LEXINGTON, Ky. — The Budget, Finance & Economic Development Committee is scheduled to meet Tuesday to review how shifting federal policies are affecting the city's businesses and government operations, with particular focus on housing affordability and federal funding threats.

The committee meeting, set for 1 p.m. in the Council Chamber, will hear presentations from the Kentucky Chamber of Commerce and city staff on federal policy impacts. According to the agenda item on local business impacts, representatives from the Kentucky Chamber will discuss federal tax policy, tariffs, fuel prices and immigration trends affecting employers. The presentation notes that median home-sale prices in Lexington are now 3.8 times median household incomes, compared to 2.7 times 30 years ago.

A separate presentation on federal policy impacts to local government will examine threats to the city's $50 million to $60 million annual federal grant portfolio. City staff will brief the committee on how shifting federal agency priorities since 2025 have created compliance questions, though the city has not lost any federal funding to date. One 2025 incident highlighted the risk when a major SAMHSA opioid grant was temporarily withheld but reinstated after public outcry.

The committee will also hear an update on the city's July 2026 financial results. Through the first month of fiscal year 2027, revenues totaled about $30.7 million and expenditures reached $42.9 million, reflecting typical early-fiscal-year patterns. Officials note that substantial general fund revenue from property taxes is not expected until November.

On the legislative front, the 21st Century ROAD to Housing Act became law July 11, 2026, expanding Community Development Block Grant uses to include new construction of affordable housing and expanding flexibility in the HOME grant program. The law also requires CDBG grantees to maintain databases of publicly owned land suitable for development and rewards communities that facilitate housing development through density bonuses and parking requirement changes.

The committee will also consider approval of its June 23, 2026 meeting summary and review referred items on its workload, including the status of pending studies on the exaction program, opioid abatement funding, e-911 fund revenue sources, community benefits agreements, and housing rehabilitation programs.