Mayor Cherelle L. Parker has unveiled her proposed $6.7 billion budget for fiscal year 2026, emphasizing tax reforms, substantial investments in housing, and enhanced funding for public safety and infrastructure. ​

Over the past year, the Parker administration has made significant strides in addressing public safety, economic opportunity, education, and neighborhood revitalization. Accomplishments include:

  • Homicides and shootings have dropped, aided by investments in community policing, violence prevention programs, and the launch of the Prevention, Intervention, and Enforcement (PIE) strategy.
  • The city cleaned 67,000 streets and corridors, towed 11,000 abandoned cars, and revitalized 17,000 vacant lots through expanded cleaning initiatives.
  • Investments in education included funding for extended day and year-round schooling, adding 7,000 new enrichment slots and increasing school district funding through real estate tax adjustments.
  • In housing, the administration committed to creating or preserving 30,000 affordable units, prioritizing regulatory streamlining to expedite development.

Additionally, the city bolstered its fiscal health, contributing $280 million to the budget stabilization fund and achieving the highest pension funding level in decades, positioning Philadelphia for long-term financial sustainability.

Tax Reforms to Stimulate Economic Growth

In a significant policy shift, Mayor Parker’s FY26 budget proposal takes important steps toward making Philadelphia a more competitive business environment, including reductions to the Business Income and Receipts Tax (BIRT) and wage tax. These reforms signal an intent to modernize Philadelphia’s tax structure and make it more attractive for businesses and workers alike.

As part of this effort, the administration is proposing:

  • Lowering the BIRT net income tax rate from 5.81% to 5.71% in FY26, with a long-term goal of reducing it to 2.8% by 2033 and eliminating the gross receipts portion entirely over the same period.
  • Resuming reductions to the wage tax in FY26, bringing the rate for Philadelphia residents down to 3.7% and non-residents to 3.39%, further enhancing the city’s regional competitiveness.
  • Eliminating the $100,000 BIRT gross receipts exclusion, expanding the tax base by requiring more businesses to file BIRT returns, in response to legal challenges around the exemption’s constitutionality.

A Call to the Business Community

Mayor Parker has issued a direct call to action for the business community to engage in advocacy efforts at the state level. The administration is pushing for:

  • Raising the minimum wage to $15 per hour statewide to ensure fair wages while maintaining economic stability for businesses.
  • Granting Philadelphia legislative authority to set its own wage policies, empowering the city to make locally informed decisions that support both workers and employers.

The Chamber of Commerce for Greater Philadelphia supports raising the minimum wage to $15 per hour and remains committed to working with policymakers to ensure a balanced approach that strengthens businesses, supports workers, and fosters economic growth.

Strengthening Philadelphia’s Business Environment

Mayor Parker’s budget proposal prioritizes fostering a strong, competitive, and business-friendly climate by streamlining city processes, increasing financial support for small businesses, and investing in workforce development. The administration recognizes that a thriving business community is essential to Philadelphia’s long-term economic success, and the FY26 budget includes several key investments to help businesses grow, create jobs, and drive innovation.

Commerce Department Initiatives & Small Business Support

  • Philly Open for Business Initiative – Led by the Philadelphia Department of Commerce, this initiative aims to make it faster and easier to start and operate a business in Philadelphia. The administration is working to simplify permitting and licensing processes, reduce bureaucratic barriers, and improve customer service for businesses engaging with the city.
  • New $5 Million Small Business Catalyst Fund – The budget introduces a $5 million Small Business Catalyst Fund, designed to provide early-stage capital to small businesses. This fund will offer grants and technical assistance, particularly for minority-owned, women-owned, and disadvantaged businesses seeking to expand.
  • Commerce Jumpstart Program ($30 Million Over 5 Years) – To provide additional resources to small businesses, the administration has proposed a $30 million Commerce Jumpstart Program as part of the five-year financial plan. This program will offer grants, low-interest loans, and business support services to help entrepreneurs and small business owners establish and scale their operations.

Workforce Development & Economic Opportunity

  • City College for Municipal Employment (CCME) – The budget invests in CCME, a workforce development initiative that will train Philadelphians for city government jobs. This program provides job training, benefits, and pension opportunities to help individuals build long-term careers in public service. This spring, 32 high school seniors will receive CCME training, creating a direct pipeline from high school to city employment.
  • Wellness Ecosystem & Healthcare Job Training – The administration has assembled a network of healthcare and wellness organizations, backed by $100 million in capital investments in FY25, to strengthen Philadelphia’s healthcare workforce. The city recently opened the Riverview Recovery Center in Northeast Philadelphia, a 336-bed facility that provides medical care, addiction recovery services, and job training opportunities for individuals in recovery. This facility was renovated in just 88 days and represents a critical investment in both public health and workforce development.

Leveraging Major Development Projects for Economic Growth

  • East Market Street & Arena Development – The administration is committed to ensuring major development projects contribute to Philadelphia’s economic well-being. While discussions continue around the proposed new arena in South Philadelphia, Mayor Parker emphasized that projects of this scale must deliver significant benefits for city residents and businesses, including local hiring initiatives and economic opportunities.

The Chamber of Commerce for Greater Philadelphia supports investments in small business growth, streamlined city processes, and workforce development, recognizing that a strong business community is vital to regional prosperity. By investing in small businesses, reducing regulatory hurdles, and expanding job training opportunities, these initiatives will help Philadelphia remain competitive, attract new businesses, and create more jobs for residents.

Investing in a Cleaner, Greener Philadelphia

Mayor Parker’s budget prioritizes clean and green initiatives that enhance the city’s livability, improve public spaces, and support sustainable urban development. The administration is expanding programs that clean streets, revitalize neighborhoods, and promote environmental stewardship, ensuring that all communities—especially those historically underserved—benefit from these investments.

Expanding Street Cleaning & Neighborhood Beautification

  • One Philly Citywide Cleaning Program – The budget continues funding for the One Philly cleaning initiative, which ensures twice-weekly trash pickup in targeted neighborhoods and cleaning crews assigned by Council district. This program has cleaned 67,000 city streets and corridors, towed 11,000 abandoned cars, and revitalized 17,000 vacant lots in the past year alone.
  • PHL Taking Care of Business (PHL TCB) Program – This community-based cleaning initiative currently employs 324 workers and partners with 39 community organizations to clean 155 commercial corridors across the city. The budget expands this program by adding new organizations, hiring additional workers, and expanding to 29 new areas to further support Philadelphia’s small business districts and neighborhood corridors.

Greening Efforts & Sustainable Investments

  • 10-Point Neighborhood Greening Plan – The administration is partnering with nonprofits and community organizations to implement a 10-point greening strategy focused on tree planting, vacant lot cleanup, and community gardens. These efforts aim to reduce urban heat islands, improve air quality, and create healthier neighborhoods.
  • Planters & Green Spaces in Commercial Corridors – To enhance public spaces, the city is investing $4.2 million in new planters for commercial corridors, creating greener, more pedestrian-friendly streetscapes that support local businesses.

Combating Litter, Blight, and Graffiti

  • Anti-Litter & Blight Task Force – The city is increasing fines and installing surveillance cameras in high-litter areas to deter illegal dumping and hold violators accountable.
  • Graffiti Removal & Mural Arts Expansion – Philadelphia is investing $2.4 million over three years to expand graffiti removal programs, particularly along highways and high-traffic areas. Through a partnership with Mural Arts Philadelphia, the initiative will also support artists in transforming previously vandalized spaces into public art projects that showcase local talent.

The Chamber of Commerce for Greater Philadelphia supports investments in clean and green initiatives, recognizing that clean, vibrant neighborhoods attract businesses, improve public safety, and enhance Philadelphia’s economic vitality. By ensuring that commercial corridors, residential neighborhoods, and public spaces are well-maintained, these initiatives help retain businesses, create jobs, and foster a sense of community pride.

Historic Investment in Housing Initiatives

Mayor Parker’s budget proposal outlines a transformative plan to expand and preserve affordable housing, addressing one of Philadelphia’s most pressing challenges. With a goal of creating or maintaining 30,000 housing units during her first term, the administration is taking an aggressive approach to increase housing accessibility, streamline development processes, and support residents in securing stable housing.

The city is committing $800 million in housing bonds over the next five years to support various housing initiatives. The plan includes issuing $400 million in bonds in FY26 to accelerate development and address the urgent demand for affordable housing.

  • Housing Opportunities Made Easy (HOME) Program – The administration is investing in the HOME initiative, which focuses on creating and preserving 30,000 affordable housing units through new construction, rehabilitation, and rental assistance programs.
  • Expedited Housing Development & Regulatory Reform – Mayor Parker signed an executive order directing 25 city departments to prioritize housing development, requiring them to provide recommendations within 30 days to streamline permitting processes, cut regulatory red tape, and accelerate project approvals while maintaining safety standards.

To help fund these ambitious housing initiatives, Mayor Parker’s budget proposes:

  • An increase in the real estate transfer tax, from 3.278% to 3.578%, generating additional revenue to support affordable housing programs.
  • Eliminating the construction impact tax, which has generated limited revenue since its inception, to encourage new development and investment in housing projects.

The Chamber of Commerce for Greater Philadelphia supports initiatives that increase accessible housing as part of its broader advocacy agenda, recognizing that housing affordability directly impacts workforce stability and economic mobility across the region. A strong, sustainable housing market is essential to attracting and retaining talent, ensuring that workers at all income levels can afford to live in the communities where they work.

Investing in Public Safety for FY26

Mayor Parker’s FY26 budget continues to prioritize public safety through a comprehensive strategy that balances prevention, intervention, and enforcement. The budget builds upon progress made over the past year, with investments aimed at reducing crime, strengthening law enforcement capabilities, and expanding community-based initiatives that address the root causes of violence. Key public safety investments in FY26 include:

  • Neighborhood Wellness Court Expansion – The city will expand the Neighborhood Wellness Court, which was piloted in 2025, to operate five days a week. This program provides a fast-tracked diversion process for individuals with drug-related offenses, offering them same-day health and mental health assessments. The $2.7 million investment aims to reduce recidivism by connecting individuals to treatment services and supportive resources.
  • Expanding the Pre-Arrest Diversion (PAD) Program – An additional $2.8 million investment will expand PAD as a pilot program, helping individuals who commit low-level offenses receive treatment and social services instead of incarceration. This initiative seeks to reduce strain on the criminal justice system while providing at-risk individuals with the resources they need to avoid reoffending.
  • Enhancing Forensic Capabilities – The city is investing $67 million to develop a new forensics lab at 1401 W. Market Street in West Philadelphia. This facility will significantly increase forensic capacity, allowing law enforcement to process evidence more efficiently, solve crimes faster, and improve case outcomes.
  • Recruiting and Training New Officers – To strengthen public safety efforts, the administration is increasing investments in police recruitment and training. In the past year, 369 new officers graduated from the academy, and efforts are underway to continue expanding the force. Every police officer will be equipped with body cameras by 2029, and dash cameras will be installed in all police vehicles to enhance transparency and accountability.
  • Advancing Vision Zero Goals – The city is recommitting to its Vision Zero initiative, which aims to eliminate traffic fatalities. Speed cameras on Roosevelt Boulevard have already saved 50 lives, and new funding will allow for their expansion to five additional high-risk corridors. The FY26 budget includes $5 million in direct funding for Vision Zero projects, along with $30 million in capital investments over six years to improve street safety infrastructure.
  • Strengthening Drug Recovery and Rehabilitation Services – The city will allocate nearly $300 million over five years to expand Philadelphia’s drug addiction recovery capacity. This funding will support the continued development of a new recovery facility in Northeast Philadelphia, providing over 600 beds for individuals in need of treatment. An initial $100 million allocation in FY26 will go toward the expansion of this critical initiative.

Commitment to Philadelphia’s 250th Anniversary

In anticipation of Philadelphia’s 250th anniversary in 2026, Mayor Parker proposes an initial allocation of $40 million to support the city’s commemorative events. This funding would address urgent operational costs, including fleet improvements, security measures, and manpower, ensuring the city is well-prepared for the influx of visitors and celebratory activities. ​

As Philadelphia prepares for once-in-a-generation economic opportunities, including the 250th anniversary of the Declaration of Independence and the 2026 FIFA World Cup, we must ensure that our tax policies position the city to compete regionally and nationally. These global events will put Philadelphia in the international spotlight, making it more important than ever to attract new businesses, retain top talent, and foster inclusive economic growth.

Advocating for a Stronger Region

Mayor Parker’s budget proposal reflects a comprehensive strategy to address Philadelphia’s immediate needs while investing in long-term growth and sustainability. The focus on tax reform, housing, public safety, and infrastructure underscores the administration’s commitment to fostering a safer, more equitable, and prosperous city for all residents.​

As the budget undergoes deliberation in City Council, stakeholders and community members are encouraged to engage in the process to ensure the final budget aligns with the diverse needs of Philadelphia’s communities.

The Chamber remains committed to working with city leaders and local businesses throughout the budget process to make Greater Philadelphia a top global destination for business and a leader in inclusive growth. Through collaborative action and bold policy changes, we can position Philadelphia as a national leader in economic opportunity, job creation, and business success.