With D.C. Budget Up in the Air, Mayor Bowser Starts Spending and Hiring Freezes

April 16, 2025

D.C. Mayor Muriel Bowser has announced a government-wide freeze on new hires, overtime spending, pay raises, promotions, and non-personnel expenditures in response to the District's Fiscal Year 2025 budget crisis. The freeze, effective Tuesday, will likely lead to furloughs and government facility closures that City Administrator Kevin Donahue will recommend in late April, aiming to save over $400 million. Despite Bowser's increase of the District's maximum spending cap by 6% (over $500 million) to help close a $1.

Who is affected

D.C. government employees (through hiring freeze, potential furloughs)
District residents who rely on government services and programs
Students and users of D.C. public schools (though facilities are exempt from closures)
Users of St. Elizabeths Hospital, Department of Behavioral Health Stabilization Center, Department of Human Services shelters, and comprehensive psychiatric emergency program facilities (all exempt from closures)
Vulnerable residents who depend on programs like emergency rental assistance and health programs

What action is being taken

A government-wide freeze on new hires, overtime spending, pay raises, promotions, and non-personnel expenditures has been implemented
Mayor Bowser has increased the District's maximum spending cap by 6% (over $500 million) as allowed by a 2009 law
City Administrator Kevin Donahue is preparing recommendations for furloughs and facility closures
District agencies can apply for waivers for expenditures that generate revenue, promote public health and safety, or ensure compliance with laws
The Bowser administration is preparing a supplemental budget for the D.C. Council

Why it matters

The budget crisis creates a $1.1 billion gap that threatens essential District services and programs
The freeze is only a "stopgap" measure that doesn't fully address the underlying issue
The District has money available but lacks congressional approval to spend it on critical services for residents
Programs supporting vulnerable residents, including emergency rental assistance and health programs, could be eliminated or reduced
The situation represents another instance of federal control limiting D.C.'s home rule capabilities

What's next

City Administrator Kevin Donahue will present a plan detailing furloughs and government facility closures within 10 days of the order's start
The Bowser administration will present a supplemental budget to the D.C. Council within a 30-day window
Congress needs to act on the District of Columbia Local Budget Act to resolve the budget situation
No explicit next steps stated regarding the House's return from its two-week recess

Read full article from source: The Washington Informer