In remarks delivered during the Georgia Chamber of Commerce's January 14 "Eggs and Issues" breakfast, state leaders outlined a broad agenda for the 2026 legislative session centered on affordability, infrastructure, workforce development and economic stability; all areas with direct implications for Georgia’s cities.
Gov. Brian Kemp used the event to preview key elements of his budget recommendations, while legislative leaders also shared priorities that will shape discussions in the weeks ahead.
Transportation Investments with Direct Local Impact
The governor’s proposed budget includes significant new transportation and infrastructure investments with direct implications for cities and counties. Among the largest proposals is $1.8 billion to expand capacity along the I-75 South corridor in metro Atlanta, along with additional funding for local road projects, bridge repairs, and natural gas infrastructure across the state.
The budget also includes $250 million for local road improvements through the Local Maintenance and Improvement Grant (LMIG) program, effectively doubling the program’s funding for the third consecutive year. The funding will be distributed to all cities based on the existing formula, and the governor again proposed waiving the required local match, a move that would reduce financial pressure on cities and allow more local dollars to be directed toward street repair, resurfacing, and maintenance.
“Reliable transportation networks are essential to every city’s ability to grow,” said GMA Executive Director Larry Hanson. “Expanded investment in both regional corridors and locally maintained streets can reduce congestion and support economic activity that benefits residents and businesses alike.”
State leaders emphasized that transportation investments not only improve mobility but also support workforce participation and long-term economic competitiveness; priorities shared by cities managing growth and service demands.
Housing, Homelessness and Tax Policy Shape City Concerns
Gov. Kemp also highlighted a proposed $50 million Homelessness Response Grant in his budget recommendations, aimed at supporting local governments, nonprofit partners and service providers statewide. The funding would assist with emergency shelter, transitional housing, outreach and wrap-around services such as mental health and substance use support.
“Cities are on the front lines of addressing housing instability,” Hanson said. “State resources that support coordinated local responses, especially those that build on proven community solutions, can enhance outcomes for people experiencing homelessness and strengthen neighborhoods.”
Broader affordability discussions also included tax policy, with legislative leaders raising ideas such as eliminating property taxes on primary residences which would have significant implications for municipal revenue and service delivery.
“Property taxes fund essential services like public safety, parks and infrastructure maintenance,” Hanson noted. “Any major change in that system requires careful planning and collaboration to ensure cities can continue meeting community needs without shifting the burden elsewhere.”
As the session unfolds, city leaders will be watching closely to see how the governor’s budget recommendations and legislative proposals translate into policies that support strong, sustainable communities statewide.