Houston approves first-ever trash fee as budget battle ends in council

Houston residents will soon pay the city’s first-ever residential trash fee after City Council approved Mayor John Whitmire’s $7.5 billion budget Wednesday, closing a $174 million shortfall without raising property taxes but sparking fierce debate over how the gap was filled.

The budget passed 8-1, with Council Member Edward Pollard casting the lone dissenting vote. The spending plan remains largely unchanged from Whitmire’s original proposal, relying on a new monthly trash fee and the transfer of more than $100 million in solid waste costs from the city’s general fund to its water and sewer system.

“There is no perfect budget. The budget is a continuation of reviewing state, city, local government, and making adjustments. We can definitely make improvements. We’re going to do that,” said Whitmire ahead of the vote. 

 The budget includes a $5 monthly residential trash fee set to begin in July, along with a controversial transfer of more than $100 million in solid waste costs from the city’s general fund into its water and sewer system. Critics say the move effectively redirects utility revenue to cover non-utility services. 

Together, the measures close the budget gap without raising property taxes—a political promise Whitmire has repeatedly emphasized—but not without sharp debate from council members, residents and the City Controller’s office. 

However, it did not pass without a spirited debate from residents, council members and the City Controller’s office who warned that the budget shifts costs onto working families, while draining critical funding used for water infrastructure that could lead to higher water bills.

“Now there will be even less money to address water needs, because we’re using some of this money to pay for trash, so this is like robbing Peter to pay for Paul,” said Council member Edward Pollard. “No company would do this, and no household would do this. So, the question is, why are we?” said Pollard.

The new trash fee is one of the most direct impacts Houstonians can expect to feel from this year’s budget cycle.

The fee, set to begin in July, will be $5 per household for the next two years; enough to cover just the administrative cost of city trash pick up and generate $24 million in revenue for the city annually. 

Houston has had a well-known trash problem for years, with many complaints over late garbage, recycling and heavy trash pick up. City officials point to a variety of factors contributing to this, including only two of five operational transfer stations, staffing shortages and aging vehicles. 

As a result, the implementation of fees to recover the cost of service aims to boost staffing, purchase and replace vehicles, and make facility improvements. 

Uncertainty remains over what happens after the initial two-year period. After the $5 fee for trash pickup expires in two years, it will be up to future city council members to vote on a cost more aligned with the full cost of trash pickup service. 

Whitmire initially described a future “genuine garbage fee” that could rise toward full cost recovery, previously estimated by city staff at up to $25 per month by 2032. More recently, he suggested the fee may never exceed $5 if service improvements reduce costs enough. 

“If we get our five transfer stations and they’re running like they should, there’s a discussion that we could use that as a revenue stream and offset any need for a higher administration fee, ultimately a garbage fee,” said Whitmire during a May 5 press conference.  

That shifting message has drawn criticism from City Controller Chris Hollins, who accused the administration of inconsistent messaging and a lack of transparency. 

“The mayor is saying it may never increase beyond $5, which is a totally absurd statement that I’ve told him directly to his face, and he’s refused to comment on it when I’ve asked him about it,” said Hollins in an interview with Chron. 

“This budget receives an F for transparency and accountability,” Hollins said.

Hollins said the plan “kicks tough decisions down the road” and shifts more costs onto working families, arguing it is “not sensible, sustainable, or good for Houston’s future.” 

Hollins also pointed to a city cost-of-service study projecting trash collection expenses could approach $50 per household by 2031. 

Meanwhile, other arguments against the trash fee have been that it shifts costs onto residents during an already economically turbulent time. 

In response, Council Member Alejandra Salinas proposed—and council approved—an amendment to create discounted rates for seniors, low-income residents and qualified disabled veterans. 

Another major budget shift moves solid waste services—previously funded through the general fund—into the city’s Combined Utility System, which relies on water and wastewater revenues. 

Solid waste services, which had a $134 million budget inside the city’s general fund, will be moved into the city’s utility system that is primarily funded by water bill revenue. 

While the move brings large savings into the general fund, council members and the controller’s office have expressed concern it could lead to underinvestment in water infrastructure by using water revenue to cover other non-related costs like trash pick up. 

“We’re going to spend down our water fund by $200 million on stuff that’s not related to water,” said Hollins. 

“I’ve talked a lot since this budget has come up about the health of our combined utility system, the health of the reserves. We are all concerned about that,” said Council member Sallie Acorn during the June 10 budget vote discussion. 

The mayor’s administration has maintained that this would not impact water-related operations or cause a delay or drawdown of funds. 

“We are not defunding or delaying any projects, and we are not going to restrict any of the operating money,” said Steven David, a chief operating officer, during a May 6 Budget and Fiscal Affairs meeting. 

Council members filed dozens of budget amendments ahead of the vote. Here are some of the ones that passed: 

• Council member Salinas: A $3 million amendment was brought forward to establish dedicated funding to combat illegal dumping
• Council member Castillo: $216,000 to fully fund the crisis call diversion center
• Council member Peck: Keeps the trash container fee ($1.29 per month) in place only until the end of the fiscal year, at which point it will end unless council decides and votes if it is necessary
• Council member Castex-Tatum: $250,000 from the new solid waste administrative fee to fund education, auditing, and outreach around solid waste, especially recycling contamination. 

“The budget is not perfect, but perfect cannot become the enemy of progress,” said Council member Carolyn Evans-Shabazz.