HOUSTON – The City of Houston could soon begin charging residents a new monthly fee tied to solid waste services, something city leaders say has never been done before.
Mayor John Whitmire’s administration is proposing what it calls an “administrative fee” starting in 2027. The fee would begin at $5 per month for the first two years, then increase by $5 annually until it reaches $25 per month.
City officials stress this is not a traditional garbage pickup fee.
“We’re technically not charging a garbage fee,” said Steven David, the mayor’s deputy chief of staff. “We’re charging an administrative fee.”
City officials say their budget proposal is “the first step in creating long-term sustainability for Houston’s budget.” David said if the city accepts these proposals, it could address part of the city’s $100 million budget deficit.
“If we do nothing, we will see a budget gap of $209 million [for FY27],” David said. “The next year will be $334 million, the year after that’s $381 million, and the year after that’s $446 million.”
David stressed during the budget briefing with KPRC 2 News that if the city does nothing, the city would be in “layoff territory.”
“Can’t lay off police, can’t lay off fire, there’s laws against that. And solid waste is considered the most core function that we do inside the general fund,” he said. “So that means libraries close, parks close, we stop maintaining our parks, we layoff all of basically everybody.”
How the fee would work
Under the proposal:
- Residents would pay $5 per month in 2027 and 2028
- Starting in 2029, the fee would increase by $5 each year
- By 2032, households would pay $25 per month, which officials say reflects the full cost of service
City leaders say the gradual increase is designed to avoid “household shock” for residents who have never paid a direct fee for trash services.
According to the administration, the actual cost of providing solid waste services is already about $24 to $26 per household per month, roughly $25 when spread across Houston’s estimated 400,000 customers. For the first several years, the city plans to subsidize most of that cost using existing funds.
Why the city says it’s not a “trash fee”
Officials argue the distinction comes down to structure and scale.
They say the initial $5 charge is far below the true cost of garbage collection and is meant to cover administrative operations as the city transitions its solid waste department into a municipal utility under state law.
The administration also emphasized that Houston has historically funded trash services through general revenue rather than direct user fees.
The proposed plan does not currently include discounts for seniors or low-income households. It also avoids a “pay-as-you-throw” model used in other major Texas cities, where residents pay based on how much trash they generate.
Cities like Austin, San Antonio, and Fort Worth use tiered systems that charge more for larger bins or higher waste volumes. Houston’s approach, officials say, is intentionally simpler as the city works to stabilize and rebuild its solid waste department.
The proposal is still in the early stages and would need approval as part of the city’s budget process.