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In Final Budget Vote, a Lot of Disappointment

July 29, 2025

of D.C. Council's FY2026 Budget Vote The D.C. Council approved the Fiscal Year 2026 budget during an unconventional Monday evening session, preserving Initiative 82 regarding tipped minimum wage with a compromise that gradually increases it to 75% of the regular minimum wage by 2034. Amid contentious debates and a dispute with the Office of the Chief Financial Officer over $200+ million in funds, the Council added the child tax credit and D.C. Healthcare Alliance to a contingency funding list while defeating a proposed tax increase on wealth. The Council also maintained funding for ranked-choice voting despite attempts to mandate a needs assessment, with Councilmember Christina Henderson emphasizing that 73% of voters had already supported the initiative.

Who is affected

  • D.C. restaurant workers and restaurant owners regarding the tipped minimum wage compromise
  • D.C. families eligible for the child tax credit (placed on contingency list)
  • D.C. residents who use the Healthcare Alliance program (placed on contingency list)
  • D.C. voters who will eventually use ranked-choice voting
  • Councilmember-elect Trayon White and his future constituents in Ward 7
  • D.C. childcare providers and families who rely on childcare subsidies
  • Recipients of emergency rental assistance
  • Students in District public and public charter schools (regarding lead pipe testing)
  • Housing residents who would benefit from Housing Production Trust Fund
  • Small businesses and visitors who would benefit from interactive wayfinding kiosks

What action is being taken

  • The Council is implementing a modified version of Initiative 82 that maintains the current tipped minimum wage of $10 per hour until July 2026, then gradually increases it to 75% of the minimum wage by 2034
  • The Office of the Chief Financial Officer is monitoring District spending and advocating for reserve fund replenishment
  • The Council is establishing a contingency funding list for programs like the child tax credit and Healthcare Alliance to be funded if budget surpluses materialize
  • Councilmember-elect Trayon White is preparing to return to the Council after his election win
  • The Council is allocating $30 million in the Housing Production Trust Fund toward affordable housing preservation
  • The Council is reallocating $10 million from the Housing Trust Fund loan credit line to critical repairs

Why it matters

  • This budget vote addresses critical funding decisions affecting social services, housing, voting systems, and worker wages during what council members describe as "one of the most hectic years in recent D.C. history." The preservation of Initiative 82, albeit with modifications, represents a compromise between restaurant worker advocates seeking higher wages and restaurant owners concerned about business viability. The dispute with the Chief Financial Officer highlights tensions over budgetary authority and spending constraints. The decision to maintain ranked-choice voting funding reflects the Council's commitment to implementing voter-approved initiatives despite some members' concerns about implementation.

What's next

  • No explicit next steps stated in the article

Read full article from source: The Washington Informer