In First Reading, D.C. Council Approves Slightly Different Fiscal Year 2026 Budget

July 15, 2025

The D.C. Council is working to finalize a Fiscal Year 2026 budget that restores over $100 million in programming cuts initially proposed by Mayor Muriel Bowser, though advocates argue the budget still falls short, particularly regarding healthcare coverage for tens of thousands of residents. Despite restoring funding for environmental programs, preserving the Consistently Clean Corridor Initiative, and making adjustments to housing and education allocations, the council maintained Bowser's proposal to narrow Medicaid eligibility for more than 25,000 District residents. Councilmember Zachary Parker plans to introduce a proposal for a graduated surcharge on wealth-generated income to address revenue concerns, while the council voted to strike down proposed changes to Initiative 82, a ballot measure concerning tipped worker wages.

Who is affected

More than 25,000 District residents losing Medicaid eligibility
Tipped workers who were advocating for Initiative 82 implementation
D.C. residents between ages 21-26 affected by Medicaid enrollment deadline extension
78 employees of the Consistently Clean Corridor Initiative whose positions were preserved
Families in congregate housing who received privacy protections
Low-income residents dependent on programs like TANF, SNAP, and public benefits
Teachers and students benefiting from education funding restorations
Tenants and landlords affected by housing preservation and production funding decisions

What action is being taken

The council is restoring more than $100 million in programming cuts proposed by Mayor Bowser
The Medicaid enrollment deadline is being extended from August to October for D.C. residents ages 21-26
The D.C. Alliance Healthcare Plan is being restructured to make it fee-for-service
The council is restoring $15 million in funding for environmental programs
The council eliminated Bowser's sanctuary city repeal proposal
The council is allocating $8 million for rapid rehousing and increasing emergency rental assistance to $13.4 million
The council is maintaining the Consistently Clean Corridor Initiative positions
The council approved an amendment to fund ranked-choice voting

Why it matters

Without adequate healthcare coverage, affected residents may face emergency room bills, struggle to afford rent and food, creating cascading hardships
The budget decisions reflect tensions between maintaining essential services and fiscal responsibility
The debate over revenue generation through taxes on wealthy residents highlights concerns about equitable tax burden distribution
Initiative 82 implementation directly impacts wage predictability and financial stability for tipped workers
Housing preservation and production funding decisions affect tenants' ability to remain housed and developers' ability to build affordable housing
The preservation of public sector jobs, like those in the Consistently Clean Corridor Initiative, provides employment opportunities for District residents
The budget allocations reflect competing priorities in a time of fiscal constraints, with difficult tradeoffs between programs

What's next

The council will hold a second reading of the Fiscal Year 2026 budget on July 28
Between first and second reading, the council will further deliberate on how to distribute the $15 million allocation for environmental programs
Councilmember Zachary Parker will formally introduce his amendment for a graduated surcharge on wealth-generated income before the second reading
The council will address the child tax credit repeal separately from the budget
Council members will continue discussions about housing preservation funding allocations before the second reading
Additional funds may be secured for implementing open primaries before the budget is finalized

Read full article from source: The Washington Informer