The Montgomery City Council on Tuesday approved an amended resolution backing financial support for Jackson Hospital, authorizing up to $15 million from the city if Montgomery County, the State of Alabama and other governments agree to contribute equitable shares.

The vote effectively replaced terms at the center of Mayor Steven Reed’s veto last week, removing a proposed 60-40, city-county split and tying any city outlay to a multi-party agreement.

City officials said the substitute language reflects the council’s intent to participate without placing a disproportionate burden on municipal taxpayers and aligns with Reed’s call for a regional cost-share.

The council’s action follows weeks of uncertainty for the 344-bed nonprofit hospital, which filed for Chapter 11 in February after defaulting on bond payments in 2024.

A federal bankruptcy judge last week approved additional debtor-in-possession financing to keep the hospital operating through the holidays, and the lender said further funding would depend on substantial government support.

Earlier this month, city leaders publicly discussed a $50 million local–state package concept, $15 million from the city, $10 million from Montgomery County and $25 million from the state, though county and state commitments were still being negotiated.

Reed vetoed the measure and said he favored a county-led structure.

Jackson Hospital officials and advisors have told the court and local leaders that the facility needs a significant public infusion to stabilize operations, with figures ranging from $50 million in near-term aid to a lender’s indication that as much as $100 million in government support could be required to unlock additional financing.