District of ColumbiaB26-0262Council Period 26 (2025-2026)HouseWALLET

Fiscal Year 2026 Local Budget Emergency Act of 2025

Sponsored By: Phil Mendelson (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

34 provisions identified: 29 benefits, 0 costs, 5 mixed.

More help for affordable housing

The Housing Production Trust Fund gets $100 million and can get up to $10 million more. This money stays available until September 30, 2026. The law also adds $10 million to the Trust Fund (if the CFO certifies resources), $1 million for the Housing Preservation Fund, and $2,950,715 for Emergency Rental Assistance (also CFO‑certified). The Housing Finance Agency gets $18,355,000 for reverse mortgage foreclosure prevention and a credit‑building pilot, with funds available until September 30, 2026. Homeowner Assistance Fund dollars remain available until fully spent.

More funding for paid leave and unemployment

The law provides $139,758,882 to the Universal Paid Leave Fund. Those funds stay available until September 30, 2026. It also provides $181,261,204 to the Unemployment Insurance Trust Fund to pay benefits and keep it solvent. This keeps paid leave and unemployment checks funded for workers who qualify.

UDC funding stays available longer

The University of the District of Columbia gets $229,982,595. These funds do not revert and remain available until September 30, 2026. Money in the Higher Education Incentive Program Fund is also available until that date.

Ballpark fund gets $132 million

The Ballpark Revenue Fund receives $132,217,913. About $12.3 million comes from enterprise funds and about $120.0 million from dedicated taxes. The money supports ballpark operations and related obligations.

Lottery operations and prize coverage

The Office of Lottery and Gaming gets $272,199,697. After notifying the Mayor, the office can increase this amount to transfer more to the General Fund or to cover prizes, agent commissions, and gaming fees tied to unplanned excess revenues.

Major funding for water systems

The law funds core water services. It gives $838,132,574 to the Water and Sewer Authority for operations, with small caps on meeting and reception costs. It adds $8,905,835,000 for construction across wastewater, sewer, water system, and equipment, and adjusts for any federal payments. The Washington Aqueduct also receives $120,316,064 to support water supply. Capital funds stay available until spent.

More funding for Metro and transportation

The law provides $787,599,699 to Metro (WMATA). Dedicated taxes, parking meter WMATA funds, and adult learner transit subsidy funds stay available through September 30, 2026. Pepco payments and interest for undergrounding go to DDOT and never expire until spent. Starting October 1, 2025, DC can sign one‑year or multiyear deals with the National Park Service to plan, build, and maintain transportation on NPS land and spend funds each year of those deals.

Steady funding for charter schools

D.C. public charter schools receive $1.396 billion, paid quarterly, with the first payment within 15 days of the fiscal year start. On July 1, 2026, schools get advances against FY2027: 30% for charters (45% for new charter LEAs opened after December 31, 2025) and 10% for DCPS. Any funds not given through the per‑pupil formula stay available until September 30, 2026. The law also provides $1 million for lead‑pipe testing in charter schools, if the CFO certifies resources.

Convention and sports authority funding

The Washington Convention and Sports Authority receives $260,430,195. The money supports its operations and projects that drive local tourism and events.

Bigger capital plan for city projects

The law adds $1,745,849,000 for capital construction. It includes $1,341,007,000 in local funds, $33,616,000 in local transportation funds, $6,300,000 in federal funds, $52,747,000 from the DC Highway Trust Fund, and $312,179,000 from the federal Highway Trust Fund. Funds stay available until spent and are limited to listed projects. Pay‑As‑You‑Go Capital transfers can increase these amounts.

Spending cap with possible increase

The law caps DC operating spending for Fiscal Year 2026 at the lesser of total revenues or $22,034,524,408. The Chief Financial Officer must apportion and monitor FY2026 appropriations. Local funds can increase by up to $51,522,144 if the September 2025 revenue estimate is higher, FY2025 revenues exceed expenses by November 15, 2025, and the CFO certifies it will not harm the long‑term plan.

Legal aid for low-income residents

The law provides $31,785,256 to the D.C. Bar Foundation for the Access to Justice Initiative. It funds legal aid grants, a poverty lawyer loan repayment program, and civil legal counsel projects. Funds can be spent through September 30, 2026.

Alliance services kept through 2026

The law delays a planned limit on DC Healthcare Alliance services for adults age 21 and older until October 1, 2026. It provides $21,538,938 to support this delay, but the CFO must certify extra local resources first. Enrolled adults keep their current service access until that date.

More money for childcare subsidies

The law sets aside $5,500,000 for childcare subsidies in FY2026. The Chief Financial Officer must certify extra local resources before the money is available. This can lower childcare costs for eligible families.

More help for renters and housing

The law lets DC add any extra federal Emergency Rental Program money it receives in Fiscal Year 2026, so more renters can get help. It also allows up to $1,000,000 more in local funds for the housing department, following specific budget rules.

More support for special education transport

Special Education Transportation gets $133,215,046. On July 1, 2026, the program gets an advance equal to 10% of its FY2027 local funds; this reduces the final FY2027 payment. The money can fund incentives to cut routes that serve two or fewer students.

More support for business districts

The law provides $39,810,000 for Business Improvement Districts. If local law dedicates more revenue to a BID than this amount, the budget can rise so the BID gets the full dedicated funds.

Council operations and home security funds

The D.C. Council gets $39,934,656. Funds can pay up to $50,000 for the Chair’s official reception, staff credential fees (like bar dues), uniforms, limited use of one EV charger, and legal settlements. Up to $390,000 supports home security for Councilmembers (up to $260,000 for assessments and up to $10,000 per member to implement). These funds remain available until September 30, 2026.

Emergency planning, Guard pay, and meals

The law sets aside $60 million for Emergency Planning and Security, adjusted to match what Congress provides. Eligible expenses waiting on federal reimbursement can be charged to this fund now. The Mayor must reimburse the D.C. National Guard for militia‑status emergency services requested by the Mayor. District employees deployed during a declared snow or other emergency can get meals, up to $30 per employee per day.

Flexible use of reserves and relief funds

The law makes all money in the Cash Flow Reserve and Fiscal Stabilization Reserve available for spending through September 30, 2026. It also allows ARPA and CARES funds to be moved among appropriations when the Mayor requests and the CFO certifies, as long as moves follow federal rules and the original purpose.

UDC limits subsidies for nonresidents

The law gives $99,423,270 to UDC’s subsidy account. UDC cannot use it to subsidize nonresident students unless nonresident tuition is at least what comparable public schools in the metro area charge for the year ending September 30, 2026. On July 1, 2026, UDC receives an advance equal to 10% of its FY2027 local funds. Up to $10,600 can fund the President’s reception.

Budget tools for contracts and funds

The law lets the Mayor move operating money to enterprise or capital funds, and move back local funds (from the last four years) to operating, but not bond proceeds. ARPA and CARES funds in this act stay available until fully spent for their original purposes. DC can pay vendor fees tied to recoveries. DC can also pay termination, transfer, or ownership‑change costs for certain FY2026 P3 and on‑site energy contracts if the CFO certifies funds are available; the emergency reserve cannot be used.

Development funds and RFK pause

The Tax Increment Financing Program gets $44.9 million to support projects. The government sets aside $13.0 million to repay past PILOT financing. The RFK Campus Infrastructure Fund receives $0 in this budget.

Medicaid enrollees keep more money

The law sets $500,000 in FY2026 and again in FY2027, FY2028, and FY2029 to raise the Medicaid personal needs allowance. The CFO must certify extra local resources for the funds to be used. This lets Medicaid enrollees keep more of their own money.

More pay help for early educators

The law adds $1,500,000 in FY2026 to the Early Childhood Educator Pay Equity Fund, if the CFO certifies resources. This money supports higher pay for eligible early childhood educators.

Travel help for youth in programs

If you join a District program with overnight travel outside DC, the government can pay for food and lodging. Parents or guardians can be covered too. Payments cannot exceed the GSA per diem rates.

Arts grants stay spendable through 2029

Dedicated taxes for the Commission on the Arts and Humanities go into the Arts and Humanities Fund. Grants obligated in FY2026 can be spent through September 30, 2029.

Funds to repeal a noise rule

The law funds work to repeal section 401 of the Amplified Sound Mitigation Regulation. It provides $608,000 in FY2026, $419,874 in FY2027, $428,561 in FY2028, and $437,429 in FY2029. Funds are available only if the CFO certifies extra local resources.

Police housing aid and DNA testing

The law funds MPD housing incentives: $459,000 in FY2027 and $179,628 in FY2028, if the CFO certifies resources. It also provides $3,500,000 in FY2026 for in‑house DNA testing at the Department of Forensic Sciences, subject to CFO certification. These steps support officer recruitment and public safety investigations.

Funding for green finance projects

The law gives $3,750,000 to the Green Finance Authority. Funds stay available until spent to support green finance activities.

Funds to run the health marketplace

The law provides $41,634,470 for the DC Health Benefit Exchange. This funds marketplace operations and enrollment support this fiscal year.

Run retiree health benefits trust

The law provides $8,765,834 to administer the Other Post‑Employment Benefits Trust. The money supports managing retiree health benefit funding and the trust.

No funds for RFK stadium and Mayor’s Arts Awards

The law blocks using this act’s funds for RFK stadium development unless it follows the RFK Campus Redevelopment Act of 2025. It also bans any money in this act from paying for the Mayor’s Arts Awards.

Pension board operations from fund earnings

The law uses $39,739,954 from retirement fund earnings to pay the DC Retirement Board’s legal, investment, and admin costs. This supports pension management without new taxpayer money.

Sponsors & Cosponsors

Sponsor

Phil Mendelson
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 24 • No: 0

House vote • 7/28/2025

Other

Yes: 12 • No: 0