New Norton Bill Targets Investment for D.C.’s Neglected Neighborhoods

December 11, 2025

Delegate Eleanor Holmes Norton has reintroduced legislation to designate low-income D.C. neighborhoods as federal Empowerment Zones, aiming to restore tax incentives that expired in 2011. The District is experiencing significant economic challenges, including substantial federal workforce reductions, declining employment that lags behind pre-pandemic levels, and weakened investor confidence exacerbated by remote work trends. Norton's bill would incorporate D.C. into the national Empowerment Zone program, providing tax benefits to qualifying neighborhoods that meet poverty and unemployment thresholds.

Who is affected

Low-income neighborhoods in Washington, D.C.
Federal employees facing mass firings
D.C. residents experiencing employment losses (1.07% workforce reduction)
Businesses and potential investors in the District
Real estate investment trusts with D.C. holdings
Maryland workers (0.51% job losses)
Virginia workers (0.26% job losses)

What action is being taken

D.C. Delegate Eleanor Holmes Norton reintroduced legislation on December 9 to designate low-income D.C. neighborhoods as federal Empowerment Zones
The Trump administration is conducting mass firings of federal employees, implementing budget cuts, and proposing relocation of federal agencies

Why it matters

This legislation matters because D.C.'s economic foundation is severely weakened, with the city experiencing the highest percentage of job losses in the U.S. this year. The District's employment still trails pre-pandemic levels, real wages have declined, business applications have fallen, and investor interest has stagnated. The tax incentives provided through Empowerment Zone designation have a proven track record of spurring investment in economically distressed areas, and Congress previously recognized their effectiveness in D.C. before allowing them to lapse in 2011. Without intervention, the District's most vulnerable communities will continue to struggle with uneven growth and lack the tools needed to attract business activity and job creation during this post-pandemic economic crisis.

What's next

No explicit next steps stated in the article

Read full article from source: The Washington Informer