The Select Budget Committee voted on Nov. 14 to move $1,060,000 into a city-held federal-response reserve intended to let Seattle respond quickly to sudden federal funding changes. The motion, FG101B1, passed on a 6–3 roll call and was attached to council bill 121116, the 2026 budget adoption ordinance.

Director Ben Noble told the committee that FG101B1 would place a million dollars from the "stabilize, activate and invest locally" sale fund plus $60,000 of remaining general-fund balance into a federal-response reserve to supplement other executive and council reserves for homelessness and other federal impacts. "This CBA frees up $1,050,000," Noble said during the overview, and he described the reserve as an additional level of flexibility to respond to new federal restrictions or cuts.

Councilmember Dan Strauss, sponsor of the chair's revised balancing package, framed the vote as fiscal prudence in an uncertain federal environment and urged support for the reserve: "Saving money reduces the deficit and prepares us for next year in a really responsible way." Councilmember Alex Saka (District 1) offered a set of alternative, district-focused uses for the $1,060,000 — including repairs, food-bank support and small-business investments — and asked colleagues to consider using the funds for immediate neighborhood needs.

Debate divided members who preferred a short-term, visible investment in community projects from the sale fund and members who said the city must hold flexible funds to respond to rapidly changing federal rules and to mitigate the newly announced HUD Continuum of Care NOFO. Councilmember Rink, who chairs a committee focused on federal impacts, supported the federal reserve, citing multiple sectors affected by federal actions.

The roll call recorded six votes in favor and three opposed. After the vote Chair Strauss said that the committee would continue to consider other amendments and reconvene after a lunch recess to finish remaining items.

Vote tally: FG101B1 passed 6 in favor, 3 opposed (roll call recorded in the committee minutes).