From f30bfcf36a6621e4b31cbd21042ab22fd07ea8b5 Mon Sep 17 00:00:00 2001
From: user <70670632+stuxf@users.noreply.github.com>
Date: Thu, 30 Apr 2026 20:36:14 -0700
Subject: [PATCH] add budget reservation disable flag

---
 litellm/proxy/auth/user_api_key_auth.py       |  6 +++-
 .../proxy/auth/test_user_api_key_auth.py      | 29 +++++++++++++++++++
 2 files changed, 34 insertions(+), 1 deletion(-)

diff --git a/litellm/proxy/auth/user_api_key_auth.py b/litellm/proxy/auth/user_api_key_auth.py
index 2495d33a5c..ea7bad2bf4 100644
--- a/litellm/proxy/auth/user_api_key_auth.py
+++ b/litellm/proxy/auth/user_api_key_auth.py
@@ -1909,7 +1909,7 @@ async def _reserve_budget_after_common_checks(
     end_user_object: Optional[LiteLLM_EndUserTable] = None,
 ) -> None:
     user_api_key_auth_obj.budget_reservation = None
-    if skip_budget_checks:
+    if skip_budget_checks or _is_budget_reservation_disabled():
         return
 
     from litellm.proxy.spend_tracking.budget_reservation import (
@@ -1931,6 +1931,10 @@ async def _reserve_budget_after_common_checks(
     )
 
 
+def _is_budget_reservation_disabled() -> bool:
+    return get_secret_bool("LITELLM_DISABLE_BUDGET_RESERVATION", False) is True
+
+
 def _should_skip_budget_checks(
     request_data: dict,
     route: str,
diff --git a/tests/test_litellm/proxy/auth/test_user_api_key_auth.py b/tests/test_litellm/proxy/auth/test_user_api_key_auth.py
index 83e4788fa1..8489a7b0f6 100644
--- a/tests/test_litellm/proxy/auth/test_user_api_key_auth.py
+++ b/tests/test_litellm/proxy/auth/test_user_api_key_auth.py
@@ -77,6 +77,35 @@ async def test_should_clear_stale_budget_reservation_when_budget_checks_skip():
     assert user_api_key_auth_obj.budget_reservation is None
 
 
+@pytest.mark.asyncio
+async def test_should_skip_budget_reservation_when_disabled():
+    user_api_key_auth_obj = UserAPIKeyAuth(
+        token="test_token",
+        spend=0.0,
+        max_budget=1.0,
+        budget_reservation={
+            "reserved_cost": 0.5,
+            "entries": [{"counter_key": "spend:key:test_token"}],
+        },
+    )
+
+    with patch.dict(os.environ, {"LITELLM_DISABLE_BUDGET_RESERVATION": "true"}):
+        await _reserve_budget_after_common_checks(
+            user_api_key_auth_obj=user_api_key_auth_obj,
+            request_data={"model": "gpt-4"},
+            route="/v1/chat/completions",
+            llm_router=None,
+            team_object=None,
+            user_object=None,
+            prisma_client=None,
+            user_api_key_cache=DualCache(),
+            proxy_logging_obj=MagicMock(),
+            skip_budget_checks=False,
+        )
+
+    assert user_api_key_auth_obj.budget_reservation is None
+
+
 @pytest.mark.asyncio
 async def test_should_not_reuse_cached_key_object_for_request_state():
     key_cache = DualCache()