District of ColumbiaB26-0264Council Period 26 (2025-2026)HouseWALLET

Fiscal Year 2025 Revised Local Budget Temporary Act of 2025

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 2 benefits, 1 costs, 9 mixed.

More safety funding and emergency account transfers

The law adds about $30.17 million overall to public safety and justice funding for fiscal year 2025. Police gain about $19.49 million, Corrections gains about $12.23 million, and Youth Rehabilitation gains about $11.78 million. Fire and emergency medical funding shifts $152.30 million from local funds to other funds, rather than gaining that amount. The Chief Financial Officer must transfer $152.30 million from the General Fund to the fire reform fund and $7.70 million to 911 and 311 assessments. Those transfers are available under the revised fiscal year 2025 budget plan, not as household payments.

Dedicated balances move into general spending

The Chief Financial Officer must move listed fund balances and revenue into the General Fund during fiscal year 2025. This overrides existing rules that direct deposits or restrict how those funds are used. Listed transfers include about $15.96 million from Litigation Support, $11.79 million from insurance market stability, and $10.09 million from Fair Elections. Child Wealth Investment transfers include about $8.62 million and $9.42 million from two fund codes, alongside licensing and health balances. The transferred money is available as specified in the approved fiscal year 2026 Budget and Financial Plan.

Transit and neighborhood projects gain and lose

The law changes fiscal year 2025 construction funding, adding about $93.20 million for regional transit improvements and allocating $49.50 million under PRIIA. It cuts about $33.93 million from Bus Priority, $27.78 million from Backus Expansion, and $14.73 million from Bancroft Elementary's annex. Southeast Library loses about $15.56 million, and an archives project loses about $56.38 million. Rumsey Aquatic Center gains $7.38 million, Fort Davis Recreation Center gains $2.60 million, and Southwest Town Center gains $4.50 million. School swing space gains $3.91 million; the capital chart also allocates about $52.18 million for the RFK campus and $7.30 million for National Theatre.

Workforce cuts and reserve repayment increases

The law reduces total fiscal year 2025 budget funding by about $236.86 million, applying as of September 18, 2024. Financing accounts lose about $177 million overall, including $187.85 million from Workforce Investments and $68.10 million from loan repayments. It adds about $62.19 million for repaying the Contingency Reserve Fund and $15 million for emergency planning and security. These are government account changes, not household loan or benefit rules. The temporary act expires 225 days after taking effect.

Three District theaters receive targeted grants

The arts commission must issue three grants in fiscal year 2025 using the Large Capital Grants program. National Theatre receives $4 million to buy and repair the theater. Howard Theatre receives $500,000 for renovation-related debt payments and operating costs. Lincoln Theatre receives $285,000 for repairs and renovations. These grants go to the theaters, not households.

District energy fund minimum is halved

The law lowers a specified Sustainable Energy Trust Fund minimum from at least $7 million to at least $3.5 million. It also sets the fund's specified fiscal year 2025 amount at about $34.42 million. These are separate funding figures; the text does not explain their relationship. The law does not specify a household payment or energy bill change.

District offices face uneven funding cuts

The law cuts District government administration funding by about $9.44 million for fiscal year 2025. Local funding falls by about $14.09 million, while other funding rises by about $4.65 million. General Services gets about $6.06 million more. The technology office loses about $2.56 million, and the Inspector General loses about $2.45 million. These changes do not directly set household payments or benefits.

District transportation and operations funding shrinks

The law cuts District operations and infrastructure funding by about $41.73 million for fiscal year 2025. The transportation department loses about $6.12 million, and Energy and Environment loses about $20.58 million. Public Works receives about $5.20 million, and the regional transit agency receives about $1.30 million. Money deposited in the Tree Fund remains available through September 30, 2025. These budget changes do not set fares, household fees, or service rights.

Human services grow while Medicaid funding falls

The law adds about $30.88 million to human support services overall for fiscal year 2025. Human Services gets about $51.94 million more in local funds, while Behavioral Health gains about $3.09 million overall. Medicaid payments lose about $13.48 million, included in Health Care Finance's net cut of about $19.26 million. Beginning September 18, 2024, the Healthy DC fund provision drops fiscal year 2025 and keeps fiscal year 2026. These changes do not set individual benefit amounts or eligibility.

Paid leave fund transfer rules repealed

The law repeals two rules governing transfers from the District's Universal Paid Leave Implementation Fund. The supplied text does not explain what those rules required. It therefore does not establish whether this repeal increases or reduces paid leave funding. No change to household eligibility or benefit amounts can be determined from this text.

Less funding for housing and development

For fiscal year 2025, the law cuts economic development and regulation funding by about $34.73 million. This includes $21 million from the affordable housing subsidy, $5.12 million from housing services, and $4.50 million from planning. It separately cuts enterprise and other funds by about $43.06 million. Those cuts include $38.50 million for development financing payments, $1.87 million for tax-increment financing, and $858,473 from housing funding. The Washington Convention and Sports Authority gets $214,000 more; these changes do not set household payments or eligibility.

Special education gains amid school budget cuts

The law adds about $8.05 million overall to District public education funding for fiscal year 2025. Non-Public Tuition receives $8 million more, and Special Education Transportation receives $17.07 million more. These additions are partly offset by cuts to education agencies, public schools, libraries, and other education accounts. The budget changes do not set a family's payment amount or eligibility.

Sponsors & Cosponsors

Cosponsors

Phil Mendelson
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 35 • No: 2

House vote • 9/17/2025

Final Reading, CC

Yes: 13 • No: 0

House vote • 7/28/2025

Other

Yes: 11 • No: 1