Denver taps federal pandemic aid interest money for budget tweaks
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Illustration: Brendan Lynch/Axios
The city will use $4 million in interest earned from American Rescue Plan Act money to cover some changes proposed by Denver City Council to Mayor Mike Johnston's 2026 budget, his office said Monday.
Why it matters: The move restores money for some of council's top priorities, but it comes at the cost of losing a one-time funding source for a city facing a $200 million hole next year.
State of play: Adding $2.9 million to the city's rental assistance program, $800,000 for the clerk's office, and $125,000 for immigrant legal services are among the mayor's largest proposed changes.
- Additionally, the mayor agreed to move appointees' salaries to his office's budget, rather than keeping them buried in other city agencies — a change aimed at improving transparency, something for which his critics have assailed the mayor.
Between the lines: The addition to the rental assistance program brings its total to $15.1 million for 2026, per the mayor's Monday afternoon letter to Denver City Council.
- The agency overseeing the program, HOST, will use $2 million from its current general fund to pay for 100-plus wait-listed households and continue providing assistance until funding runs out this year.
Context: The mayor said his office addressed 11 of the 16 council recommendations, totaling $11.3 million. Some were listed as already budgeted or underway.
- Budget tweaks Johnston rejected included funding for right of way enforcement ($1.4 million), a workforce training program ($600,000), and the STAR program ($500,000).
The intrigue: The city's transportation and infrastructure department will create a ticket appeal program in lieu of adding $575,000 to restore Denver County Court's parking magistrate positions, his letter said.
What's next: Council has until Nov. 3 to vote on changes to the city's spending plan.
