Mayor Soraya Martinez Ferrada has framed Montreal's newly tabled 2026 budget as a pivotal shift for the city, calling it "a new beginning" that directly addresses the concerns of its residents. Presented on Monday, January 12, 2026, this marks the first budget from her Ensemble Montréal administration since winning the fall municipal election.
A Budget Built on New Priorities
During the city's weekly executive committee meeting on Wednesday, January 14, Mayor Martinez Ferrada defended the $7.67-billion spending plan. She acknowledged it may not be perfect but insisted it sets a clear direction. "It actually responds to what Montrealers have asked us to do," she stated, emphasizing a refocusing of city services on core needs.
The budget represents a 5.4 per cent increase in expenses over the previous year. For homeowners, this translates to an average property tax increase of 3.8 per cent, a rise from the 2.2 per cent hike implemented the year before.
Key Investments and Opposition Critique
The financial plan reveals the administration's key focuses. Notably, it triples the funding allocated to combat homelessness and designates the largest portion of spending to public security. A parallel 10-year, $25.9-billion capital works program was also introduced, outlining long-term infrastructure projects.
Claude Pinard, chair of the executive committee, highlighted the administration's commitment to fiscal responsibility, pointing to annual savings of $79 million from cost-cutting measures. He also cited historic investments in road and water infrastructure, and increased transfers to boroughs for local services.
However, the official opposition, Projet Montréal, has criticized the budget as "home staging" and expressed concern over its trajectory. The party specifically took issue with the higher property tax increase and warned that the plan delays several key projects by years.
Public Hearings and Departmental Details
The budget review process is now underway, with a commission holding public hearings at city hall until its expected adoption on January 28, 2026. Testimony will be heard from various city departments, the Société de transport de Montréal (STM), and Montreal police chief Fady Dagher.
Despite a six-per-cent boost in the city's contribution, the STM has indicated that hundreds of millions more are needed to maintain métro operations and keep stations open. The police department's budget is set at $860.29 million for 2026, with the capital program earmarking $40 million over a decade to equip officers with body cameras.
Mayor Martinez Ferrada remains steadfast, proud of a budget she believes steers Montreal toward stability by addressing urgent needs while beginning to tackle the city's debt after years of overspending.
