Alexandria’s City Council unanimously adopted the fiscal year 2026 operating budget of $956.5 million in a meeting on April 30, where Council highlighted the difficult process as the federal government’s funding and the nation’s economy remain uncertain.

“We are passing this budget at a time of great economic uncertainty. We know that families, workers, small businesses and so many in our community are navigating rising costs. They’re navigating job loss, and they’re navigating uncertainty about what’s next for them and their families,” Mayor Alyia Gaskins said at the meeting.

Much of the uncertainty is due to President Donald Trump’s recent economic actions , including imposing tariffs on imports into the United States and laying off federal workers across several agencies. The New York Times confirmed , as of May 5, that at least 58,566 workers have been laid off – though some have been temporarily reinstated following court orders – along with about 76,000 more departing employees who took buyouts.

City Manager Jim Parajon also acknowledged the difficult budget process this year in the meeting.

“Adopting the annual budget is never an easy responsibility. … This year, with the uncertainty in our economy, with decisions made at the federal level, it was even more challenging, but you [City Council] have delivered a meaningful and sound budget that reflects shared values, priorities and the collective vision for the future of Alexandria,” Parajon said. “You have protected the city’s future.”

Alexandria City’s budget, which reflects a 3.2% spending increase over the fiscal year 2025 approved budget of $926.4 million, does not include an increase in the residential tax rate for residents. The rate will remain at $1.135 per $100 of assessed value.

The average residential tax bill will nonetheless increase by 3.6% over last year due to rising property assessments. The average bill will increase by an estimated $348, from $9,761 to $10,162.

“I felt … that a tax rate increase on our residents – particularly in a time when we’re struggling with the potential impacts of what could happen at the federal level – [it was important for me to] not look to increase costs on our residents and businesses for this particular year,” Parajon noted in a March interview with the Times about the budget.

Councilor Kirk McPike said at the April 30 meeting it was important for Alexandria to remain a stable place for residents despite the federal government’s changes.

“It wasn’t an easy budget to assemble. … We know this having looked around the country and seeing the chaos that has enveloped so many levels of our governing system, and in that midst of chaos, the City of Alexandria is a calm in the storm,” McPike said. “The budget that we’re going to vote on tonight, it maintains our tax rates as they were last year, and it also maintains our core commitments as a city.”

The stormwater utility fee is increasing from $324.10 to $340.30 annually for single-family households.

The budget also increases funding to Alexandria City Public Schools following a request from Councilor John Taylor Chapman during the add/delete process. An additional $1.2 million is being given to ACPS’ operating budget for student support services.

“I certainly appreciate my colleagues and our effort to bring additional resources to our local school system. We know that it is going to continue to be a challenge to get state resources and so doing what we can locally to support the education and improvement of the educational opportunities for our kids and families is necessary,” Chapman said in the April 30 meeting.

Parajon initially proposed ACPS receive $281 million – around $7 million less than the School Board’s approved budget of $288.2 million. Now, ACPS will receive $282.4 million for fiscal year 2026; the School Board and district must now undergo a revision of its previously adopted budget, which is expected to be adopted on June 12.

ACPS is proposing a variety of cuts, including eliminating the 1% market-rate – also known as a cost-of-living adjustment for eligible staff; eliminating new positions for social workers, school psychologists and English-language learner teachers; and reducing funds for technology hardware and infrastructure.

Vice Mayor Sarah Bagley said she was happy Council could increase DASH service along line 32, especially after hearing how it positively impacts residents.

“With each year that I serve on Council, the more apparent it is to me that free, safe, accessible transportation is an absolute game-changer in our community,” Bagley said. “I’m really proud and pleased and appreciative that my colleagues and I found a way, even in what was a relatively tight budget year, to continue incrementally expanding DASH.”

Councilor Abdel Elnoubi celebrated not only his fellow councilors but the work of city staff for crafting the budget.

“Our staff are the heroes behind the scenes. They are the ones who really worked hard on this budget before they brought it to us,” Elnoubi said at the meeting. “They got creative. They made sure there were no job cuts. They made sure that we could continue some of the most important programs to our residents.”

Councilor Canek Aguirre said while Council couldn’t include every single add, they worked to protect the city’s values.

“We’re not afraid to say diversity. We know the richness and the value that it brings, not just to our community, but to our residents and how we operate here in Alexandria,” Aguirre said.

Gaskins echoed the rest of Council and stated this budget is “just the first step” in moving Alexandria forward.

“We’re going to keep figuring out how we tackle big issues like economic development, like flooding, like housing and homelessness, and how we invest in our schools,” Gaskins said. “This budget gives us a solid foundation upon which to build on. This budget is your budget. I hope that you are just as proud of it as we are, and I hope that you’ll continue working with us to build the future together.”