The Council passed a budget that restored the holes in the social safety net, but with one-time funds. That means next year we’ll have an even bigger hole to fill. Councilmember Nadeau speaks to what was accomplished in this year’s budget process and why she’s proposing a Wealth Proceeds Tax to generate revenue and make sure that the budget isn’t balanced on the backs of those who can least afford it.

Remarks at the second and final reading of the FY27 budget

June 23, 2026

I want to thank each and every Committee Chair for their initial contributions, as well as the Chairman and the budget office team for restoring a significant number of gaps.  

We all know how bad this budget was. We’ve talked about it.  We’ve made it less bad. Chairman has done great job filling gaps.  

In my final committee budget as a councilmember, we were able to send funds to every other committee to help fill gaps in the safety net created by the Mayor’s proposal, including to support more people in temporary housing, and to expand food access, wellness for seniors, and programming for teens. We found ways to take small actions, such as licensing and building code changes, to effect big results, like building more housing and speeding up business contracting issues.  

And even more, the Council as a whole plugged in many funding gaps and made numerous investments such as,: adding millions in healthy food programs; increase the availability of public restrooms across the District; restore cuts to the Office of Attorney General they can continue to best protect the rights of DC residents; lift the age moratorium for new healthcare enrollees; restore some equilibrium to the childcare subsidy program; restore the Pay Equity Fund and Access to Justice. We successfully averted the Mayor’s proposed step-down in TANF benefits, worked to restore some funds to Credible Messengers and Pathways.  

The budget also includes much-need investments for Ward 1, including:  

• $1.0 million in one-time funding for a grant to enable the Rosemount Center to purchase its building  

• $200,000 in one-time funding for grants to support the implementation of the Columbia Heights and Mount Pleasant Vision Framework for Public Realm Design  

• $241,000 to support ongoing senior programming at the VIDA Senior Center  

• $15 million over four years to renovate the Park View Recreation Center  

• $3 million over four years to build new park facilities and improve small parks in the Lower Georgia Avenue Cluster  

• $500,000 to implement the Columbia Heights and Mount Pleasant Vision Framework for public realm design in Ward 1  

• Funding to implement the Place-Based Substance Use Disorder Outreach Act 

• $200,000 in FY 2028, and $600,000 over the Financial Plan, for business grants to support pedestrian activation of 18th Street  

In May, we were handed a budget that was balanced on the backs of our most vulnerable residents. A budget that asked nothing of our most fortunate residents. And although the Council has identified one-time funding to address many – though not all – of the funding gaps, this budget still asks nothing of people who can afford more. 

I proposed an amendment that would have implemented a small surtax on passive income–capital gains and some other investments that require no work by the investor— on the wealthiest of residents making $400K and up.  

The tax was estimated to raise close to $200 million in the first year and over $100 million in subsequent years. 

I appreciate the Chairman’s commitment to continue this discussion of taxes and revenue with a public hearing in the fall. Because the next Mayor will face a significant structural debt with the budget we are passing now.  

I’ll be introducing permanent legislation soon for a Wealth Proceeds Tax, so it can be given robust consideration, acknowledging that we tax earned income on people’s labor significantly more than unearned income. 

I also ask for us to consider the Tax and Revenue Commission Establishment Act, a permanent bill I introduced last year and in the previous council period. 

We are still operating in the shadow of a tax revision commission that failed to do its job, and for too long, this Council has buried conversations about revenue and long-term financial stability. If we keep suppressing legislation that proposes a better tax system, future councils will continue to have no choice but to try and address revenue shortfalls through the budget process.  

This is my last vote on a local budget act as Ward 1 Councilmember. Having now worked on 12 annual budgets, I can say with some experience that not only do the residents of the District deserve a more just tax system and social safety net – we all deserve a better way of doing business. 

Finally, I would like to thank the Chairman and his team for today’s updated budget, which includes a huge win for Ward 1. This capital plan fully funds an outstanding budget gap so we can finally break ground on the Bruce Monroe New Communities site. We are more than a decade into this effort to deliver on promises to replace all public housing units at Park Morton, expand affordable housing options and move forward a catalytic investment in Lower Georgia Avenue. And with today’s vote we are fulfilling that promise. Thank you.