District of ColumbiaB26-0340Council Period 26 (2025-2026)HouseWALLET

Fiscal Year 2026 Budget Support Emergency Act of 2025

Sponsored By: Phil Mendelson (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

145 provisions identified: 57 benefits, 32 costs, 56 mixed.

Stipends for WMATA board appointees

A DC-appointed principal WMATA Board member who is not a District employee gets $20,000 per 12-month period, paid quarterly. An alternate gets $250 for each day they serve in place of a principal to make quorum.

Child support not counted for aid

Starting October 1, 2025, child support you receive does not count as income for public assistance. Up to the first $200 per month is also excluded from certain rules. This can help you qualify for or receive higher benefits.

Home Purchase Assistance Fund returns

Beginning September 1, 2025, the city runs a Home Purchase Assistance Fund again. It provides loans, down-payment help, and interim financing. Help is for low- and moderate-income buyers and eligible DC government workers. You must live in the home as your main home. You can combine this with other homebuyer programs.

Higher and clearer pay for tipped workers

The tipped minimum wage rises as a share of the regular minimum wage: 56% on July 1, 2026; 60% on July 1, 2028; 65% on July 1, 2030; 70% on July 1, 2032; and 75% on July 1, 2034. The tipped rate applies only if you actually receive tips equal to the gap to the regular minimum wage. Starting January 1, 2026, employers must list pay sources like bonuses, commissions, and service‑charge shares. Starting June 1, 2027, the CFO publishes restaurant and tipped‑worker trends every two years.

Paid summer nurse aide training for students

By August 30, 2026, the city provides $150,000 to train at least 25 DC high school students as certified nurse aides. Students are paid $17 per hour. The program must get students to take the certification exam within two months and connect certified students to hiring partners.

Big grants for business attraction

For FY2026 the law funds: $2,451,000 for set grants; $5,140,000 to the DC Economic Partnership; $750,000 for lead generation; $1,125,000 to help Gallery Place/Chinatown businesses during arena work; $750,000 for street activations; and $250,000 for Chinatown cultural identity. In FY2027, $6,140,000 goes to the Partnership. The Partnership is named the primary contractor to market and attract businesses.

Higher caps for Chinatown and arts

The Chinatown Long-Term Lease Grant cap rises from $125,000 to $250,000. The arts Large Capital Grants allocation cap rises from up to 30% to up to 40%. Eligible projects can receive larger support.

Alliance coverage limits and enrollment freezes

Starting October 1, 2025, the Mayor can limit what the DC HealthCare Alliance covers. People 21 or older can be limited to selected services. Some services for people under 21 can be excluded. The Mayor can cap how many people a contract serves and must give a 90‑day renewal grace period with retroactive coverage if eligible. New enrollments are blocked for people 26+ on October 1, 2025, and for people 21+ after October 1, 2026. People who turn 21 during set periods are removed when they reach age 21.

Tighter income limits for Alliance

The DC HealthCare Alliance now uses age‑based income caps. For age 21+ enrolled by September 30, 2025, the limit is 210% of FPL. For new 21+ enrollments from October 1, 2025 to September 30, 2026, the limit is 133% of FPL, and for October 1, 2026 to September 30, 2027 it is 19% of FPL. Ages 19–20 have a 216% FPL limit; ages 18 and under have a 319% FPL limit. People 21+ also must not be eligible for Medicare, CHIP, or Medicaid, with limited emergency exceptions.

Stricter health rules for tattoo shops

Body art shops must follow new Department of Health rules. You must use regularly calibrated autoclaves and single‑use sharps, pigments, gloves, and cleaners as DOH requires. You must post a notice that the FDA has not approved tattoo pigments and keep three years of pigment supplier and component records on site; give them to customers on request. DOH now licenses shops, sets sanitation standards, and sets fees, replacing the prior board. Violations can suspend or revoke your license and bring fines up to $2,500 per violation; operating without a license is a misdemeanor with up to a $2,500 fine and up to 3 months in jail.

Business program cap cut to $5M

The law lowers the program’s annual cap from up to $6.8 million to up to $5 million. That reduces available funds by $1.8 million. The program now has less money to award.

Farmers market cap cut to $140K

The farmers market program cap drops from $250,000 to $140,000. That is a $110,000 reduction. This lowers the top amount a vendor or farmer can receive under the program.

Tougher rules for bingo operators

To run commercial bingo under the cited rule, you must hold a retailer license and a game‑of‑skill machine endorsement. The CFO must set rules on devices, prizes, premises, and frequency. Machines that let people play against a machine or from outside the licensed location are banned. Violations can bring fines up to $50,000 and license suspension or revocation.

TANF reduced, with some exemptions

Starting October 1, 2026, TANF has lower payments for many long‑term cases and new penalties. If your unit reached 60 months, your District‑funded TANF is 70% of the FY2026 amount in FY2027, 50% in FY2028, and 25% in FY2029. From FY2030 on, it stays at the FY2029 level. If you are found noncompliant, your monthly TANF is cut by 25%. TANF amounts are not adjusted for inflation in FY2027–FY2030. The Mayor can exempt up to a monthly average of 25% of assistance units from these reductions starting October 1, 2026.

Big property tax breaks with strict conditions

McMillan: Starting October 1, 2029, a 100% property tax exemption lasts 20 years if 449 units operate, one-third of rental units average 80% AMI, 35% of construction dollars go to CBEs, and annual reporting is filed. If fewer units operate, the exemption is reduced in the same proportion. Parkside: Starting October 1, 2029, each of two lots can get up to $300,000 per year for 30 years if the lot has a final certificate of occupancy by September 30, 2029. Chinatown: For abatements after October 1, 2025, the owner must keep a cultural space, open an Asian market with local consultation, and donate at least $300,000 in the first abatement year.

Grants for legal help and culture

The Mayor runs a grant program to fund legal services for residents. The Mayor can also grant money to people and groups that support cultural affairs and community partnerships. Grants follow the city’s Grant Administration Act rules.

No more biennial vehicle inspections

Effective September 1, 2025, the law removes the biennial motor vehicle inspection requirement. It creates a Motor Vehicle Inspection Fund under the Mayor. Any money left in the fund at year end goes to the General Fund.

Interim Disability Assistance Fund created

Starting September 1, 2025, the city creates an Interim Disability Assistance Fund. Money in the Fund can only pay for the Interim Disability Assistance program. Unspent money stays available with budget approval and does not revert at year end.

More counselors in schools, FY2026 grants

In Fiscal Year 2026, the city funds school-based behavioral health clinicians. Grants are at least $120,000 per clinician, for at least $16.32 million total. The Department must send a plan to the Mayor and Council by October 15, 2025.

Postpartum and home visiting start when funded

As of October 1, 2025, the city revives postpartum coverage expansion and home visiting reimbursement changes. They apply only when the Chief Financial Officer certifies their costs are in an approved budget. The Budget Director will publish a notice, but the publication date does not change when they apply.

State basic health program starts

The Health Benefit Exchange runs a basic health program under federal law. If you qualify, you can get lower-cost, subsidized coverage through the Exchange.

FY2026 funds to preserve rentals and basics

In FY2026, $20 million from the Housing Production Trust Fund helps preserve affordable rentals, with up to $30 million total. If funds are not obligated by the end of the third quarter, the balance can be used for other allowed purposes. The city also grants $250,000 to A Wider Circle to provide furniture and home goods to low-income households.

Homebuyer assistance rules add access and transparency

DHCD must publish a dashboard for the Home Purchase Assistance Fund with funding, rules, and processing times. If you are required to get housing counseling, you have at least two years after counseling to receive help. The Mayor must give priority to low‑income, elderly, displaced, and disabled DC residents and distribute funds on a rolling basis. The Mayor cannot use loan‑to‑value ratio or your first mortgage amount to decide assistance. If funds run out, your eligibility notice must last at least through the next fiscal year.

Lower taxes for community land trust homes

If a community land trust owns the land, the land’s assessed value equals average yearly ground rent divided by 0.10, capped at fair market value. If you live on a CLT land lease, you count as the owner for the homestead deduction. The law forgives and refunds transfer and recordation taxes paid since October 1, 2018 on CLT transfers. It also refunds real property taxes paid on CLT-owned property from October 1, 2018 through September 30, 2025. Refunds go to whoever paid.

New fund for targeted homeowner grants

Starting September 1, 2025, the city creates a Targeted Homeowner Grant Fund. It pays homeowner grants and can use up to 5% for administration. Money left at the end of the year moves to the General Fund.

Employees’ Compensation Fund created and protected

Starting September 1, 2025, the city runs an Employees’ Compensation Fund to pay compensation and related costs. Money in the Fund does not revert at year end. With budget approval, funds can stay available beyond one fiscal year.

Help licensing international health professionals

Starting October 1, 2025, the Health Department runs a program to help internationally trained health workers get DC licenses. It offers application help, exam and training information, language support, and exam prep resources.

Jobs program for returning citizens made ongoing

The Office on Ex‑Offender Affairs now runs an ongoing program that gives grants to employers to hire returning citizens. This replaces a pilot with a permanent program. The law does not set funding amounts in this text.

More pay support for early educators

The Early Childhood Educator Pay Equity Fund gets $70 million in FY2025 and $72.1 million in FY2026. Child development sites that take this money must pay set minimum salaries to assistant and lead teachers from October 1, 2024 to December 31, 2024, and again from January 1, 2025 to September 30, 2026. The agency will issue guidance to match pay tiers with credentials.

One-time funds to raise charter teacher pay

OSSE pays $30,785,832 directly to public charter LEAs to raise educator compensation in School Year 2025–2026. LEA leaders must promise the money is used only for educator pay and that increases are paid during that school year.

Local tax hike delayed to 2026

The local tax rate stays at 6.0% until October 1, 2026. The planned higher rate now begins on October 1, 2026. Rules that were set for tax year 2025 now apply in tax year 2026.

Faster DHS grant payments

For DHS local grants signed after October 1, 2026, DHS must send the grant agreement within 30 days of the fiscal year or term start. DHS must make the first payment no later than 30 days after the year or term starts, or 30 days after it gets the signed agreement, whichever is later. This helps grantees get cash faster.

Grants for tech startups and training

Capital Factory receives $500,000 in FY2024 and $1,500,000 in FY2025 for a technology incubator and related work. Starting in FY2026, the Deputy Mayor may award grants to groups that help entrepreneurs, early-stage tech companies, or train District residents in tech.

Rhode Island Ave business grants 2026

In FY2026, the Deputy Mayor runs a Rhode Island Avenue Support Grant program. At least $350,000 in grants must be awarded. To qualify, a business must be registered in D.C., be in good standing with DLCP, OTR, DES, and the IRS, and have fewer than 30 full-time employees. Grants can pay rent and tenant improvements.

Cleaner streets and public restrooms

DPW starts a Public Restroom Facility Program with ADA-accessible, relocatable restrooms and 24-hour maintenance and monthly reporting. DPW creates an Office of the Clean City to coordinate cleanliness, rodent control, and public education. In FY2026, $5,903,293 shifts to DPW for stormwater work, including street sweeping.

Extra FY25 revenue funds key help

If the CFO certifies by November 15, 2025 that FY25 revenues beat estimates, the city spends extra FY25 money in FY26. Examples: $5.5 million for childcare subsidies, $1.5 million for early educator pay equity, and $10 million for housing preservation. It adds $2,950,715 for Emergency Rental Assistance and $1 million for charter school lead‑pipe testing. It adds $500,000 each year in FY26–FY29 to raise the Medicaid personal needs allowance. It also sets aside $21,538,938 for the DC Healthcare Alliance program to delay an effective date to October 1, 2026. These allocations happen only after the CFO certification and set‑aside.

Background checks for youth program adults

The Department of Employment Services can run criminal and driving‑record checks on employees and volunteers who work with Youth Employment Act programs. Checks follow the 2004 child‑protection law. This improves vetting of adults who work with youth.

Tax relief for Prince Hall nonprofit

Property owned by the named Prince Hall foundation is tax‑exempt while used for its mission and not used exclusively for commercial purposes. In FY2025, unpaid Recorder of Deeds taxes are forgiven. In FY2026, unpaid liabilities and real property tax payments for 2022–2025 are forgiven and refunded, up to $1,284,271 total.

Ad kiosks and RFK project fund

The Mayor may license interactive kiosks in public areas that show paid ads. The District gets a share of ad revenue. The law also creates the RFK Campus Infrastructure Fund. After the listed bonds are fully repaid, the sports facility fee revenue goes into that fund.

Child wealth accounts repealed

The law repeals the Child Wealth Building Act of 2021. Any programs or supports created by that law end. Families no longer get benefits tied to that statute.

Cuts to senior and SNAP food help

The law repeals the No Senior Hungry omnibus amendment. It also repeals a subsection of the Food Stamp Expansion Act. Seniors and SNAP households who relied on those rules may lose help. No replacement benefits or phase‑out details are listed.

Co-op tax help and bedbug rules repealed

The law repeals tax assistance for limited equity cooperatives. It also repeals the Bedbug Control Act of 2022. Co-op resident-owners and renters lose those legal supports and protections.

Downtown BID charges can rise 5%

The standard annual BID assessment increase is now 5%, up from 3%. For tax year 2026, the Downtown BID may raise total assessments by up to 5% over the prior year. The increase can be split between the September 2025 and March 2026 bills, but the combined total cannot exceed 5%.

Farmers market support section repealed

The law repeals Section 5 of the Farmers Market Support Amendment Act of 2025. The repeal removes rules added by that section and likely reduces support for small farmers and market vendors.

Higher fees for dumpsters and licenses

Dumpster permit fees for public space rise with time on site: Month 1 is $75; Month 2 is $150; Months 3–4 are $225; Month 5 is $300, then add $150 per extra month. The annual licensing fee under Section 25-508 increases from $200 to $500.

1% vendor tax on hotel stays

Lodging vendors pay a 1.0% tax on gross receipts from transient stays. This applies to transactions from April 1, 2023 through September 30, 2027. Report and pay 1% on those receipts.

7.5% tax on commercial bingo

If you run commercial bingo, you pay a 7.5% tax on gross receipts from sales or charges to play. Multiply your gross receipts by 7.5% to get the tax.

Energy program help depends on funding

Clean and Affordable Energy Act services now apply only if money is available. Agencies provide help subject to funding. Assistance may be reduced or delayed when funds run short.

New energy surcharge on utilities

The law sets small per‑unit energy fees to fund city power purchases. For FY2026, deliveries are charged $0.077132 per therm of natural gas, $0.004854 per kWh of electricity, and $0.059008 per gallon of heating oil. Money can only buy wind or solar power for the District, with yearly spending capped at $70.1 million in FY2026 and $80.6 million in FY2027–FY2029. It also sets minimum funding for efficiency contracts ($19.8 million in FY2026; $10 million each year after). The law also adds government owners to who counts as a covered power‑generation owner.

New driving rules and fees

Vehicle registration fees are set by weight. Examples: up to 3,499 lbs is $70; 3,500–4,999 lbs is $175; 5,000–5,999 lbs is $300; 6,000+ lbs is $550 plus $75 per extra 1,000 lbs over 10,000. New electric cars pay $40 for the first two years if they qualify. You may not hold or use a phone while driving unless it is truly hands‑free, with narrow exceptions. Parking/tag enforcement now also applies on public rights‑of‑way and on District‑managed private property.

Rapid Re-Housing: stricter limits and exits

The Mayor sets Rapid Re-Housing time limits by rule, but not shorter than 12 months. Leaving because you hit the time limit is not covered by continuation-of-services rules. If you got an exit notice before this law, you must leave at 24 months or on September 30, 2025, whichever is later. Case management is not guaranteed; you can ask for it. The Director decides whether to consider extensions and can deny based on funding (effective November 27, 2024). The Mayor may grant extensions by rule, but you must exit at the end of any extension.

Direct care pay rules change in FY2026

For Fiscal Year 2026, reimbursement rates must support paying direct care workers at least the highest of: 117.6% of the July 1, 2025 living wage, the current minimum wage, or the current living wage. During FY2026, employers may use tiered pay that varies by skill and experience if the provider‑wide average meets the required wage. This can raise pay overall while some workers may earn less than the provider average.

Procurement alignment law is repealed

The 2022 law that aligned procurement agencies is repealed. District agencies and vendors now operate without those alignment rules. The excerpt does not include transition details.

RFK funds focused on bonds and transfers

The RFK Campus Infrastructure Fund pays bond principal, interest, issuance, credit support, defeasance, and reserves. Extra money in FY2026–FY2027 first pays ballpark early‑redemption debt, then goes to the General Fund. In FY2028–FY2029, extra money goes to the General Fund. From FY2030 on, extra money goes to the RFK Transportation Improvement Fund, up to $20,000,000 a year; any extra goes to the General Fund. The CFO decides what counts as excess.

Rap Back checks and annual fee

MPD runs a District Rap Back program with the FBI to notify agencies about new criminal history events for subscribed people. Agencies can request subscriptions, and MPD or an approved group will take fingerprints and send them to the FBI. MPD can set a yearly subscription fee, charged to the person or the agency.

Health department takes over lead safety

The Department of Health now runs childhood lead‑poisoning prevention and medical‑waste programs moved from DOEE. It also regulates medical waste, low‑level radioactive waste, and certain home environmental hazards like indoor air and pests. Existing rules and contracts continue until changed. The law also fixes a lead‑dust threshold unit to 0.7 mg per square centimeter (effective March 16, 2021).

New health funds to manage recoveries and grievances

Beginning September 1, 2025, the city creates three health funds. A Medicaid Provider Fraud Reimbursement Fund holds recoveries and pays back Medicaid when fraud or another insurer should have paid. An Adverse Health Benefit Decision Grievance Fund pays to run the grievance process using assessments. A Board of Pharmacy Fund holds fees and fines tied to pharmaceutical detailing for Board administration. Year-end balances move to the General Fund.

Construction code approval subsection repealed

A subsection of the Construction Codes Approval and Amendments Act is repealed. Builders and property owners may see changes to approval procedures. No transition details are provided.

New school funding rates and facility payments

For FY2026, the base per‑student funding is $15,070, with updated grade and program weightings. Charter school facility payments are $3,850 per pupil (non‑residential) and $10,396 (residential) for FY2027–FY2028, and $4,219 and $11,393 for FY2029. Starting FY2030, facility payments rise 3.1% each year. The local share facility percentage used in the formula drops from 35% to 30%.

Reading push: teacher training and program aid

Teachers must complete OSSE‑approved structured literacy training or show competency. Deadlines: Kindergarten by the 2026–2027 school year; Grade 1 by 2027–2028; Grade 2 by 2028–2029; Grade 3 by 2029–2030. The State Education Office can fund early literacy programs and providers if money is available.

CFO must certify and shift funds

By November 15, 2025, the CFO must certify any excess FY25 local revenue, state the dollar amount, and confirm money is set aside for listed allocations. The CFO also must move certified balances and revenues from named special‑purpose and dedicated tax accounts into the local fund in FY2026–FY2029, as set in the approved FY2026 plan.

Free grocery delivery membership pilot

In Fiscal Years 2025 and 2026, up to 1,000 eligible residents get a free grocery delivery membership for two years. If you are selected, the membership costs you nothing.

Easier rules for solar, storage, and EV charging

Buildings used for solar power, energy storage, Energy Star‑compliant solar management, or EV charging are excluded from Section 47‑1005. Solar management work must meet Energy Star guidance. This reduces some regulatory hurdles for these systems.

Library fund pays temp staff and carries over

The library Fund can pay temporary and when‑actually‑employed staff when their work is meant to bring in revenue. Unspent library money does not revert at year‑end and stays available if the budget allows it.

Youth re-entry and training grants in FY2026

In FY2026, DYRS funds a one‑year pilot for pre‑apprenticeship training for youth at New Beginnings, including paid wages where applicable and supportive services. DYRS also funds a one‑year pilot for youth re‑entry services such as housing help, job training, school re‑enrollment, and mentorship. Grantees must report participant numbers and outcomes within 14 months. DYRS must report certain law‑enforcement outcomes, following juvenile confidentiality rules.

More real estate projects qualify for help

The Neighborhood Prosperity Initiative now covers mixed‑use or retail projects in low‑income communities, Retail Priority Areas, and Main Street corridors that touch a program boundary. For certain Chinatown lots, the law clarifies that “repositioning” means big construction or conversion of at least 50,000 square feet, and reviewers can use prior occupancy certificates or affidavits.

Lower late fees for licenses

The Director may waive late fees and penalties for reinstating a lapsed business license. The late-fee threshold rises from over $100 to over $1,000, so fewer small balances trigger a fee.

More areas get vacancy relief

Eligible areas for commercial vacancy relief expand. Central Washington and Near Northwest plus 1,750 feet are included, and the Mayor can add other high-vacancy areas.

More flexible Great Streets payments

Great Streets and retail grants can be paid in one or several payments. This helps small businesses manage cash flow.

New support for sidewalk vendors

The Mayor can contract private groups to manage vending zones. Zone managers must have a site plan and a public market manager license. The Mayor sets vending amnesty application rules, and registered vendors get electronic notices about amnesty. Grants can help vendors get licenses and buy carts, trucks, or supplies.

Vending site managers can’t issue tickets

Department site managers for vending zones are not allowed to issue infraction notices. This limits that enforcement action against vendors.

Grants to preserve historic burial sites

The Office of Planning runs a grant program for historic burial grounds created before January 1, 1955. Only qualified 501(c)(3) charities can apply. Work on private property needs the owner’s written consent.

One-year extension for renewable energy goal

The deadline in the Renewable Portfolio Standard shifts from September 30, 2028, to September 30, 2029. Affected companies get one extra year to meet the requirement.

Targeted arts and festival grants

The law directs specific arts funding. FY2025: $4,000,000 to the National Theatre, $500,000 to the Howard Theatre, and $285,000 to the Lincoln Theatre. FY2026: $500,000 to Woolly Mammoth and $450,000 to GALA by December 31, 2025, plus up to $50,000 in 1‑for‑1 matching with a notarized donor list. Events DC also gives at least $350,000 to a citywide DC‑history nonprofit and at least $250,000 to a Carnegie Library history nonprofit in FY2026. The Deputy Mayor may grant funds to redevelop and operate the African American Civil War Museum.

Updates to Asian and Pacific Islander and Reentry offices

The law shortens wording about the Office on Asian and Pacific Islander Affairs. It also removes a phrase that tied the Office on Ex‑Offender Affairs to a specific oversight cluster. These are organizational clarifications only.

Yearly check of parks and fields

The city must inspect spray parks, turf fields, playgrounds, and courts every year. Results must show each site’s condition, be public, and be sent by March 1 to the Council and city leaders. This improves maintenance planning and safety.

Limits on agency use of criminal-history alerts

Agencies may use Rap Back notifications only to decide eligibility for caring for kids, people with disabilities, or the elderly, for security roles, or for licensure, jobs, or volunteering. Agencies may not share these alerts beyond those uses.

Money returned to 911 and 311

$300,000 moves from the General Fund back to the 911 and 311 Assessments Fund on October 1, 2025. This reverses two earlier $150,000 transfers.

Behavioral Health authority through Fiscal Year 2026

The Department of Behavioral Health may keep using its Section 5117a authority in FY2025 and FY2026. This extends the implementation period by one year.

FY2026 opioid outreach and testing funds

By October 31, 2025, DBH awards outreach grants: $800,000 from the Opioid Abatement Fund for four locations, $200,000 for the King Greenleaf area, and a $750,000 grant for four more locations. Grantees must report results by November 30, 2026; DBH posts reports within 30 days. For FY2026, the Opioid Abatement Fund provides $2,107,000 total: $800,000 for outreach grants, $400,000 for illicit drug testing and new methods, and $907,000 to DBH to implement section 5117a.

New rules for opioid settlement commission

The Opioid Litigation Proceeds Commission now has 15 members with set terms and required expertise. It must work with key agencies and create expert subcommittees. These changes shape how opioid funds are planned and overseen.

Rules to support care for lead-poisoned kids

The Mayor can issue rules to support providers who treat lead poisoning in children. The goal is better care for affected kids. This does not give direct cash to families.

Lower reporting threshold for college misconduct

The higher‑education sexual misconduct reporting law lowers a number in its rule from 104 to 100. This change may bring more institutions or situations under the reporting requirement.

More youth program workers now covered

Employees and volunteers of host employers or grantees in Youth Employment Act programs who work directly with youth are now covered providers. Child‑protection rules apply to them. Foster parents or some grantees may be excluded where the law says so.

Study new dual-language middle school options

By January 1, 2026, the Deputy Mayor for Education must finish a study on creating a dual‑language program or middle school in Ward 6, 7, or 8. The study must review sites, costs, staffing, transportation, enrollment effects, demand in Wards 7 and 8, and timelines for top options.

Targeted school grants in FY2026

In FY2026, OSSE gives an extra year of Community Schools grants to FY2022 and FY2024 cohorts, totaling $2.4 million. OSSE must issue a $500,000 grant to Live It Learn It by November 1, 2025 to support experiential learning at high‑need schools. The Public Charter School Board must transfer $1.2 million to St. Coletta by November 1, 2025, with quarterly spending reports. OSSE also awards $300,000 in SY2025–2026 to at least two groups to improve educator work environments.

Temporary committee for vending zone

If no vending zone manager is hired, a small unpaid oversight committee helps plan and oversee the Columbia Heights–Mount Pleasant vending zone. It provides monthly updates and supports outreach. This committee ends two years after July 28, 2025.

Higher fees for drivers and titles

Recording or releasing a vehicle title lien costs $15, up from $0.50. Several traffic fees and fines rise, for example $98 to $115, $26 to $30, and $338 to $350. One threshold increases from $5 to $250.

Stricter Clean Hands debt rule

Beginning September 1, 2025, you fail Clean Hands if you owe the District more than $1,000 in fines, penalties, or interest. Debts owed to the DMV do not count toward the $1,000. You must resolve the debt to qualify for licenses or approvals.

New fees for building conversions to housing

Beginning July 28, 2025, conversion projects that change use to Residential Group R‑2 pay two fees. You pay $0.03 per cubic foot of construction and $0.002 per square foot for a green building fee.

Set parking permit fees by vehicle

Parking permit stickers now cost set amounts each year. First vehicle is $55, or $35 if you are 65 or older. Second is $80. Third is $115. Fourth and later vehicles are $175 each.

6% tax on medical cannabis

Medical cannabis sales are taxed at 6% of the purchase amount. In FY2026, proceeds first go to the Healthy DC and Health Care Expansion Fund up to a certified cap, and any extra goes to the General Fund.

New assessments for taxi and for-hire companies

Beginning September 1, 2025, the city runs a Public Vehicles‑for‑Hire Consumer Service Fund. The for‑hire vehicles agency can charge assessments to taxi and for‑hire operators to pay for the Fund’s uses. Any leftover money at year‑end moves to the General Fund.

New rules for ride-hail and taxis

If you drive for hire in D.C., your vehicle must be licensed or tied to a business with operating authority. Officials can enforce these rules and may impound unlicensed vehicles. Operators must follow the new rules beginning January 1, 2026. Carriers must register by January 5, 2026.

Commission on Fathers, Men, and Boys ended

The law repeals the Commission on Fathers, Men, and Boys. The Commission’s legal authority ends. The excerpt does not describe replacement services.

Criminal Code Reform Commission ends Sept 2025

The Criminal Code Reform Commission dissolves on September 30, 2025. A related personnel‑law subsection is also repealed effective that date.

Immigrant legal aid cut; more data sharing

A section of the Immigrant Legal Services Program Act is repealed. The law also allows agencies to share information required by federal law, including 8 U.S.C. § 1373. This can increase the flow of information to federal authorities.

More justice data kept confidential

Information that courts or federal agencies give to the Criminal Justice Coordinating Council or the Sentencing Commission is exempt from public release. This narrows what the public can get under FOIA.

Broader definition of reckless driving behavior

The law adds conduct that shows a conscious disregard of the risk of property damage or injury to the Traffic Act. More dangerous behavior can now be treated as reckless for enforcement.

Bike and pedestrian deadlines delayed

Several bicycle and pedestrian safety dates move one year later. For example, December 31, 2025 becomes December 31, 2026, and March 31, 2026 becomes March 31, 2027. Project starts and announcements are delayed by one year.

Budget filed late triggers spending freeze

If the Mayor submits the annual budget after the Council’s set date, the Mayor’s Office and the City Administrator may not spend on nonpersonnel services until the day after submission. People also cannot submit certain requests to the Council Chairman. Reprogramming and grant budget modifications are paused during Council recess and until the budget is submitted.

Child behavioral health dashboard repealed

The law repeals Section 3 of the Child Behavioral Health Services Dashboard Act. That section had taken effect on March 7, 2025. This removes those dashboard rules and reduces that reporting and oversight.

Truancy pilot canceled; some data kept private

The temporary Pilot Truancy Reduction law enacted July 7, 2025, is repealed. Certain truancy‑pilot attendance and delinquency information is exempt from FOIA, so it is not public.

Alliance renewals easier, but stricter proof to apply

You can recertify for the DC HealthCare Alliance in person, by phone, or online. To apply, you must give at least two DC residency documents, like a lease or utility bill. The Department can allow exceptions for homelessness, domestic violence, or other special cases.

Health license fees moved to special fund

Starting September 1, 2025, licensing fees and fines for health occupations go into a Health Occupations Regulation Fund run by the Mayor. The money pays for professional boards and does not revert at year‑end. Some Basic Business License fees still go to the Basic Business License Fund.

Public worker changes: retiree work and funds

Retired police officers can work for the Department of Forensic Sciences full‑ or part‑time without losing retirement benefits. DC Public Schools cannot reprogram money set aside for educator residency sponsorship services. A subsection of the DC merit personnel law is repealed, removing its specific rules.

One tax-code subsection repealed

The law removes section 47-1803.02(a)(2)(QQ) from the tax code. How this changes your taxes depends on the removed rule and agency guidance.

New rules for bingo and gaming businesses

Commercial bingo, sports betting, and games of skill that were already authorized stay under their own rules. Only on‑premises alcohol retailers can get commercial bingo licenses, and none are issued before October 1, 2025. One charity‑gaming subsection is repealed, which may change how some rules apply.

Business combined filing window starts 2030

The 7-year combined filing period starts with the first tax year after December 31, 2029. A cross-reference is updated to include tax year 2020 or 2025. This changes when the multi-year combined filing rules apply.

Cannabis and health funds swept yearly

Beginning September 1, 2025, any leftover money in the Medical Cannabis Fund and the Medical Cannabis Administration Fund moves to the General Fund at fiscal year end. Any leftover in the Indoor Mold Assessment Fund also moves to the General Fund. These are accounting changes and may reduce carryover in these program funds.

Changes to river cleanup and defibrillator funds

Beginning September 1, 2025, the Anacostia River Clean Up and Protection Fund is a special fund that gets bag fees, special plate proceeds, and a tax check‑off. Its money does not revert and stays available with budget approval. The AED registration fee fund section is repealed effective September 1, 2025.

Elections and Emancipation Day funds sweep

Beginning September 1, 2025, any money left in the Fair Elections Fund and the Emancipation Day Fund at fiscal year end moves to the General Fund. This reduces carryover in these funds and adds to general budget flexibility.

Lobbyist fees locked to enforcement

Beginning September 1, 2025, fees the Board collects go into the Lobbyist Fund and can be used only to run and enforce lobbying rules. Unspent money does not revert at year end and stays available under budget rules.

New spending and paperwork rules for neighborhood commissions

Authorized officers may sign records electronically. Commissions can pay for taxi or rideshare trips as allowable expenses. Commissions may not fund services that duplicate District government services. Reports must now go to both the Council and the Office of Advisory Neighborhood Commissions.

Parks, market, and sports funds updated

Starting September 1, 2025, parks fees, concessions, certain developer payments, and Title IV fees go into a Parks and Recreation Fund; any leftover at year end goes to the General Fund. Eastern Market revenues must go into a special fund, and leftovers also go to the General Fund at year end. The Combat Sports Commission Fund is renamed, and any leftover money at year end moves to the General Fund.

Police fingerprinting and Rap Back rules

MPD or an authorized agent can take fingerprints when the law allows. They can send prints to the FBI, receive results, and share results with entities the law allows. MPD can make rules to run the Rap Back program under the city’s rulemaking law.

Public safety funds now sweep to General Fund

Beginning September 1, 2025, leftover money in the DOC Reimbursement Fund, Resident Welfare Fund, Medical Examiner Pathology and Toxicology Fund, and the Private Security Camera Incentive Fund goes to the General Fund. The Community‑Based Violence Reduction Fund is run by the Office of Victim Services and Justice Grants and also sweeps leftover money at year end. Starting September 30, 2026, the Nuisance Abatement Fund is capped at $2,000,000; any excess goes to the General Fund. These steps increase overall budget flexibility and limit fund build‑ups in these safety programs.

Rollbacks and edits to prior laws

The law repeals select sections from recent acts on human rights administration, carrier‑for‑hire oversight, mental health crisis support, and board‑of‑trustees training. It narrows which parts of a DYRS recidivism law now apply and makes wording fixes in the PLAZA Act. These changes adjust or roll back earlier rules without direct household payments.

Rules for public Wi‑Fi kiosks

The law defines interactive wayfinding kiosks that provide free Wi‑Fi, maps, alerts, and ads in public spaces. The Mayor can set design, parts, and placement rules. This brings public information and ads to sidewalks under city standards.

Some new programs start only when funded

Parts of the ranked choice voting law and a section of the CLEAN Collections law take effect only after their costs are included in an approved budget and financial plan. The Chief Financial Officer certifies the date and notifies the Budget Director. The Budget Director publishes a notice in the D.C. Register. Publication does not change when the sections start.

Some programs start after funding

Open movie captioning rules revive October 1, 2025, but one section starts only after its cost is in an approved budget and the CFO certifies the date. Insurance Database Titles I and II also start only after their costs are in the budget and the CFO certifies. The Budget Director will publish notices; publication does not change when these rules apply.

Sports venues financing and upgrades

The city can pledge the RFK Campus Infrastructure Fund as security for bonds for RFK projects and parking, as allowed by bond documents. After the Rock Creek Tennis Center land transfers to the District, Parks must start upgrades to meet ATP and WTA event standards.

Tighter limits on agency reprogramming

The law stops agencies from using reprogramming to change allocations the Council already denied, limited, increased, or created. Any exception must be sent to the Council for approval, no matter the dollar amount, with a written explanation.

Transport funds change; Circulator fund ends

Beginning September 1, 2025, the Transportation Initiatives Fund is a special fund with clear allowed uses, and any year‑end leftover goes to the General Fund. The DC Circulator Fund is repealed; any money in it on September 1, 2025 moves to the General Fund. The Mayor now oversees the Vision Zero Fund, and any leftover also moves to the General Fund at year end.

Veterans Affairs revenue fund created

Beginning September 1, 2025, the city creates the Office of Veterans Affairs Fund. Certain DMV fees and other special revenues for veterans services must be deposited into this fund. Any money left at year end moves to the General Fund.

Waste rules rolled back and fund sweeps

The law repeals one section of the Sustainable Solid Waste Management Act and a subsection of the Zero Waste Omnibus Act. Starting September 1, 2025, any money left in the Solid Waste Diversion Fund and the Underground Storage Tank Regulation Fund at year end goes to the General Fund. These changes alter waste rules and how leftover funds are handled.

Cap on paid leave admin spending

The Universal Paid Leave Implementation Fund is set at $25,812,158 in FY2029. Starting in FY2030, no more than 15% of estimated deposits can be used for the specified purposes each year.

Health funds and Medicaid recoveries realigned

Starting September 1, 2025, the Healthy DC and Health Care Expansion Fund supports the Healthy DC Program and other medical assistance programs, with year‑end balances going to the General Fund. Medicaid third‑party recoveries now go to the Attorney General and into a Medicaid Provider Fraud Reimbursement Fund, which repays Medicaid first, then the General Fund.

Hospital regulation timing and repeal

The law repeals Section 4 of the Certificate of Need Improvement Act that had taken effect June 10, 2025. It also changes another hospital‑related rule so it applies to fiscal year 2026 only, not 2025 and 2026. These steps narrow earlier hospital regulation changes.

Medical cannabis rules changed; fines redirected

Fines from certain medical cannabis rules are now deposited in the District’s General Fund. Two medical cannabis subsections are repealed, changing parts of the program’s legal framework.

New state health planning agency fund

The law creates a State Health Planning and Development Agency in the Department of Health and a special fund for its fees and fines. The fund pays agency salaries and planning costs. Any money left at year end goes to the General Fund.

Housing and environment funds swept yearly

Beginning September 1, 2025, any money left at fiscal year end in several housing and environmental funds moves to the city's unassigned General Fund. Examples include the DCHA Rehabilitation & Maintenance, DHCD Unified, Lead Service Line Replacement, Soil Erosion and Sediment Control, Hazardous Waste, Green Building, Renewable Energy Development, Product Stewardship, Pesticide Registration, and Historic Landmark‑Protection funds. This raises general budget flexibility and can reduce carryover for these programs.

Leftover benchmarking fines move to General Fund

Beginning September 1, 2025, money left in the Benchmarking Enforcement Fund at year end goes to the city’s General Fund. This can reduce carryover for enforcement but gives the city more budget flexibility.

School and early learning funds swept

Starting September 1, 2025, leftover money at fiscal year end in the DCPS School Facility Fund, the Community Schools Fund, and the Early Childhood Educator Pay Equity Fund goes to the General Fund. This improves citywide budget flexibility and may reduce carryover for these education programs.

Stronger truancy referrals and reports

High‑truancy schools must quickly refer students to DHS. In SY2024–2025, five secondary schools refer ages 14–17 after 15 unexcused days. In SY2025–2026, at least 10 schools, including a middle school, refer ages 10–13 after 10 days and ages 14–17 after 15 days. DHS issues reports by March 31 and September 30 each year. MPD must tell DHS whether a pilot student was arrested during the period studied. The data is protected from public release.

Unused labor funds moved to General Fund

Starting September 1, 2025, any money left in the Wage Theft Prevention Fund at year end goes to the General Fund. Unspent apprenticeship fine balances are also moved to the General Fund at year end. This reduces dedicated balances for enforcement or training but frees funds for other city uses.

Business, jobs, and records funds updated

Starting September 1, 2025, the Corporate Recordation Fund is reclassified under Licensing and Consumer Protection, and any leftover money at year end goes to the General Fund. The Recorder of Deeds Automation Fund has clarified deposit sources; leftovers also move to the General Fund. OCTFME’s special account is defined and broadened for deposits; leftovers move to the General Fund. Any money left in the Jobs Trust Fund at year end moves to the General Fund.

New special funds for licensing agencies

DLCP administers the Basic Business License Fund and sends any year-end balance to the General Fund. An Alcoholic Beverage and Cannabis Administration Fund collects licensing and permit fees to run ABCA; fines go to the General Fund. An Appraisal Education Fund is created for appraiser training and enforcement. Unspent balances in the ABCA and Appraisal funds do not revert, subject to budget approval.

Hotel tax deposits shift to local funds

Starting October 1, 2025, certain lodging tax receipts go to local funds. The law also directs $10.466 million in FY2026 and $6.140 million in FY2027 to the Economic Development Special Account. All other receipts from that tax go to local funds.

One D.C. tax code section repealed

Section 47‑1806.17 is repealed effective October 1, 2024. The excerpt does not describe how taxpayers are affected.

Some special tax rebates change or end

For a specific lease rebate, claimants must provide copies of leases, and the explicit $208,000 yearly cap wording is removed. Separately, the Whitman‑Walker Entities at St. Elizabeths tax rebate is repealed. The law sets no new cap amount or dates for the first item.

Sports fee and ballpark revenue rules updated

The ballpark fee is now called the sports facilities fee. It is paid by June 15 each year based on last year’s District gross receipts. Money first pays bond debt, then goes to the RFK Campus Infrastructure Fund. For FY2026, the first $32.92 million of any excess is allocated as specified, and first-dollar allocations for FY2027 and FY2028 are removed.

New special funds with year‑end sweeps

Beginning September 1, 2025, the city creates a Municipal Aggregation Fund to pay costs to form and run municipal energy aggregation contracts, and a Tree Fund for fees and penalties under the tree law. Any money left in these funds at year end goes to the General Fund. The subtitle’s rules apply starting September 1, 2025.

Updates to city finance and procurement

Money from selling surplus property pays OCP operating costs; leftovers go to the General Fund. The law removes two paragraphs in the Designated Fund Transfer Act, changing transfer authority. It directs certain Recorder of Deeds fees into the Automation Fund. One procurement subsection is repealed. Banks that hold ANC accounts must give the CFO copies or online access to ANC statements monthly or quarterly.

Year-end sweeps for city funds

Starting September 1, 2025, leftover money at fiscal year end moves to the General Fund from several special funds. Covered funds include the St. Elizabeths East Campus Redevelopment Fund, the State Athletic Activities Fund, the Subrogation Fund, the Vending Regulation Fund, and the Walter Reed Redevelopment Fund. This changes how the city holds year‑end balances.

Sponsors & Cosponsors

Sponsor

Phil Mendelson
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 10 • No: 2

House vote • 7/28/2025

Final Reading