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Initial takeaways on the FY26 Budget

We have always known this would be a difficult budget – attacks on our federal workforce, followed by attacks on our local spending, and additional funding constraints as a result of draconian federal policies have led to a perfect storm of budget pressures.  

But even in a difficult budget year, District residents deserve a budget that invests in childcare, early childhood educator pay, affordable housing, social services, and the things that support and power our city. 

Budget of 1000 cuts 

I am attending budget oversight hearings every day – usually several a day – and learning more and pushing back on funding reductions, hidden taxes, and policy maneuvers. Here are some of my initial takeaways: 

  • Behavioral health services. At Monday’s Health Committee hearing, I asked about what appears to be a possible reduction in funding for critical behavioral health services provided by HIPS in the area of 7th & T streets. In the short time since the implementation of their programming, non-fatal overdoses have dropped by half. The behavioral health budget also zeros out the community navigator program, which serves U Street, lower Georgia Ave., Columbia Heights, and Mount Pleasant. Community navigators provide substance use disorder and other social services to residents in commercial corridors. 
  • Education. The Mayor’s budget funds pay equity for early childhood teachers (the Pay Equity Fund) for FY26, but there’s no guarantee for following years. The budget cuts Educator Wellness grants by more than half. The Bridge the Gap program, which funds 100 experiential learning and school trips per year is zeroed out in the budget; this means that kids in wealthy schools will have opportunities – because parents will fundraise – and the rest will not. The budget also slashes funding to the Community in Schools program, which provides wraparound supports to nearly 5,000 students in FY25. Cutting the program entirely, without an off-ramp, leaves schools and their students in limbo. 
  • Human services. When we received the Mayor’s proposal, I was shocked to learn that it includes substantial changes to the Temporary Assistance for Needy Families program. It cuts the cost-of-living increase at a time when prices continue to rise, and it sets an arbitrary cut-off date for assistance and adds financial penalties for recipients. These reverse the reforms Council implemented when I was Chair of the Health and Human Services Committee, reforms that made our program a model for others around the country. These rollbacks will turn the program back to the draconian policies of the 1990s that were proven to be ineffective and condemned by a DHS-convened working group. 
     
    In a hearing this week, I asked DHS why they are pushing residents off of TANF, while failing to expand funding to Career Map, the main program that empowers people to step out of poverty into a career path. This program has never received enough support to effectively do this.  
  • Policies that don’t belong in the budget. The Mayor has dropped at least six major pieces of policy that have nothing to do with the budget into her proposal: the not-ready-for-prime-time RFK stadium deal; the misguided proposed repeal of the tipped minimum wage (I-82), substantial changes to street vending that are in conflict with Council’s policies; elimination of labor protections on large government projects; a significant weakening of protections for tenants; and an attempt to undo D.C.’s law that protects immigrants regardless of immigration status. None of these has a reason to be in the budget, and all should instead be considered through the regular legislative process (if at all). 
  • Tax choices. The budget also includes some questionable tax moves. One small example of bad tax policy, indicative of the larger problem: the Mayor proposes bringing back the “Qualified High Technology Company” tax credit – which Council scaled back because the Chief Financial Officer’s research clearly showed it to be ineffective at attracting new companies, resulting in a net loss of revenue for the District. The Mayor’s own budget presentation touts the District as “the #1 state for tech careers.” So why is she restoring this program?  

Ward 1 impacts 

We’ve been digging in to see what impact the budget will have on Ward 1-specific programs and residents. There’s at least a little good news, but we also have work to do to reinstate funding for some programs the Mayor defunded: 

  • Violence prevention. Violence prevention services in Ward 1 would be cut by half. At a Judiciary & Public Safety Committee oversight hearing this week I was flabbergasted to hear the Office of Neighborhood Safety & Engagement had used data from 2017(!) to make decisions about where violence interruption resources should be assigned in Ward 1. The ONSE director also testified that ONSE, which has been underfunded in the past, will be able to adequately cover all of Ward 1 with even less funding next year. 

 
ONSE included a neighborhood that hasn’t ever seen crew-based violence and left out at least one neighborhood – Park View – that is seeing that kind of violence and has been for quite some time. Time and again, the executive branch has failed to support and has worked to undermine violence interruption programs in the District. This in turn, undermines the public’s trust in the program. I’ll be fighting to get those programs funded again. 

  • Bus priority projects. The budget cuts the initiative to add dedicated bus priority projects throughout the District—we don’t yet know if that would include the proposed lanes for Georgia Ave, U Street, or Florida Avenue NW. These bus priority lanes have greatly improved public transit service and road safety wherever they are built. 
  • Neighborhood support teams. And the budget cuts Main Streets across the District, clean teams, and community navigators, all programs that help keep our small business corridors safe, clean and vibrant. And all have programs in Ward 1 that could be impacted. 
  • Parks and recreation. There is some good news for Ward 1 in the Department of Parks and Recreation budget, which got its review in the Committee on Facilities on Thursday. Funding has been maintained for Amigos Park, Rita Bright Center, Bruce Monroe Park, Hobart Twins, Park View Recreation Center, and improvements to parks in Columbia Heights and Mount Pleasant, and the final touches on the Portland Loo in Walter Pierce Park. I was very excited to hear that community engagement on Bruce Monroe Park will begin this summer!  
  • Housing. The proposed budget adds and retains funds to advance key housing projects in Ward 1, including at Bruce Monroe and Park Morton. These projects will finally provide hundreds of units of housing for income-restricted residents as well as park space. 

What next? 

The Mayor’s budget is balanced on the backs of working people and our most vulnerable residents – while giving away a billion dollars to billionaires and reducing regulations and fees on businesses. This is especially true of the RFK stadium deal – every day it seems we learn something more about just how much is being given away for free. The latest: billions of dollars in land development value for $1 per year. 

As we’ve seen, repeatedly for over a century, the benefits of this kind of economic development, if any, will vanish just as quickly as they materialize. And D.C. residents get stuck with the bill for a generation.  

Investments in affordable childcare, high-quality schools, public safety, good air quality, and a strong support system are some of our most powerful engines of economic growth.  

As in past years it will be up to us on the Council to reverse harmful cuts to critical programs. I’ll also be looking for common sense tax reforms that meet the needs of residents and small businesses, with everyone paying their fair share. The goal: to ensure the FY26 budget supports our residents, businesses, and communities and builds a path to prosperity for all, not just for our wealthiest residents. 

There are still multiple budget oversight hearings to go – in my Public Works & Operations Committee and in others. I encourage you to sign up to testify.  

You can pour through the budget yourself on the D.C. Council Budget Office website. 

Related

Allow D.C. to continue spending at already approved FY25 levels and vote against any CR that hurts the District.
I joined my D.C. Council colleagues on Capitol Hill to meet with House Republicans and explain how their proposed continuing resolution will hurt D.C. by forcing us to slash public safety and education funding.
“The Council has gone through yet another budget process while the commission has sat on its hands.”

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