All Roll Calls
Yes: 143 • No: 33
District of ColumbiaB26-0265Council Period 26 (2025-2026)HouseWALLET
Fiscal Year 2026 Budget Support Act of 2025
Sponsored By: Phil Mendelson (Democratic)
Became Law
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Bill Overview
Analyzed Economic Effects
133 provisions identified: 69 benefits, 27 costs, 37 mixed.
Prince Hall property tax refund and exemption
Lots 37 and 828 in Square 333, when used for the Prince Hall Foundation’s purposes and not exclusively commercial, are exempt from tax, transfer, and recordation taxes. In FY2025, unpaid tax on the property is forgiven. In FY2026, unpaid tax for Tax Years 2022–2025 is forgiven and paid taxes (with penalties and interest) for those years are refunded to the payor. The total of forgiveness and refunds is capped at $1,284,271.
Tax relief for community land trust homes
The law forgives and refunds transfer, recordation, and related penalties and interest for CLT transfers since October 1, 2018. It also forgives and refunds real property taxes, penalties, and interest since that date, and for CLT‑owned properties through September 30, 2025. If a CLT owns the land under a resale‑restricted home, the land’s assessed value equals average annual ground rent divided by 0.10, capped at fair market value. Occupants under a CLT land lease count as owners for the homestead deduction. Transfers to CLTs are exempt from transfer and recordation tax.
Charter educators get pay boost funds
OSSE pays $30,785,832 in School Year 2025–2026 to public charter LEAs to raise educator compensation. Each LEA must promise to use the money only for educator pay and pay it out during that school year.
More pay for early childhood educators
The Pay Equity Fund includes $70 million for FY2025 and $72,126,902 for FY2026 to raise educator pay. From January 1, 2025 through September 30, 2026, child care centers that take Fund money must pay minimum salaries for assistant and lead teachers as set in the law’s tables.
Stipends for WMATA board members
District‑appointed WMATA Board members who are not District employees or public officials get $20,000 per 12‑month period. Alternate members get $250 for each day they serve in place of a principal member to count toward a quorum.
Bigger grants for Chinatown businesses
The law raises the maximum Chinatown grant from $125,000 to $250,000 per award. Eligible recipients can now receive up to $250,000 on a single grant. That is an increase of $125,000 over the prior cap.
Baby Bonds program repealed
The law repeals the District’s baby bonds program. No new accounts or deposits are created under that law. The law does not set a replacement benefit.
Lower TANF after 60 months; no inflation
Starting October 1, 2026, if your TANF unit has an adult and has received 60 months of TANF, your District‑funded benefit is cut from the FY2026 level: 70% in FY2027, 50% in FY2028, 25% in FY2029, and the same level in FY2030 and later. Exemptions in law still apply. Cash assistance does not rise for inflation in FY2027–FY2030. The law also raises a related statutory threshold from 6% to 25%, changing when a program trigger applies.
Tighter rules for DC Health Care Alliance
Beginning October 1, 2025, the Mayor may limit Alliance coverage for adults 21+ to primary care, hospital care, emergency transport, prescriptions, and durable medical equipment, and may limit or exclude some services for those under 21. New enrollment stops for ages 26+ on October 1, 2025, and for ages 21+ on October 1, 2026. People who turn 21 between October 1, 2025 and September 30, 2027 are exited at age 21. Income limits depend on when you enrolled: up to 210% FPL if enrolled by September 30, 2025; 133% FPL for enrollments between October 1, 2025 and September 30, 2026; and 19% FPL for enrollments between October 1, 2026 and September 30, 2027. The rules require two forms of residency proof but allow exceptions. A 90‑day renewal grace period applies, with retroactive coverage back to the prior certification period if you are found eligible in that window.
DC child tax credit repealed Oct 2024
The District’s child tax credit statute is repealed. The repeal applies starting October 1, 2024. This ends the local legal authority for that credit for affected tax years after that date.
New obligations for Chinatown tax breaks
If a listed Square 485 property gets a tax abatement issued after October 1, 2025, the owner must lease space to or operate at least one Chinatown cultural business and run an Asian market open to the public. In the first year of the abatement, the owner must donate at least $300,000 to the city’s Chinatown Long‑Term Lease Grant program. These obligations last during the abatement.
7.5% tax on commercial bingo
Operators must pay a 7.5% tax on gross receipts from selling or charging to play commercial bingo. Your tax equals 7.5% of those gross receipts.
More funding for civil legal help
The Access to Justice Initiative now includes LRAP and the Civil Legal Counsel Projects Program. Each year, money goes to the Bar Foundation to fund the Initiative. The Initiative can fund nonprofit partners, including a shared legal interpreter bank, to help low‑income residents.
Child support not counted for benefits
Beginning October 1, 2025, agencies do not count current monthly child support and voluntary child support as income when they decide public assistance eligibility and benefit levels. This can help you qualify or increase your benefit. The law also references up to the first $200 under section 519(c)(5).
New basic health program option
The DC Health Benefit Exchange must set up and run a basic health program under federal Affordable Care Act rules. This creates a state‑run coverage option for eligible residents.
New ombudsman and funds for public benefits
The Health Care and Public Benefits Ombudsman Program now helps uninsured people, insured people, and those applying for or getting public benefits like SNAP and TANF. The law creates an Interim Disability Assistance Fund that only pays for that program and does not lapse at year‑end. It also creates the Healthy DC and Health Care Expansion Fund to support Healthy DC and other medical help; any money left in that fund at year‑end goes to the General Fund.
Clearer rules for homebuyer assistance
DHCD must post a dashboard showing funding, rules, and processing times. If you completed required counseling, you have at least two years to receive help. The Mayor must fund applicants on a rolling basis, with priority for low‑income residents, seniors, displaced residents, and residents with disabilities. If money runs out, your eligibility notice lasts at least through the next fiscal year when money is available.
More help to buy a DC home
The Home Purchase Assistance Fund is a Mayor-run special fund. It can give loans, down payment help, and short‑term financing to low- and moderate-income buyers and eligible District employees. You can use this with other home assistance programs. Any money left at the end of the year moves to the District’s General Fund.
New grant fund for homeowners
The Targeted Homeowner Grant Fund is created and run by the Mayor. Money approved for the program goes into this fund and pays grants and admin costs. No more than 5% of authorized annual spending can go to admin. At fiscal year-end close, any leftover money moves to the District’s General Fund.
Rent and income limits for nonprofit rentals
Nonprofit landlords must meet rules to keep a property tax exemption. At least 50% of occupied units must be rented to households at or below 80% of AMI, and the rest at or below 120% of AMI. Starting July 1, 2023, total rent for any unit cannot exceed the housing authority’s rent‑reasonableness cap. The Office of Tax and Revenue verifies compliance each year, and an exemption starts on October 1 of the tax year it verifies (no exemptions before October 1, 2019).
Grants to hire returning citizens
The hiring effort is now a permanent program. The Office on Ex‑Offender Affairs can give grants to employers to hire returning citizens. This supports jobs for returning citizens and helps employers cover costs.
Help for foreign-trained clinicians to license
Starting October 1, 2025, the Department of Health runs a licensure pathways program for internationally trained health professionals. It offers application guidance, exam and training information, language support, and test prep resources.
Higher funded wages for direct-care workers
In Fiscal Year 2026, the District funds provider rates so direct care workers are paid at least the highest of three wage measures. Those are 117.6% of the living wage effective July 1, 2025, the current minimum wage, or the current living wage. Reimbursement must cover that highest rate.
More school and charter facility funding
For FY2026, the per‑pupil foundation is $15,070, and funding weights for grades and student needs are updated. Charter facility allowances are set at $3,850 (non‑residential) and $10,396 (residential) per pupil for FY2027–FY2028, and $4,219 and $11,393 for FY2029. Starting in FY2030, the charter facility allowance grows 3.1% each year.
New fund for District worker compensation
The law creates an Employees' Compensation Fund to pay compensation and related benefits for District employees. The Mayor administers the Fund. Money that is not spent does not expire and stays available under budget rules.
Residency sponsorship funds protected for educators
DC Public Schools may not reprogram funds that were approved for permanent residency sponsorship services for educators. Those dollars must stay for sponsorship services.
Retired police can work and keep benefits
Retired police officers may work full‑ or part‑time at the Department of Forensic Sciences and keep retirement benefits. The law also clarifies these annuitants are covered under the cited retirement provision.
Structured literacy training and grants
Teachers must complete OSSE‑approved structured literacy training or show competency within one year of hire or by grade deadlines: kindergarten by SY2026‑27; first grade by SY2027‑28; second grade by SY2028‑29; third grade by SY2029‑30. Some timelines depend on funding. OSSE may also fund early literacy programs and providers through grants when money is available.
At least $750K in FY26 community grants
The Deputy Mayor for Public Safety and Justice must award at least $750,000 in grants in FY2026. Eligible groups include nonprofit voluntary business associations, and salary and fringe can include special police officers where allowed.
Faster first payments on DHS grants
For DHS grants paid only with local funds and signed after October 1, 2026, DHS must send the grant agreement within 30 days after the fiscal year or service term starts. The first payment must be issued within 30 days of the fiscal year or term start, or within 30 days after DHS receives the signed agreement, whichever is later.
Fewer license late fees for businesses
The law raises the trigger for late fees and penalties on business licenses. Fees apply only when the past-due amount is more than $1,000. If it is $1,000 or less, no late fee or penalty applies under this rule. The Department can also waive late fees for license reinstatement by rule.
Rhode Island Avenue business grants
In FY2026, the city runs a Rhode Island Avenue Support Grant program. At least $350,000 total will be awarded. Eligible DC‑registered small businesses with under 30 full‑time employees and a long‑term lease can use grants for rent or tenant improvements.
Tech incubator and training grants
The Deputy Mayor awarded $500,000 in FY2024 and $1.5 million in FY2025 to Capital Factory for a technology incubator. Starting in FY2026, the Deputy Mayor may award grants to groups that support entrepreneurs or train people for tech jobs.
20-year property tax break at McMillan
Starting October 1, 2029, the owner of specified McMillan lots gets a 100% property tax exemption for 20 years. The owner must operate 449 units, set aside one‑third of operating rental units as affordable at an average of 80% AMI, and award at least 35% of construction dollars to certified business enterprises. The owner must report compliance by September 30 each year. If fewer than 449 units are operating, the exemption is reduced in proportion.
More support for school mental health
In FY2026, the District must award at least $120,000 per school‑based clinician, and at least $16.32 million total in grants. The Department must prioritize providers from SY2023–24 or SY2024–25 and cannot add certain limits like barring therapy or setting billing thresholds over $15,000. By October 15, 2025, the Department must submit a full plan to strengthen the school behavioral health program.
Stronger lead and home health protections
The Department of Health now regulates medical waste, some low‑level radioactive waste, and home hazards like indoor air and pests. The department must run a childhood lead‑poisoning prevention program. The Mayor can issue rules to help doctors treat children with lead poisoning. Lead and medical waste programs moved from DOEE to the Department of Health on July 29, 2021, and current rules stay in place until changed.
Targeted opioid outreach and lab funding
By October 31, 2025, DBH must award $800,000 for outreach in four areas, $200,000 near King Greenleaf Recreation Center, and $750,000 for outreach at four other sites. Each grantee must report by November 30, 2026, and DBH must post the reports within 30 days. In FY2026, $2.107 million from the Opioid Abatement Fund supports these grants, drug testing capacity at the Forensic Toxicology Lab and Data Fusion Center, and DBH implementation.
Up to $30M to preserve rentals
In FY2026, the Mayor uses $20 million from the Housing Production Trust Fund to preserve affordable rentals and may use up to $30 million total. Projects that already received Fund commitments get preference. If the full amount is not obligated by the end of the third quarter, the rest may be used for other allowed purposes.
Support for Chinatown and downtown retail
The city creates a Chinatown Long‑Term Lease Grant program. In FY2026, about $10.47 million supports retail and business attraction, including $5.14 million to the Washington DC Economic Partnership, $1.125 million for Gallery Place/Chinatown during arena redevelopment, and other listed amounts. In FY2027, $6.14 million goes to the Economic Partnership for retail and business attraction.
Immigrant legal aid repeal and data sharing
The law repeals a section of the Immigrant Legal Services Program Act of 2018. It also clarifies the Department of Corrections may share information required by federal law, including under 8 U.S.C. 1373. These changes may reduce access to legal help and allow more information sharing with federal agencies.
25% cut for TANF noncompliance
Beginning October 1, 2026, a TANF case found in noncompliance gets a 25% benefit cut. For example, $400 a month becomes $300. The cut applies after an official noncompliance finding under this law or its rules.
Cap on TANF hardship exemptions
Beginning October 1, 2026, no more than a monthly average of 25% of TANF assistance units can be exempt from reduced‑benefit rules. The Mayor may use the current or prior fiscal year to calculate the average.
Downtown BID assessments can rise 5%
The Downtown BID can raise annual assessments up to 5% over last year. For the 2026 tax year, it may split the total increase between the September 2025 and March 2026 bills. The combined rise cannot exceed 5%.
Electrification help now funding‑dependent
Home Electrification Program benefits are no longer guaranteed. The agency may provide help only if funding is available and at its discretion.
Rapid Re-Housing time limits and fewer services
The law makes you leave Rapid Re-Housing at the end of the program time limit the Mayor sets (at least 12 months). The Mayor can set rules to extend some cases, and the Director may grant extensions if funds are unavailable. If you got an exit notice before the Act, you leave at 24 months or on September 30, 2025, whichever is later. The continuation-of-services rule does not apply when you hit the time limit. Case management is no longer guaranteed; you can ask for it, but you are not entitled to it. Parts of these rules apply starting November 27, 2024.
6% sales tax on medical cannabis
Medical cannabis sales are taxed at 6% of gross receipts. In FY2026, the proceeds go to the Healthy DC and Health Care Expansion Fund up to the FY2026 certified amount from the approved FY2023 budget. Any amount above that certified level goes to the General Fund.
Higher fees for street dumpsters
Monthly permit fees for construction debris receptacles in public space increase. Month 1 costs $75; Month 2 $150; Months 3–4 $225 each; Month 5 is $300 and each month after adds $150 (for example, Month 6 is $450). Longer placements cost more.
New rules and fees for bingo
On‑premises retailers that want to run commercial bingo must get a new endorsement and a license. The endorsement costs $300 each year. Games face strict rules, including no bingo against a machine or from outside the licensed place. Violations can bring fines up to $50,000 and license suspension or revocation.
Stricter duties for restroom contractors
Contractors that run public restrooms for DPW must keep them maintained 24/7. They must report monthly on usage, vandalism, access, cleanliness, and user experience. They must place facilities where DPW directs.
Mayor gains leeway on Medicaid expansion
The law changes some Medical Assistance Expansion rules from “must” to “may,” and repeals one subsection. This gives the Mayor more choice over parts of the program that were mandatory. It also directs that recovered Medicaid money be sent to the Attorney General. These shifts can change how benefits are offered and managed.
Fingerprints and Rap Back fees
When a background check is required by law, MPD can take your fingerprints, send them to the FBI, and share results with authorized DC agencies. The FBI may keep your prints for ongoing checks (Rap Back). MPD may set an annual Rap Back subscription fee by rule, charged to the person or the agency. MPD can issue rules to run the program.
New pay rules for direct care workers
The law repeals a specific pay‑rate section for direct support professionals. For FY2026, providers may use a tiered pay schedule that considers experience and competency. Some workers may be paid less than the section 3 rate, but average pay for all direct care professionals must meet section 3(c).
New health rules for tattoo shops
The Department of Health now licenses and regulates body art shops. Tattoo shops must post pigment disclosures and keep supplier and ingredient records for 3 years. Non-disposable tools must be sterilized with a calibrated autoclave; DOH can require single-use sharps, pigments, gloves, and cleansers. Violations or unlicensed work can mean license loss, a civil fine up to $2,500, or a misdemeanor with up to $2,500 in fines and 3 months in jail.
Ongoing criminal‑history alerts for agencies
The District creates a Rap Back program run by MPD. Agencies can subscribe fingerprinted people and get FBI criminal‑history alerts about them. This gives agencies ongoing notifications, while subscribed people have their fingerprints retained and checked over time.
Energy funds and supplier surcharges
The law creates several energy and environment funds. A Municipal Aggregation Fund pays costs to form and run aggregation contracts. A Renewable Energy Development Fund and a Tree Fund hold program fees and penalties; any leftover money at year‑end moves to the General Fund. A new Mayor’s Energy Surcharge Fund, run by DOEE, is paid for by assessments on natural gas, electric, and heating‑oil suppliers; a Fiscal Agent deposits and spends the money for specified energy uses.
Limits for city green power purchases
The law limits the Mayor’s Energy Surcharge Fund to buying wind or solar power from the PJM region. It sets $70,101,974 for FY2026 and $80,601,974 for each of FY2027, FY2028, and FY2029. This money stays available and does not return to the General Fund. During FY2025 or FY2026, DOEE may extend an existing option period by one year under the Clean and Affordable Energy Act.
Sports fee now supports RFK projects
The ballpark fee is renamed a sports facilities fee, tied to paying annual bond debt service, and sent to the Ballpark Revenue Fund until those bonds are paid. After that, sports fee receipts go to the new RFK Campus Infrastructure Fund, which may secure bonds and keeps money available across fiscal years. Extra RFK Fund money is scheduled: FY2026–FY2027 first pay ballpark early redemption debt, then may go to the General Fund; FY2028–FY2029 go to the General Fund; FY2030+ go to the RFK Transportation Improvement Fund, capped at $20 million a year with any excess going to the General Fund. Excess distribution rules under the Ballpark Act are also narrowed to the first $32.92 million in FY2026.
Tax revenue rerouted starting Oct. 2025
Beginning October 1, 2025, a specific stream of tax revenue is credited to the named Account instead of the General Fund, except amounts the law keeps in the General Fund. This changes where that money is available for programs.
Hands-free only while driving
The law bans using or holding a phone or other handheld device while driving unless you use a hands‑free accessory. You may use a device only when safely stopped off the roadway. Emergency, traffic, and weather alerts are allowed.
Free grocery delivery memberships
In FY2025 and FY2026, up to 1,000 residents get a no‑cost grocery delivery service membership for two years. Seats are limited to 1,000 under this pilot.
Ombudsman contacts on DHS materials
DHS must show the Health Care and Public Benefits Ombudsman’s phone, email, and website. It must appear on DHS’s website, in benefit applications and materials, and at each service center.
FY2026 grant for furniture assistance
The Department of Human Services gives A Wider Circle a $250,000 grant in Fiscal Year 2026. The nonprofit uses it to provide furniture and home goods to low‑income individuals and families in the District.
Job and re-entry help for youth
In FY2026, DYRS runs one‑year pilot grants. One funds pre‑apprenticeship training for youth detained at New Beginnings. Another funds re‑entry aftercare and case management, including housing help, training, school reenrollment, and mentorship. Eligible nonprofits and schools can apply. Grantees must report results within 14 months.
Paid summer nurse aide training
OSSE funds a one-time $150,000 program by August 30, 2026 to train at least 25 DC high school students as certified nurse aides. Students are paid $17 per hour. After finishing course and clinical hours, students must take the certification exam within two months. OSSE will help certified students connect with hiring partners.
Pay stubs must list all pay sources
Starting January 1, 2026, employers must list all sources of pay on statements. That includes bonuses, sales commissions, amounts from service charges, and other sources. This improves pay transparency for workers.
Sales tax stays 6% until Oct 2026
A planned sales tax increase is delayed. The District sales tax remains 6.0% until October 1, 2026. This keeps everyday purchase costs lower until that date.
New vending managers; fewer on-site tickets
Sidewalk vending zones may be managed by a city employee or a private group under contract or MOU with the Mayor. DLCP site managers cannot issue vending notices of infraction. This reduces on‑the‑spot tickets from those employees, while management may shift to contracted groups.
ANC travel pay, e-signatures, oversight
ANC members can be reimbursed for taxi and rideshare trips. Authorized ANC officers can use electronic records and signatures. Banks that hold ANC accounts must send statements or give online access to the CFO on the bank’s normal monthly or quarterly schedule.
Annual survey of parks and courts
Each year the Department of General Services surveys the condition of spray parks, turf fields, playgrounds, and courts. The report lists each facility, is public, and is sent to the Council and City Administrator by March 1.
Arts and festival grants in 2025–2026
The arts agency must issue fixed grants. In FY2025: $4,000,000 to the National Theatre, $500,000 to the Howard Theatre, and $285,000 to the Lincoln Theatre. In FY2026: $500,000 to Woolly Mammoth. GALA gets $450,000 by December 31, 2025 plus up to $50,000 matched $1 for $1 with documentation. Events DC must also give at least $350,000 to a citywide history nonprofit and at least $250,000 to a Carnegie Library history nonprofit in FY2026. For cherry blossom groups, Events DC matches corporate donations at $2 per $1 raised by April 30, 2026, capped at $1,500,000 per recipient, and receives a $1,500,000 transfer to fund the program.
Bigger share for arts grants (40%)
An arts funding cap increases from 30% to 40% under a Commission on the Arts and Humanities rule. This lets a larger share go to eligible arts recipients.
Grants for culture and legal help
The Mayor can give grants to people and groups that run cultural affairs, community relations, and partnership programs. The Mayor also creates a grant program to fund legal services groups. Grants follow the Grant Administration Act, and the Mayor may set detailed rules.
Grants to preserve historic burial grounds
The Office of Planning runs a grant program for historic burial grounds created before January 1, 1955 that were primarily for African American interments. Only 501(c)(3) charities may receive grants. Work on private land needs the owner's written consent.
Lobbyist fees fund ongoing enforcement
Fees paid under the lobbying law go into the Lobbyist Fund. The Board uses this money only to run and enforce lobbying rules. Money does not revert at year end and stays available, subject to the budget.
Rock Creek Tennis transfer and upgrades
The Council accepts transfer of the Rock Creek Tennis Center area from the National Park Service to the District, with a plat filed. After the transfer, the Parks and Recreation Department starts a capital project to meet ATP and WTA event standards.
Rules for free Wi‑Fi kiosks
The District can license a provider to install and run interactive wayfinding kiosks in allowed public places. Kiosks offer free Wi‑Fi, maps, public information, and ads, and can connect to public‑safety systems. The District must get a percentage of ad revenue. The Mayor issues rules for kiosk design and placement.
$5.9M for stormwater cleanup (FY26)
In FY2026, $5,903,293 from the Enterprise Fund goes to DPW for stormwater work like street sweeping. The money is for FY2026 only.
DPW will deploy public restrooms
DPW starts a Public Restroom Facility Program using relocatable, ADA‑compliant units with running water. Contractors must provide 24/7 maintenance and monthly usage reports. The Director picks and may change locations, and placements depend on available funding.
More money back to 911 and 311
The law restores money to the 911 and 311 Assessments Fund. On October 1, 2025, $300,000 moves from the General Fund into this fund. It also reverses two earlier $150,000 transfers out. A budget table figure is updated to $862,074.
New Clean City Office and grants
DPW now has an Office of the Clean City led by a full‑time coordinator. The office does cleanliness checks, coordinates agencies, and can issue grants if funding exists. Grants should boost existing Clean Teams, expand their areas, and focus on major corridors. Grants cannot replace DPW staff work.
Cap on paid leave admin spending
In FY2029, $25,812,158 is set for Universal Paid Leave administrative costs. Starting in FY2030, at most 15% of estimated deposits can be used for administration. This helps keep more funds for benefits.
Medicaid provider fraud recovery fund
The law creates a Medicaid Provider Fraud Reimbursement Fund. Money recovered from provider fraud goes into the fund and reimburses Medicaid when payments were fraudulent or owed by another insurer. Any balance at year end goes to the city’s general fund.
New Long‑Term Care Coordinator
The law creates a full‑time Long‑Term Care Strategic Coordinator in the Deputy Mayor’s office. By January 1, 2026, the Coordinator runs Age‑Friendly DC efforts, tracks long‑term care services, plans workforce needs, and names agency contacts.
Opioid board and mental health timing
The Opioid Litigation Proceeds Commission now has 15 members, set terms, elected leadership, and can form expert subcommittees. It must work regularly with key Deputy Mayors and agency leaders. The Department of Behavioral Health can carry out section 5117a work in Fiscal Years 2025 and 2026.
Background checks for youth jobs
The Department of Employment Services can run criminal and driving‑record checks on employees and volunteers of host employers and grantees in Youth Employment Act programs. The checks follow the child‑protection background check law.
Extra FY2026 grants for DC schools
The law adds $1.2 million for St. Coletta Special Education PCS in FY2026. PCSB must send the money by November 1, 2025 and get spending reports each quarter. OSSE must give $500,000 to Live It Learn It by November 1, 2025 to fund hands-on learning microgrants. OSSE also adds $2.4 million in FY2026 to extend Community Schools grants for the FY2022 and FY2024 cohorts.
Grants to improve educator work environments
In School Year 2025–2026, $300,000 funds a competitive grant program for at least two community groups to help schools and child care sites build healthier workplaces for educators. OSSE must select grantees by November 26, 2025.
More child and youth providers covered
More groups now count as child or youth services providers, including District agencies and licensed or contracting private entities. Foster parents and grantees are usually excluded. Employees or volunteers in Youth Employment Act host sites are covered if they have direct or unsupervised access to youth.
New fund for veterans services
The law creates the Office of Veterans Affairs Fund and directs certain fees and revenues into it. The Fund pays for the Office’s work; any leftover at year‑end goes to the General Fund.
Restaurant industry report every two years
Starting June 1, 2027, the Chief Financial Officer publishes a report every two years on tipped restaurant wages, receipts, restaurant counts, and related data. Later reports must analyze how federal tax changes affect tipped workers’ DC taxes. By January 1, 2036, the CFO must report on the effect of the tipped wage reaching 100% of the regular minimum wage.
Study a dual-language middle school
By January 1, 2026, the Deputy Mayor for Education must finish a study on a grades 6–8 dual‑language program in Ward 6, 7, or 8. The study reviews sites, costs, staffing, transportation, feeder patterns, demand, and timelines for the top three options. The study does not change enrollment or funding by itself.
Economic partnership named lead contractor
The law names the Washington DC Economic Partnership as the main contractor for marketing, business retention, and attraction work for the Convention Center Authority.
Transfers boost District local budget FY26–FY29
The Chief Financial Officer moves listed fund balances and revenues into the local fund for FY2026 through FY2029. Money becomes available under the approved FY2026 Budget and Financial Plan. This increases resources for local services.
Refined areas for prosperity projects
The law narrows where Neighborhood Prosperity Initiative projects can qualify. Only mixed‑use or retail projects in certain low‑income areas, Retail Priority Areas, or DSLBD‑supported Main Streets that border a fund boundary now qualify.
Higher DMV and vehicle fees
Many driver and vehicle fees rise. Examples: a driver fee goes from $98 to $115; other references change from $338 to $350 and $26 to $30. Duplicate registration is $25 and replacement tags are $15. Recording or releasing a vehicle title lien now costs $15 per filing (up from $0.50). There is also a $40 Class V electric vehicle registration for the first two years.
New $1,000 District debt rule
The law sets a clear threshold. If you owe DC more than $1,000 in fines, penalties, or interest (not including DMV debts), you face the disqualifying rule in that code section.
New residential parking permit fees
You pay $55 a year for the first vehicle’s residential parking permit, $80 for the second, $115 for the third, and $175 for each vehicle after that. If you are 65 or older, the first‑vehicle fee is $35. Another referenced fee increases from $98 to $100.
Farmers market support funding reduced
A farmers market program figure changes from $250,000 to $140,000. That is a $110,000 reduction in the referenced amount.
New DFHV assessments on for-hire drivers
The Department of For‑Hire Vehicles now runs a special fund and can levy assessments on taxicab and other for‑hire operators to support it. Amounts are not listed, so actual costs depend on DFHV’s assessment decisions. Any money left at year‑end returns to the District’s General Fund.
Commission on Fathers, Men, Boys ended
The law repeals the statute that created the Commission on Fathers, Men, and Boys. The Commission no longer has legal authority to operate.
Some ex‑offender office rules repealed
Two subsections of the Ex‑Offender Affairs statute are repealed. Those removed rules no longer apply, which may narrow the office’s duties or tools.
New energy surcharges on gas, power, oil
Energy suppliers pay per‑unit assessments that can be passed on to customers. Rates in FY2026: $0.077132 per therm of natural gas, $0.004854 per kWh of electricity, and $0.059008 per gallon of heating oil. In FY2027 and later: $0.090112 per therm, $0.005544 per kWh, and $0.064586 per gallon. Your yearly cost equals the rate times your household use.
Business tax timing shifts to 2030
The start of a 7‑year combined reporting period moves to the first 7 tax years beginning after December 31, 2029. A cross‑reference also now includes tax year 2025. This delays when certain combined filing timing rules and deductions begin.
Lower cap, new zones for office tax aid
The law updates which commercial areas qualify for certain tax measures and changes the cap from up to $6.8 million to up to $5 million. It also updates a tax year reference from 2025 to 2026.
Appraisal Education Fund updates
Fees and civil penalties tied to appraisal education now go into a special fund run by the Mayor. Money does not expire at year end and remains available by appropriation.
ABCA now handles retailer licenses
The Alcoholic Beverage and Cannabis Administration now processes and issues retailer licenses under the Lottery and Gaming law. The Office of Lottery and Gaming must quickly tell ABCA when it cites or takes enforcement against a licensed place.
New rules and help for street vendors
Vendors must follow site plans with approved cart and table designs, and zone managers must hold a public market manager license. Vendors must give their business and, if different, home address to the licensing agency. The Mayor creates an amnesty application process and can give grants to help with licenses and equipment. If no vendor zone manager is hired in Columbia Heights–Mount Pleasant, a three‑member oversight committee runs the zone for two years.
New rules for bingo and skill games
Commercial bingo, authorized sports betting (as of May 3, 2019), and authorized games of skill (as of April 27, 2021) are exempt from a prior restriction. Retailers that offer games of skill must hold a retailer license and a game of skill endorsement. Only on‑premises alcohol retailers can get a commercial bingo license, and none can be issued before October 1, 2025. One lottery law subsection is repealed.
Vending law section repealed
One section of the Vending Regulation Act of 2009 is repealed. The practical effect depends on what that section previously required for vendors.
Changes to health fee funds and balances
Licensing fees, fines, and interest tied to pharmaceutical detailing go into a Board of Pharmacy Fund run by the Department of Health. Any money left in that Fund at year end moves to the General Fund. The law also sends year‑end balances from the Medical Examiner Pathology and Toxicology Fund to the General Fund and repeals the AED registration‑fee fund. These are accounting changes and do not change who can get care.
Criminal Code Reform Commission sunset
The Criminal Code Reform Commission ends on September 30, 2025. Its legal authority expires on that date unless the law changes.
Deletes sections from recent DC laws
The law deletes single sections from seven recent acts. These include pieces on the child behavioral health dashboard, human rights administration, carrier‑for‑hire oversight, mental health crisis support, certificate of need, farmers market support, and board of trustees training. The text does not restate those sections. Any service or rule changes depend on what those deleted parts did.
Leftover environmental funds move to General Fund
At year end, the Chief Financial Officer moves leftover money from several environmental funds to the District’s General Fund. This includes the Lead Service Line, Pesticide Registration, Product Stewardship, Soil Erosion, Solid Waste Diversion, and Underground Storage Tank funds. These funds no longer keep carryover balances. The law does not change program eligibility or fee levels in this text.
Limits on commission spending; travel reimbursed
Advisory Neighborhood Commissions and other commissions may not fund services that duplicate District services. A previously optional commission action becomes required. Commissions may reimburse travel by taxicab or rideshare for members and authorized payees.
New limits on justice and school records
Data sent by courts or federal agencies to the Criminal Justice Coordinating Council or the DC Sentencing Commission is now exempt from FOIA. Certain delinquency‑status data used in truancy pilots is also exempt from public records. Agencies may use Rap Back alerts only to decide eligibility for listed jobs or services and may not share the alerts further. The Pilot Truancy Reduction Temporary Amendment Act of 2025 is repealed on July 28, 2025.
New rules for city special funds
The law changes how many District special funds get and keep money. ABCA licensing fees go into a special fund that does not revert and pay for ABCA operations. Library and Anacostia cleanup accounts can keep money year to year, with added revenue like bag fees and special plates. Other funds must send leftover money to the General Fund at year end, including the Community Schools, DCPS Facility, DCHA rehab and maintenance, DOC reimbursement, and the Community Violence Reduction funds. The SHPDA Fund pays agency salaries first, with any remaining year-end money moving to the General Fund. A technical fund transfer change applies July 1, 2025, and the Procurement Fund pays OCP operating costs.
New rules for for-hire and parking
Vehicles offering for-hire trips that start or happen fully in DC can be impounded if not licensed. Registration with the Taxicab Commission is due by January 5, 2026, and operators must meet rules by January 1, 2026. Parking enforcement now also applies on public rights-of-way and District-managed private property. The Traffic Act covers driving that shows a “conscious disregard” for risk of harm. The PLAZA program deadlines all move one year later. One Taxicab Commission subsection is repealed.
Parks, housing, and redevelopment fund changes
The DHCD Unified Fund is set as a special fund, and any year‑end balance moves to the General Fund. The Parks and Recreation Fund collects fees for parks, concessions, services, and some developer payments; leftovers go to the General Fund at year end. Year‑end balances in the St. Elizabeths East and Walter Reed redevelopment funds also move to the General Fund. The OCTFME special account adds allowable revenue and sweeps at year end. The Combat Sports Commission Fund gets a shorter name and sweeps leftovers. The State Athletic Activities fund also sends year‑end balances to the General Fund.
Ranked-choice rules start after funding
Some ranked‑choice and open‑primary rules take effect only when their costs are in an approved budget and financial plan. The Chief Financial Officer certifies the date and notifies the Council’s Budget Director. The Budget Director publishes a notice in the District of Columbia Register.
Renewable energy standard extended one year
The Renewable Energy Portfolio Standard end date moves from September 30, 2028 to September 30, 2029. Covered entities must comply through the new date.
Resident Welfare Fund for commissaries
The District creates a Resident Welfare Fund run by the Department of Corrections. Money from jail commissary sales goes into the Fund. At year‑end close, any leftover balance moves to the District’s General Fund.
Transit and safety program fund changes
The DC Circulator Fund is repealed, and any money left on the section’s effective date moves to the General Fund. The Mayor now runs the Vision Zero Pedestrian and Bicycle Safety Fund; any year‑end balance is moved to the General Fund by the CFO. The Private Security Camera Incentive Fund also sends leftover year‑end money to the General Fund. These are funding and management changes; program rules are not changed here.
Fund for health benefit grievances
The city sets up a fund to pay for handling appeals of denied health benefits. Insurer assessments go into the fund. Any money left at year end moves to the General Fund.
Eminent domain for North Capitol site
The Mayor can use eminent domain to acquire Lot 48 in Square 3100 (about 1600 North Capitol St., NW) for revitalization or redevelopment. The acquisition must follow the District’s eminent domain procedures.
Lower threshold in campus misconduct reports
The law changes a number in a higher‑education sexual misconduct reporting rule from 104 to 100. This technical change adjusts which reports or institutions meet the rule.
New truancy pilot rules at schools
For SY2024–25, five high‑truancy secondary schools refer students ages 14–17 to DHS within two school days after 15 unexcused full‑day absences. DHS must report by March 31, 2025 and September 30, 2025. For SY2025–26, at least 10 schools (including one middle school) must refer ages 14–17 after 15 unexcused days, and ages 10–13 after 10 days. If a parent does not respond in 10 business days or declines services for ages 10–13, DHS must refer to CFSA. DHS reports by March 31, 2026 and September 30, 2026.
Student delinquency data sharing for pilots
When DHS asks, MPD must share student delinquency status for schools in the truancy pilots so DHS can report results. MPD and DHS may set an agreement to protect the data. The shared information is exempt from public records requests as the statute provides.
Unused apprenticeship fines move to General Fund
Any apprenticeship fine that is unspent at the end of a fiscal year moves to the General Fund. The Chief Financial Officer sets the transfer amount at year‑end close.
Narrow DC tax rule repealed
A specific DC tax code subsection is repealed. The effect depends on what that provision previously allowed or limited.
Business and city fees now swept yearly
The DLCP runs the Basic Business License and Corporate Recordation funds; any year‑end balances move to the General Fund. The Recorder of Deeds Automation Fund receives specified charges and also sweeps its year‑end balance. The Vending Regulation and Procurement Practices funds send leftover money to the General Fund. The Subrogation Fund now includes recoveries from claims by the Chief Risk Officer and sweeps leftovers. The Benchmarking Enforcement and Wage Theft Prevention funds also sweep at year end. The CFO sets the amounts during the fiscal year‑end close.
Medical cannabis revenue shifts to General Fund
Money from fines under medical cannabis rules now goes to the District’s General Fund. The law also repeals two sections of earlier cannabis law and adds the same deposit rule in the 2022 act. Any year‑end balance in the Medical Cannabis Administration Fund also moves to the General Fund. These steps change where revenue sits; patient eligibility is not changed in this text.
Transportation and inspection funds updated
The law creates and updates transportation funds. The Transportation Initiatives Fund, run by DDOT, can pay for goods, services, property, capital work, other listed uses, and payments to the Highway Trust Fund; year‑end balances move to the General Fund. The Motor Vehicle Inspection Fund, run by the Mayor, uses updated “Inspection” wording and also sends any year‑end balance to the General Fund.
Hotel surtax dollars shift in FY26–27
Starting October 1, 2025, part of the 1.0% hotel surtax goes to the Economic Development Special Account: $10,466,000 in FY2026 and $6,140,000 in FY2027. Other receipts go to local funds.
Sponsors & Cosponsors
Sponsor
Phil Mendelson
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 7/28/2025
Final Reading
Yes: 10 • No: 2
House vote • 7/28/2025
Other
Yes: 12 • No: 0
House vote • 7/28/2025
Other
Yes: 12 • No: 0
House vote • 7/28/2025
Other
Yes: 9 • No: 0 • Other: 3
House vote • 7/28/2025
Other
Yes: 10 • No: 2
House vote • 7/28/2025
Other
Yes: 12 • No: 0
House vote • 7/28/2025
Other
Yes: 12 • No: 0
House vote • 7/28/2025
Other
Yes: 12 • No: 0
House vote • 7/28/2025
Other
Yes: 7 • No: 4 • Other: 1
House vote • 7/28/2025
Other
Yes: 7 • No: 5
House vote • 7/28/2025
Other
Yes: 12 • No: 0
House vote • 7/28/2025
Other
Yes: 5 • No: 7
House vote • 7/14/2025
Other
Yes: 7 • No: 5
House vote • 7/14/2025
First Reading, CC
Yes: 12 • No: 0
House vote • 7/14/2025
Other
Yes: 4 • No: 8
Actions Timeline
Committee Report Filed by the Committee of the Whole
1/28/2026HouseLaw L26-0055, Effective from Dec 06, 2025 Published in DC Register Vol 73 and Page 000001
1/2/2026HouseAct A26-0148 Published in DC Register Vol 72 and Page 009825
9/12/2025HouseTransmitted to Congress
9/10/2025HouseReturned from Mayor
9/5/2025HouseSigned by the Mayor and Enacted with Act Number A26-0148
9/4/2025HouseTransmitted to Mayor, Response Due on Sep 09, 2025
8/25/2025HouseLegislative Meeting
7/28/2025HouseLegislative Meeting
7/14/2025HouseCommittee of the Whole
7/14/2025HouseCommittee Mark-up of B26-0265 by the Committee of the Whole
7/14/2025HouseNotice of Mark-up filed in the Office of Secretary
7/8/2025HousePublic Hearing on B26-0265 View Public Hearing Record
6/18/2025HouseNotice of Intent to Act on B26-0265 Published in the District of Columbia Register
6/6/2025HouseReferred to Committee of the Whole
6/3/2025HouseB26-0265 Introduced by Chairman Mendelson at Office of the Secretary
5/27/2025HouseNotice of Public Hearing Published in the District of Columbia Register
5/23/2025House
Bill Text
Amendment
7/28/2025
Enrollment
7/28/2025
Amendment
7/14/2025
Engrossment
7/14/2025
Introduced
5/27/2025
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PR26-0615 — Local Rent Supplement Program Contract No. 2026-LRSP-02A Approval Resolution of 2026
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