As cities prepare their annual budgets, a growing number of municipalities across the United States are adopting approaches that prioritize equity and community involvement in public funding decisions. Rather than rushing through budget approvals with minimal assessment of who benefits, some cities are embedding equity as a central element of their fiscal planning, aiming to direct resources toward historically underserved communities and involve residents more meaningfully in decision-making processes.

Chicago exemplifies this shift toward equitable budgeting. In 2020, advocacy groups and residents in neighborhoods long affected by disinvestment proposed the “People’s Budget Chicago,” demanding increased funding for health, education, and housing, alongside reductions in police spending. While their specific budget proposals were not fully adopted, the city incorporated equity considerations into its budget process. The establishment of the Office of Equity and Racial Justice introduced the “Budget Equity Tool” in 2021, a mechanism requiring city departments to track progress against racial equity goals when submitting budget requests. This approach was codified into law in 2022, institutionalizing equity review as a permanent component of Chicago's budgeting.

The implementation of equity-focused budgeting in Chicago has yielded measurable results. For example, city officials identified a bias in the allocation of tree trimming services, which was previously driven by 311 service requests predominantly originating from the city’s wealthier, primarily white North Side neighborhoods. By introducing a data-driven system prioritizing areas based on need, Chicago tripled its tree-trimming capacity, advancing toward the goal of servicing every tree citywide within six years.

Under Mayor Brandon Johnson, co-governance—shared decision-making between government and communities—is being actively pursued. Initiatives in urban agriculture, equitable electrification, and support for residents returning from incarceration emphasize collaboration between agencies and community organizations. City officials acknowledge the importance of addressing historic distrust and genuinely sharing power to improve outcomes in these efforts.

New York City, while earlier in its equity budgeting journey, has initiated steps to enhance transparency and community participation. Mayor Zohran Mamdani recently unveiled a preliminary Racial Equity Action Plan following delays from the prior administration. The City Council and the public advocate’s office introduced new tools, including a budget transparency dashboard covering seven years of fiscal data and an interactive platform allowing residents to explore and influence the city's $125 billion budget for 2027. The People’s Money Initiative, now in its fourth year, focuses on engaging underserved communities—especially youth and immigrants—in budget allocation decisions. Efforts are underway to integrate equity analysis directly into the budget process, with collaboration between City Council Deputy Speaker Nantasha Williams and community groups.

Minneapolis offers a long-standing example of equity-based allocation of public funds. Since 2016, its independent Park & Recreation Board has used an equity framework to guide a 20-year, $11 million park revitalization plan. Parks are annually assessed through indicators such as neighborhood income levels and maintenance needs, prioritizing improvements in low-income communities of color. To date, 46 parks and 28 recreation centers have been renovated, and all 180 parks in the city are slated for upgrades by 2036.

These cases demonstrate common elements for successful equity budgeting: robust collaboration with community organizers, legal codification of equity requirements, deployment of new methodologies focused on need, and sustained commitment to institutional reform. Challenges remain, including extending equity evaluations beyond specific departments to encompass entire public budgets.

At a time when federal funding priorities are shifting and public trust in government is strained, these cities are using the budgeting process as a means of democratic renewal, building trust by addressing longstanding unmet needs in marginalized communities.