stamp benefits.
The City plans to cover Federal government cuts to these programs through the Federal and State Risk Reserve set up in last year’s budget.
If passed, Lurie's proposed budget will go into effect in July 2026.
