New Orleans Faces Budget Cuts, Furloughs, and Layoffs

City workers and community advocates question the impact of austerity measures on critical programs and services.

Jan. 27, 2026 at 5:23pm

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The city of New Orleans is facing a $222 million budget deficit, leading to cuts, furloughs, and layoffs that have rocked City Hall. Dozens of city employees, including political appointees and staff from offices like Youth and Families and Resilience and Sustainability, have lost their jobs. Community advocates worry the cuts will undermine important programs and services, from youth initiatives to climate adaptation efforts.

Why it matters

The budget crisis and resulting austerity measures in New Orleans raise concerns about the city's ability to maintain critical services and programs, especially those focused on youth, equity, and sustainability. The layoffs and furloughs could have long-term impacts on the community and the city's capacity to address pressing issues.

The details

As part of efforts to address the $222 million budget deficit, the Moreno administration has instituted layoffs, furloughs, and other cost-saving measures. More than 30 employees received termination notices, including the entire staff of the Office of Youth and Families and the Office of Human Rights and Equity. The Office of Resilience and Sustainability also lost about a third of its staff. Beyond the layoffs, the city plans to furlough around 860 workers one day per pay period and claw back $14.7 million in American Rescue Plan Act funding, including $5 million for youth programming.

  • On January 6, dozens of city employees were notified that their jobs would be terminated effective January 12, the day of Mayor Moreno's inauguration.
  • In mid-December, the director of the Office of Youth and Families was informed that her position and her staff would be cut as part of the 2026 budget.
  • On January 17, Mayor Moreno announced that furloughs would be limited to only impact employees making over $40,000 annually.

The players

Helena Moreno

The newly elected mayor of New Orleans who is tasked with addressing the city's $222 million budget deficit.

Carson Rapose

A former employee in the city's Project Delivery Unit who was terminated as part of the layoffs.

Kahlida Lloyd

The former director of the Office of Human Rights and Equity, which was eliminated as part of the budget cuts.

Asya Howlette

The former director of the Office of Youth and Families, which was also eliminated as part of the budget cuts.

Greg Nichols

The former director of the Office of Resilience and Sustainability, which lost about a third of its staff due to the layoffs.

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What they’re saying

“It's really hard to quantify the damage. It was like, 'We don't care who you are. We don't care what expertise you brought in. We need to sever ties, and, you know, let bygones be bygones.'”

— Chris Lang, Former employee, Office of Resilience and Sustainability (Verite News)

“Access is opportunity. It's not just about getting to school. It's not just about getting to jobs. … We heard from the youth that this is about having a bus to take you to go do things that you can enjoy and love about your city.”

— Courtney Jackson, Executive Director, RIDE New Orleans (Verite News)

“Caring for young people and making it easy to have young people in the city of New Orleans is economic infrastructure. You did not do your due diligence as a leader and ask me every question that you needed to ask or make sure you understood the impact of a decision you were making that directly impacts people's lived experiences.”

— Asya Howlette, Former Director, Office of Youth and Families (Verite News)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The budget cuts and austerity measures in New Orleans have raised concerns about the city's ability to maintain critical services and programs, especially those focused on youth, equity, and sustainability. The layoffs and furloughs could have long-term impacts on the community, underscoring the difficult tradeoffs facing city leaders as they work to address the budget crisis.