South Bend’s Office of Sustainability could see a 70-percent budget cut in 2026. That includes the elimination of funding for the project manager position and the Energy Assistance & Solar Savings Initiative grant program, which helps nonprofits become more energy efficient.
Executive director of community investment Caleb Bauer says the federal tax credits the program was meant to complement have been eliminated. "This program was designed to be paired with the federal incentive," Bauer said. "Without it, in my opinion, it’s not going to create the same type of impact that we had seen historically in the program, and so that’s why we’re taking a step back from it at this time.”
The cuts will leave the sustainability office with only one full-time employee, but the city still has federal grant funding available for outside contractors. Bauer said the end of some temporary federal programs and Indiana’s property and income tax reform forced the city to make some tough choices.
“The Senate Bill 1 impacts are going to be substantial, and so, we’ve tried to be responsible and make sure we’re preserving services,” Bauer said.
Hoosier Environmental Council Executive Director Sam Carpenter says sustainability is an unfortunate area to cut. "A lot of these programs through the Office of Sustainability impact quality of life," Carpenter said. "They provide protection in a changing climate or even extreme heat environments. Then, they have an economic return on investment that’s pretty good."
He said those who’d benefit the most from sustainability programs are the least likely to benefit from Senate Bill 1’s tax breaks.
As for how the cuts might impact South Bend’s climate goals, Bauer downplayed the city government’s role. “The climate action plan and the goals laid out – they are a community effort, and so it’s always been incumbent upon the broader community for us to meet those goals,” Bauer said.
He said the city still hopes to lead in this area, for example, by installing solar arrays at city facilities.
And he notes that it’s not just the office of sustainability that’s taking a cut. He says the department of community investment is cutting a total of four positions, including the one in the sustainability office.
South Bend’s 2026 budget will be up for final approval on October 13.
