Bracing for the impacts of the Trump Administration's One Big Beautiful Act and tariffs, the city of Detroit has created a reserve fund to help it weather the potential impacts of falling corporate tax revenue.

Detroit had a projected $60.2 million surplus from the 2024-2025 fiscal year, which ended June 30 in Detroit. Earlier this month, Detroit City Council voted to establish a new Corporate Income Tax Reserve Fund , funded by $42 million of that $60.2 million surplus. The city will be able to tap into that fund if corporate income tax revenue comes back lower than expected.

"The thought is that if we have a shortfall in the income taxes, that then this would be a stop gap for us," said Detroit Chief Financial Officer Tanya Stoudemire.

Detroit businesses pay a 2% city corporate inco

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