District of ColumbiaB26-0450Council Period 26 (2025-2026)HouseWALLET

Fiscal Year 2026 Budget Support Congressional Review Emergency Act of 2025

Sponsored By: Phil Mendelson (Democratic)

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Bill Overview

Analyzed Economic Effects

162 provisions identified: 76 benefits, 32 costs, 54 mixed.

Child support not counted for aid

Starting Oct 1, 2025, public assistance programs do not count current child support as income. At least the first $200 you get each month is excluded in the specified calculation, and some programs disregard the full current payment.

McMillan Parcels get 20-year tax exemption

Starting October 1, 2029, the McMillan Parcels (Lots 809, 810, 814, 815) get a 100% property tax exemption for 20 years if conditions are met. The owner must operate 449 units, set aside one‑third of rental units as affordable at an average of 80% AMI, use certified business enterprises for at least 35% of construction dollars, and report compliance by each September 30. If the unit count falls short, the exemption is reduced in proportion.

More tax relief for community land trusts

Deeds and transfers to a community land trust are exempt from deed recordation and transfer taxes. CLT land is valued using average annual ground rent divided by 0.10, and CLT leaseholders can claim the homestead deduction. Taxes and penalties paid since October 1, 2018 for CLT transfers are forgiven and refunded, and some CLT property taxes paid through September 30, 2025 are also refunded.

Parkside lots get big tax break

Lots 866 and 868 in Square 5056 get a property tax abatement up to $300,000 per lot per year. The abatement runs 30 tax years starting October 1, 2029. A final certificate of occupancy must be issued by September 30, 2029, or the abatement is not allowed for that lot.

Prince Hall property taxes forgiven and exempt

Lots 37 and 828 in Square 333 are exempt from property, deed recordation, and transfer taxes while used for the Prince Hall Foundation’s purposes and not used only for commercial use. Unpaid Recorder of Deeds taxes for FY2025 are forgiven. In FY2026, unpaid and paid property taxes for Tax Years 2022–2025 are forgiven or refunded, up to a total cap of $1,284,271.

Higher base pay for tipped workers

The tipped minimum wage rises as a share of the regular minimum wage. It is 56% on Jul 1, 2026; 60% on Jul 1, 2028; 65% on Jul 1, 2030; 70% on Jul 1, 2032; and 75% on Jul 1, 2034. This applies only if you actually receive enough tips to make up the difference.

Bigger tax rebate for D.C. Central Kitchen

Beginning May 1, 2025, D.C. Central Kitchen can base its tax rebate on one or more leases, including leases it pays directly or indirectly. The prior $208,000 per‑year cap is removed. This allows larger qualifying rebates.

Excess revenue check unlocks set funding

By November 15, 2025, the Chief Financial Officer must certify whether FY2025 local revenues exceed the approved budget estimate and that excess funds are set aside per section 7262. Once certified, the law allocates $1,893,863 to carry out the repeal of a 2024 amplified sound regulation, split as $608,000 (FY2026), $419,874 (FY2027), $428,561 (FY2028), and $437,429 (FY2029). These funds only flow if there is enough excess FY2025 revenue.

Local child tax credit repealed

The law repeals the District’s local Child Tax Credit. Families can no longer claim this credit. This raises taxes for parents who used it.

New strings on Chinatown tax abatements

For abatements issued after October 1, 2025 on certain Square 485 lots, owners must keep or add a space that supports Chinatown culture, run or lease an Asian market after consulting local groups, and donate at least $300,000 to the District in the first abatement year. These duties last for the abatement period.

Businesses wait longer for deduction window

The law delays the start of a 7‑year combined reporting deduction until after December 31, 2029. It updates cross‑references to cover tax year 2020 or 2025. Combined reporting filers must wait longer to claim this deduction.

Medicaid expansion is now optional

The agency no longer must expand Medical Assistance under the prior mandate. The law changes required actions to discretionary ones and repeals a subsection, so expansion steps can be delayed or not taken.

Stricter Alliance rules, delayed limits

The DC Healthcare Alliance tightens who can enroll and stay covered. Income caps now depend on your age and when you enroll, and most people must show two proofs of DC residency. New enrollment stops for ages 26+ on Oct 1, 2025, and for ages 21+ on Oct 1, 2026, with some delayed exits for younger enrollees. The Mayor can limit covered services for adults and cap how many people a contract serves, but those service limits are delayed until Oct 1, 2026 if the CFO certifies enough excess FY2025 revenue by Nov 15, 2025. You can renew in person, by phone, or online, and there is a 90‑day renewal grace period with possible retroactive coverage if you stay eligible.

More civil legal help for residents

The Access to Justice Initiative funds civil legal help through three parts: the ATJ program, the Loan Repayment Assistance Program, and the Civil Legal Counsel Projects Program. It supports nonprofit partners, including a shared interpreter bank, and funds legal services in covered cases. The Mayor also runs a Community Legal Education and Resources Grant Program to fund legal representation, brief help, limited-scope work, and attorney training.

More access to home purchase help

DHCD must publish a dashboard with funding, rules, and average processing times. The program prioritizes low‑income households, seniors, displaced residents, and residents with disabilities, and uses rolling funding instead of a lottery. It bans using loan‑to‑value or the first mortgage amount to decide eligibility, accepts counseling completed within two years, and keeps a notice of eligibility valid at least through the end of the next fiscal year if funds run out. The Home Purchase Assistance Fund can provide loans, down‑payment help, and interim financing under Mayor‑set terms. Any money left in the Fund at year‑end moves to the General Fund starting September 1, 2025.

More money to preserve rentals

In FY2026, the Mayor must use $20 million from the Housing Production Trust Fund to preserve affordable rentals. Up to $30 million total may be used. If funds aren’t fully obligated by the end of the third quarter, the balance may be used for other authorized purposes. Prior committed projects should get preference.

Grants to hire returning citizens

The Office on Ex‑Offender Affairs runs a permanent grant program for employers who hire returning citizens. The law removes pilot language and makes the program ongoing. Funding levels and start dates are set by the agency.

Higher pay floor for direct care workers

For FY2026, provider reimbursement must support direct care pay at the highest of three amounts. The amounts are: 117.6% of the living wage in effect on July 1, 2025; the current minimum wage; or the current living wage.

Minimum pay for child care teachers

Child care centers that take Pay Equity Fund money must pay set minimum salaries. For Oct 1–Dec 31, 2024, examples include $43,865 for Assistant Teachers without a CDA and $51,006 with a CDA. For 2025, examples include $51,006 a year ($24.52/hour) for Assistant Teachers with a CDA and $75,103 for Lead Teachers with a bachelor’s in ECE. The Department will issue guidance so centers align pay minimums with teacher qualification rules.

New fund for DC worker pay

The District creates a special Employees’ Compensation Fund to pay compensation and related benefits. Money not spent in a year stays in the fund and does not revert. This takes effect on Sep 1, 2025.

Raises for public charter educators

For School Year 2025–2026, OSSE sends $30.8 million to public charter LEAs to raise educator pay. LEA leaders must promise the money only funds compensation increases paid during that school year.

Income tax rate stays 6.0% longer

The law keeps the income tax rate at 6.0% until October 1, 2026. A planned increase to 6.5% is delayed. Taxpayers pay the lower rate for an extra year.

Faster DHS local grant agreements, payments

For DHS local grants funded only by local operating funds where DHS is the sole grantor, DHS must send the grant agreement within 30 days after the fiscal year starts. The first payment must arrive within 30 days after the fiscal year starts, or within 30 days after DHS gets your signed agreement, whichever is later. The 30‑day first‑payment rule applies to agreements signed after October 1, 2026.

Help for sidewalk and mobile vendors

The Mayor sets rules for a vending amnesty program, and the CFO emails registered vendors about it. The Mayor can give grants to help get licenses and buy carts or trucks, and to support operations. The Department can waive late fees and penalties to reinstate a lapsed business license under Director‑issued rules.

More areas qualify for Prosperity projects

Mixed‑use or retail projects qualify if they are in a low‑income area under the tax code, or in a Retail Priority Area touching a Neighborhood Prosperity Fund boundary, or on a Main Street corridor touching that boundary. This expands where projects can qualify for support.

Grants for substance use outreach

DBH must award $1.75 million in targeted outreach grants by Oct 31, 2025 to nonprofits with harm‑reduction experience. In FY2026, $2.107 million from the Opioid Abatement Fund supports outreach, lab testing, and DBH program work. Grantees must submit results by Nov 30, 2026, and DBH must post reports within 30 days.

More housing and rental help funding

Beginning September 1, 2025, one-time money is set aside for FY2026 if the CFO certifies excess FY2025 revenue by November 15, 2025: $10 million to the Housing Production Trust Fund for preservation, $1 million to DHCD’s Housing Preservation Fund, and $2.95 million to Emergency Rental Assistance.

Targeted Homeowner Grant Fund created

Beginning September 1, 2025, the Mayor runs a Targeted Homeowner Grant Fund. Money appropriated for the program goes into the Fund. Up to 5% can cover admin costs each year. Any unused money at year end moves to the General Fund.

Charter school facility payments set

Facility payments for charter schools are set. For FY2027–FY2028: $3,850 per pupil (non-residential) and $10,396 (residential). For FY2029: $4,219 (non-residential) and $11,393 (residential). Starting FY2030, the amounts rise 3.1% each year.

Regular reports on restaurants and tips

Starting June 1, 2027 and every two years, the CFO publishes a report on restaurant and tipped-worker economics. It includes wage comparisons, average gross receipts, wage changes, number of establishments, and tax credit claims. By January 1, 2036, a special report must analyze the effect of a full tipped minimum wage match.

2-for-1 match for Cherry Blossom events

Events DC gives $2 for every $1 in corporate donations raised by April 30, 2026 for official Cherry Blossom Festival events. Each award is capped at $1,500,000. The law transfers $1,500,000 in FY2026 to fund the program.

Capital grants for theaters and arts

The Arts Commission must award: National Theatre $4,000,000; Howard Theatre $500,000; Lincoln Theatre $285,000 (FY2025). In FY2026, Woolly Mammoth gets $500,000. GALA Hispanic Theatre gets $450,000 by December 31, 2025 plus up to $50,000 in dollar‑for‑dollar matching based on verified donations, with matches completed by September 30, 2026.

FY2026 grants for business and Chinatown

For FY2026, the law directs one‑time grants: $2,451,000 for DM PEP grants; $5,140,000 to the Washington DC Economic Partnership; $750,000 for lead generation; $1,125,000 to help Gallery Place and Chinatown businesses during arena construction; $750,000 for storefront activations; and $250,000 for Chinatown culture. Also in FY2026, the Deputy Mayor must award at least $750,000 in total under the listed program.

WDCEP named lead; FY2027 grant set

The Washington DC Economic Partnership is named the main contractor to market and grow District business. In FY2027, $6,140,000 from the Account funds WDCEP’s retail and business attraction efforts.

Shifting special funds to local fund

Beginning September 1, 2025, the Chief Financial Officer moves named dollars from listed special accounts into the District’s local fund for FY2026–FY2029. The Healthy DC Fund transfers are set at $1,760,322.24 (FY26), $1,541,682.00 (FY27), $1,572,515.00 (FY28), and $761,095.00 (FY29). Any money left at year end in the SHPDA Fund and the Walter Reed Redevelopment Fund moves to the General Fund. The CFO also transfers $38,614.05 per year from the Accountability Fund and $49,987.95 per year from the Lobbyist Fund.

Higher vehicle and traffic fees

Vehicle fees increase. Examples: duplicate registration now $25, replacement tags $15, dealer proof $30. Registration classes have new amounts, like Class I $70 and Class IV $550, with a new $40 Class V for certain new EVs and a $70 Class VI for disability vehicles. Several traffic and administrative fees also rise (for example, $98 to $115 and $26 to $30).

Baby Bonds program is repealed

The law repeals the Child Wealth Building Act of 2021 (“baby bonds”). The program and any entitlement in that law are eliminated.

Bigger penalty for TANF noncompliance

If the Department of Human Services finds you noncompliant, your household’s TANF benefit is cut by 25%. The 25% cut applies to the assistance unit’s monthly payment.

Cuts to some senior and SNAP supports

On Sep 1, 2025, the No Senior Hungry Omnibus Amendment Act of 2022 is repealed. Also on Sep 1, 2025, subsection 5084(b) of the Food Stamp Expansion Act of 2009 is repealed. Seniors and SNAP households covered by those provisions may lose those specific supports.

TANF checks cut and frozen

TANF cash does not rise with inflation in FY2027–FY2030. If your unit has reached 60 months, your District‑funded TANF is 70% of your FY2026 amount in FY2027, 50% in FY2028, and 25% in FY2029 and after. These cuts start Oct 1, 2026. The Mayor can exempt up to 25% of assistance units each month from the reduced‑benefit rules.

Co-op property tax help ends Sept 2025

Property tax assistance for limited equity cooperatives is repealed on September 1, 2025. If you were getting this help, your property tax bill can rise after that date.

Home electrification help depends on funding

Parts of the DOEE home electrification program are now subject to available funding. If money is not available, DOEE may delay or skip services. Homeowners may face fewer benefits or longer waits.

Rapid Re-Housing has firm time limit

Rapid Re‑Housing clients must exit at the end of the program’s time limit. The Mayor sets the limit by rule, and it cannot be shorter than 12 months. The Mayor may extend limits by rule; clients exit at the end of any extension.

Farmers market support funding cut

Starting September 1, 2025, farmers market support funding drops from $250,000 to $140,000. The law also repeals Section 5 of that Act.

Higher BID assessments for businesses

Business Improvement Districts may raise annual assessments up to 5% instead of 3%. For tax year 2026, the Downtown BID can split that 5% total increase between the September 2025 and March 2026 bills.

Higher fees for construction dumpsters

If you place a construction dumpster in public space, you pay monthly permit fees: Month 1 $75; Month 2 $150; Months 3–4 $225 each; Month 5 $300; each month after adds $150. Fees apply per month per receptacle.

Temporary 1% hotel surtax on stays

A 1.0% hotel surtax applies to room and lodging sales from April 1, 2023 through September 30, 2027. Hotels owe the surtax on gross receipts for transient stays. This is in addition to other hotel taxes.

Rapid Re-Housing: faster exits, fewer supports

Case management is no longer guaranteed; you can still ask for it. If you leave because you hit the program time limit, you cannot get continuation of services. For exit notices on or after September 3, 2025 under the listed reasons, continuation‑of‑services does not apply. For notices before September 3, 2025, exits still occur even if an appeal is pending, but timing is set: you exit at 24 months in the program or on September 30, 2025, whichever is later. As of November 27, 2024, the Director can decide extensions without individual review and may deny them if funds are unavailable.

Tighter rules for nonprofit tax-exempt homes

Starting September 1, 2025, at least 50% of occupied units must be for households at or below 80% of AMI, and the rest at or below 120% of AMI, to claim the nonprofit property tax exemption. Rent for any unit cannot exceed the Housing Authority’s rent‑reasonableness maximum; that cap applies starting July 1, 2023. An exemption starts on October 1 of the tax year when OTR verifies the certification, and it cannot apply to periods before October 1, 2019.

FY2026 pay averaging for care workers

For FY2026, direct care providers may use a tiered pay scale if the average pay across all direct care professionals meets the FY2026 required amount. Some workers can be paid less and others more, as long as the average equals the required rate. This allowance ends December 31, 2026.

Ongoing background checks for workers, possible fee

The District runs an ongoing FBI Rap Back background-check program. Agencies can subscribe covered workers. MPD or its partner takes fingerprints and sends them to the FBI, which may keep them for future checks. MPD can charge a yearly subscription fee to the person or the agency. MPD will set detailed rules for how this works.

MPD can share truancy data with DHS

When DHS requests it, MPD provides student delinquency status information needed for truancy pilot reporting. DHS and MPD may set an agreement to protect the data. The shared information is exempt from FOIA.

More school mental health funding, new rules

In FY2026, grants for school‑based clinicians are at least $120,000 each, and total grants are at least $16.32 million. The Department cannot bar therapy for children, require billing above $15,000 to release funds, or cut grants for billed insurance claims. Grantees must report activities and salaries, including the prior two school years. A full improvement plan is due by Oct 15, 2025, and the implementation window extends through FY2026.

FY2026 school funding amounts set

For FY2026, the base per‑student amount is $15,070. Examples: Pre‑K3 is $20,194 and grades 9–12 are $18,385. Extra funds are set for special education and English learners, such as $29,688 for Special Ed Level 3 and $7,535 for an elementary ELL student. The hold‑harmless floor drops from 35% to 30%. Early literacy grants and support run only when money is available.

New rules for RFK project money

In FY2026–FY2027, extra RFK Fund money first pays any ballpark early redemption debt, then goes to the General Fund. In FY2028–FY2029, extra goes to the General Fund. Beginning FY2030, extra goes to the RFK Transportation Improvement Fund, capped at $20 million a year; any rest goes to the General Fund. The Mayor or a designated authority can pledge RFK Fund money to secure RFK bond payments. RFK Fund dollars do not revert and stay available across years; after ballpark bonds are fully paid, sports facilities fee receipts deposit into the RFK Fund.

Sports fee now funds RFK bonds

The "ballpark fee" is renamed the "sports facilities fee." Fee revenue first pays annual bond debt; after bonds are paid off, money goes to the RFK Campus Infrastructure Fund. For FY2026, the first $32.92 million of excess revenue is allocated under the Ballpark law. The law also creates the RFK Campus Infrastructure Fund to collect receipts and pay bond costs.

Hotel tax money steers to local projects

Beginning October 1, 2025, hotel surtax revenue goes to local funds. In FY2026, $10.466 million goes to the Economic Development Special Account; in FY2027, $6.14 million goes there, with the rest to local funds. Also starting October 1, 2025, certain tax revenue under §47‑2002.03a(a)(2), minus amounts already sent to the General Fund, is credited to the NCR reorganization Account.

Access to Justice funding is streamlined

Each year, the Bar Foundation receives money to run the Access to Justice Initiative. The Civil Legal Counsel Projects Program now operates within this Initiative, so its grants flow through it. This aligns funding for legal help for low‑income residents.

Free grocery delivery memberships pilot

In FY2025 and FY2026, up to 1,000 eligible residents get a free two‑year membership to a grocery delivery service. The Department of Health sets who qualifies and how to enroll.

More money for Medicaid personal needs

Beginning September 1, 2025, $500,000 per year in FY2026–FY2029 is set aside to raise the Medicaid personal needs allowance. This only happens if the CFO certifies enough excess FY2025 revenue by November 15, 2025.

Ombudsman helps with public benefits

If you apply for or receive District public benefits, the Health Care Ombudsman can help you. The program now covers benefit applicants and recipients for advocacy and assistance.

Solar and EV charging sites excluded

Starting September 1, 2025, property used for solar power, energy storage, solar energy management (meeting Energy Star), or EV charging is excluded from §47‑1005. This may reduce taxes or rules that applied before under that section.

Employers must list all pay sources

Starting January 1, 2026, employers must give workers a list of all pay sources beyond base wages and tips. This includes bonuses, commissions, and any share of service charges.

Help for internationally trained clinicians

Beginning October 1, 2025, the Department of Health helps internationally trained health workers get licensed. The program offers exam guidance, training and language support, and help with credentials.

Limits on use of Rap Back alerts

If an agency gets a Rap Back alert, it can use it only to decide if you qualify for a job, license, appointment, or covered role. The agency cannot share the alert further. This protects your privacy.

Paid summer CNA training for students

By August 30, 2026, OSSE funds a summer CNA program with $150,000. At least 25 District high school students are trained and supervised. Students must be paid $17 per hour. Students must take the CNA exam within two months and get hiring connections.

Pre-apprenticeship pilot for detained youth

In FY2026, the Department runs a one-year pilot grant for pre‑apprenticeship at New Beginnings. Eligible providers must have a track record. Training must lead to college credit or industry-recognized apprenticeships. Awardees must report outcomes within 14 months.

Retired police can work at Forensics

Retired police officers can work full‑ or part‑time at the Department of Forensic Sciences without losing their police retirement benefits. The pension law treats these jobs like other covered redeployments.

Tipped wage rule starts July 25, 2025

A wage rule in section 222(a)(1) of the Minimum Wage Act takes effect on July 25, 2025. This sets the start date for that rule to apply.

Youth re-entry services pilot grants

In FY2026, the Department funds a one-year pilot for youth re-entry aftercare. Grants can cover housing help, job training, school reenrollment support, and mentoring. DC-based groups get preference. Grantees report within 14 months, and the Department reports certain outcomes to the Attorney General and Council under juvenile privacy rules.

Appraisal Education Fund created

The law creates an Appraisal Education Fund run by the Mayor. Fees set by the Mayor and some civil penalties go into the fund. Money not spent in a year stays available if authorized in the approved budget and financial plan.

Fewer tickets from vending site managers

The law bars DCLP vending zone site managers from issuing infraction notices. Only other authorized officers can issue them. This removes one enforcement route against vendors.

More flexible small-business grants and uses

Non‑profit voluntary business associations can apply for certain Deputy Mayor grants. Grant funds can pay staff salary and benefits, and special police if the Deputy Mayor authorizes it. Retail Incentive Act payments can be disbursed in one or more allotments for cash‑flow flexibility.

Sidewalk vending oversight panel if needed

The law creates a Columbia Heights–Mount Pleasant Sidewalk Vending Zone Oversight Committee of up to three unpaid members. It helps with site plans, vendor outreach, and monthly Council updates. It only applies if the Mayor does not contract a vending zone manager, and it expires on September 4, 2027.

Arts commission cap raised to 40%

The Commission on the Arts and Humanities can allocate up to 40% under the cited rule, up from 30%. This allows a larger share for that purpose.

Cultural and community grants centralized

The Mayor may issue grants to people and groups that support cultural affairs, community relations, and partnerships under the Grant Administration Act. The Mayor provides centralized review and approval of grants for listed community offices and commissions. The law does not set funding amounts.

Grants for DC history and burial sites

In FY2026, Events DC must grant at least $350,000 to a nonprofit that teaches District history across all wards, and at least $250,000 to a nonprofit in the Carnegie Library for DC history work. The Office of Planning also runs grants for historic African American burial grounds established before January 1, 1955. Work on private land needs the owner’s written consent.

Interactive kiosks with city ad revenue

The Mayor can sign a master license to install and operate interactive wayfinding kiosks in commercial and other public spaces. The District gets a share of ad revenue shown on the kiosks. The Mayor may set rules on kiosk design, placement, and components under the normal rulemaking process.

Lobbyist fees stay in enforcement fund

Beginning 2025-09-01, all lobbyist fees are deposited in the Lobbyist Fund. The Fund can only be used to run and enforce lobbyist rules. Unused money does not revert at year-end and can carry forward with budget approval.

Public safety funding from excess revenue

If the CFO certifies enough excess FY2025 revenue by November 15, 2025, $3.5 million in FY2026 goes to expand in‑house DNA testing. The law also directs $638,628 for MPD officer housing incentives ($459,000 in FY2027 and $179,628 in FY2028), subject to the same certification rules.

Rock Creek Tennis Center upgrades

The District may take jurisdiction of part of U.S. Reservation 339, including the Rock Creek Tennis Center. After the transfer, Parks and Recreation must start a capital project to meet ATP and WTA event standards.

Steady funding for Anacostia cleanup

The Anacostia River Clean Up and Protection Fund is a special fund run by DOEE. Bag fees, certain license‑plate proceeds, and a tax check‑off flow into it. Money does not revert at year‑end and stays available if the budget authorizes it.

Surplus sales fund supports procurement office

Money in the Surplus Property Sales Fund pays Office of Contracting and Procurement operations. At fiscal year‑end, any remaining balance transfers to the General Fund’s unassigned balance.

Tighter rules on budget moves

Agencies must use specific budget fields in the District Integrated Financial System, including Object Class, Cost Center, funding sources, and Project details. Reprogramming cannot create new programs or undo Council-approved allocations. Any exception, no matter the dollar amount, must go to the Council with a written explanation of the unusual need.

Yearly report on park conditions

The Department of General Services must survey spray parks, artificial turf fields, playgrounds, and hard-surface courts each year. It must publish results by facility and send them to the Council and other officials by March 1.

Health Department takes over lead, waste rules

The Department of Health now regulates medical waste, some low‑level radioactive waste, and home health hazards like poor air and pests. Lead‑prevention and medical‑waste programs move from DOEE to the Health Department, with staff and funds. A lead standard is corrected to 0.7 mg/cm², effective March 16, 2021.

Lead-pipe testing in charter schools

Beginning September 1, 2025, $1 million in one-time money funds lead‑pipe testing in public charter schools for FY2026. This only happens if the CFO certifies enough excess FY2025 revenue by November 15, 2025.

Money restored to 911 and 311 services

The city removes a recurring $150,000 transfer from the 911 and 311 Assessments Fund and lowers a related table entry to $862,074. It also reverses two earlier $150,000 transfers and moves $300,000 from the General Fund back to the 911 and 311 Assessments Fund on October 1, 2025. This restores money for 911/311 services.

New public restrooms and city cleanup

DPW runs a Public Restroom Facility Program. Restrooms must be ADA-compliant, have running water, be movable, and support remote monitoring. Contractors must provide 24-hour maintenance and monthly reports. The Mayor can issue rules, and DPW can partner or cost-share to add more restrooms. The Office of the Clean City coordinates cleanup efforts and may give grants, but not to replace DPW staff.

More support to prevent lead poisoning

The Department of Health must run a lead‑poisoning prevention program for children. The Mayor can issue rules to support providers who treat children with lead poisoning.

New coordinator for long-term care

The District creates a full‑time Long‑Term Care Strategic Coordinator. By Jan 1, 2026, the Coordinator leads Age‑Friendly DC work, tracks services, builds workforce plans, and connects agencies to improve long‑term care.

One-time boost for childcare subsidies

Beginning September 1, 2025, $5.5 million in one-time money goes to OSSE for the Childcare Subsidy Program in FY2026. This money only flows if the CFO certifies enough excess FY2025 revenue by November 15, 2025.

$1.2M for special education school

In FY2026, the Public Charter School Board must send $1.2 million to St. Coletta Special Education Public Charter School. This is on top of regular per‑student funding. The transfer to the school’s bank is due by Nov 1, 2025.

Background checks for youth program staff

The Department of Employment Services can run criminal and traffic checks on employees and volunteers at Youth Employment Act host sites. This applies to people with direct contact or unsupervised access to youth.

Clarifies who counts as an LEA

The law defines a local education agency as DC Public Schools or a single charter group under one charter. This clarifies how the Healthy Schools Act applies.

Extra year for Community Schools grants

In FY2026, OSSE gives an extra year of funding to two Community Schools cohorts. FY2022 grantees get a fifth year and FY2024 grantees get a third year. The added funding totals $2.4 million.

Grant for hands-on learning in schools

In FY2026, OSSE must give a $500,000 grant to Live It Learn It by November 1, 2025. The grant funds microgrants and supports to expand experiential learning at high-need schools.

Grants to improve educator workplaces

In School Year 2025–2026, OSSE uses $300,000 to fund at least two community groups. Grants help schools and child care centers build and sustain healthy workplaces for educators. OSSE must pick recipients by November 26, 2025.

Library funds cover temp staff pay

Library Account money does not revert at year‑end if not spent. The Library Fund can pay temporary and on‑call workers for approved revenue‑generating activities. Spending still follows the approved budget and plan.

One-time funds for early educator pay

Beginning September 1, 2025, $1.5 million in one-time money goes to the Early Childhood Educator Pay Equity Fund at OSSE for FY2026. This happens only if the CFO certifies enough excess FY2025 revenue by November 15, 2025.

Stronger background checks in youth jobs

Employees and volunteers in Youth Employment Act programs who have direct contact or unsupervised access to youth must pass background checks. Foster parents and some grantees excluded by law are not covered. This expands safety screening for youth in these programs.

Study on new dual-language middle school

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

Stronger budget and tax-break oversight

Starting December 30, 2024, the CFO reports quarterly on the city’s reserve accounts. Committees must get a Tax Abatement Financial Analysis before marking up bills that grant targeted tax exemptions or abatements. The law also defines “Cost Center” for standard budget reporting.

6% sales tax on medical cannabis

A 6% tax applies to medical cannabis sales. In FY2026, tax proceeds go to the Healthy DC and Health Care Expansion Fund unless above the certified amount, in which case the excess goes to the General Fund.

Higher fee to record vehicle liens

The fee to record or release a vehicle or trailer lien on a title rises from $0.50 to $15 per entry. That is $14.50 more each time.

New fees for building conversions

Starting September 3, 2025, converting a non‑residential building to Residential Group R‑2 pays a $0.03 per cubic foot Building Conversion Permit Fee. A Green Building Fee of $0.002 per square foot also applies. Use your project’s cubic feet and square feet to compute the fees.

Possible new fees for taxi operators

Beginning September 1, 2025, DFHV runs the Public Vehicles‑for‑Hire Consumer Service Fund. DFHV can assess taxicab and for‑hire operators to pay for authorized uses. Any money left at year‑end moves to the General Fund.

Bike and walk safety deadlines delayed

Deadlines in the Bicycle and Pedestrian Safety Act are each pushed back one year. For example, the selection date is now December 31, 2026, and an implementation date moves to October 1, 2027.

Elections, Emancipation Day, and historic funds swept

Beginning 2025-09-01, any money left at year-end in the Fair Elections Fund, the Emancipation Day Fund, and the Historic Landmark-District Protection Fund is transferred to the General Fund. This reduces dedicated balances for public campaign financing, Emancipation Day events, and historic preservation work.

Health and lab funds now swept

Beginning 2025-09-01, any money left at year-end in the Indoor Mold Assessment Fund, the Medical Cannabis Administration Fund, and the Medical Examiner Pathology and Toxicology Fund is transferred to the General Fund. This reduces dedicated balances for public health, cannabis oversight, and lab work.

Late budget triggers spending and filing bans

If the Mayor files the budget late, the Mayor’s Office and City Administrator cannot spend nonpersonnel funds until the day after filing. During a Council recess, the Council does not accept reprogramming or grant‑budget changes and deadlines pause. If the budget is late, those requests must wait until after the budget is filed.

Less public access to some criminal data

The law blocks DC FOIA release of information that courts or federal agencies give to the Criminal Justice Coordinating Council and the Sentencing Commission. Those submissions are no longer available through FOIA.

Lower cap on program funding

The maximum funds allowed under the affected program drop from $6.8 million to $5.0 million. This lowers the ceiling on money that can be provided.

Part of immigrant legal aid law repealed

The law repeals section 3102 of the Immigrant Legal Services Program Act of 2018. That part no longer applies and is not replaced here.

Cap on paid leave fund use

The Universal Paid Leave Implementation Fund is set at $25,812,158 for FY2029. Starting in FY2030, the program can use no more than 15% of the money estimated to be deposited each year.

DCPS barred from residency sponsorship

DC Public Schools cannot reallocate its funds to provide permanent residency sponsorship services for educators. This removes one source of employer‑funded immigration sponsorship.

Jobs and wage enforcement funds swept

Beginning 2025-09-01, any money left at year-end in the Jobs Trust Fund and the Wage Theft Prevention Fund is moved to the General Fund. This reduces automatic carryover for job training and wage enforcement activities.

School, childcare, and athletics funds swept

Beginning 2025-09-01, any money left at year-end in the DCPS School Facility Fund, the Early Childhood Educator Pay Equity Fund, and the State Athletic Activities Fund is moved to the General Fund. This reduces dedicated balances for school buildings, educator pay, and school athletics.

Whitman-Walker tax rebate repealed

Effective September 1, 2025, the law repeals the Whitman-Walker Entities at St. Elizabeths Tax Rebate Amendment Act of 2022. The named entities no longer receive that rebate.

More fee waivers; fines rule set

The law expands programs to cover fee and penalty waiver and forgiveness. It also sets a threshold: if you owe the District (not DMV) more than $1,000 in fines, penalties, or interest, the related rule applies starting September 1, 2025.

DC staff rule repealed Sept 2025

A subsection of the District personnel code (section 406(b)(25)) is repealed and stops applying on September 30, 2025. This changes rules that affect some District government employees.

Teacher literacy training deadlines set

Teachers must complete OSSE-approved structured literacy training or show competency. New hires have one year to comply. Kindergarten teachers by 2026–2027, first grade by 2027–2028, second by 2028–2029, and third by 2029–2030. Some deadlines depend on available funding.

Truancy pilot eases some school rules

Schools in the truancy pilot do not have to follow a listed subsection’s rules for students ages 14–17 during the pilot. This reduces certain legal duties for those schools while the pilot runs.

Truancy pilots and student privacy

The District runs truancy pilots in 2024–2025 and 2025–2026 at selected schools. Schools must refer students 14–17 after 15 unexcused full-day absences, and students 10–13 after 10, within two school days. Reports must track whether students were arrested during the period. Certain delinquency-status records from the pilots are protected from FOIA disclosure.

Unresponsive parents referred to child welfare

For students ages 10–13 in the pilot, if a parent does not reply to DHS within 10 business days or refuses services, DHS must refer the child to CFSA. This creates a required handoff when outreach fails.

Property tax rules shift to 2026

The law changes several references from tax year 2025 to tax year 2026. This shifts the timing of linked property tax rules by one year.

Business license fund and threshold changes

The Basic Business License Fund is a special fund run by the licensing department. Any money left at year‑end moves to the General Fund. The law also raises a monetary threshold in licensing law from more than $100 to more than $1,000.

Games of skill: new license rules

Authorized commercial bingo, sports wagering, and games of skill are excluded from a general gambling restriction. Retailers offering games of skill must hold a retailer license and a game‑of‑skill endorsement. The Alcoholic Beverage and Cannabis Administration now processes retailer licenses for this purpose.

New rules for sidewalk vending zones

Vending zones can be managed by a city employee or a private group under contract. Zone managers must enforce the site plan and approve cart and table designs, and must hold a public market manager license. Vendors must list both business and, if different, home addresses when registering.

AED registration fee fund eliminated

The law repeals the special fund for Automated External Defibrillator registration fees. The city no longer keeps these fees in that dedicated fund.

ANC rules updated; more travel reimbursed

ANCs must send certain reports to both the Council and the Office of ANCs. ANCs can reimburse taxi and rideshare fares for ANC business. The law repeals three ANC Act subsections and makes one reprogramming step mandatory instead of optional.

Bedbug law and some code rules repealed

On September 1, 2025, the law repeals the Bedbug Control Act of 2022. It also removes a construction-code approval subsection and parts of the solid waste and zero waste laws. Landlords, households, and contractors may see changes in duties or services.

Energy, tree, and water funds swept

Beginning 2025-09-01, unspent money at year-end in the Renewable Energy Development Fund, the Tree Fund, the Lead Service Line Replacement Fund, and the Green Building Fund is transferred to the General Fund. The law also defines what revenues go into these special funds.

Faster contracting for DC Healthcare Alliance

DC Healthcare Alliance contracts the Mayor signs are exempt from most procurement rules, but must follow section 202 of the procurement law. This streamlines buying services but reduces some procurement safeguards.

Fund transfer changes start July 1, 2025

Changes in Section 4073 to the Designated Fund Transfer Act take effect July 1, 2025.

Hospital services rule applies to FY 2026

The law limits the named Hospital and Medical Services Corporation provision to fiscal year 2026 only, removing 2025 from coverage.

Justice boards changed; DOC sharing clarified

The law ends the Commission on Fathers, Men, and Boys. The Criminal Code Reform Commission dissolves on September 30, 2025. The Office on Ex‑Offender Affairs remains but without the subordinate‑cluster label. The Department of Corrections can share information when federal law requires it.

Licensing and city fee funds swept

Leftover money at year-end now goes to the General Fund for several city funds. Beginning 2025-09-01, this includes the Corporate Recordation Fund, Recorder of Deeds Automation Fund, Vending Regulation Fund, and the OCTFME Special Account. The law also renames the Combat Sports Commission Fund and applies the year-end sweep, and it applies the same sweep to the Benchmarking Enforcement Fund during fiscal close.

More recoveries to Subrogation Fund, then swept

Beginning 2025-09-01, recoveries from subrogation cases prosecuted by the Attorney General are credited to the Subrogation Fund. Any money left in the Fund at year-end then moves to the General Fund.

New special funds; year-end sweeps

The law creates several special funds for city programs. Most move any leftover money to the General Fund at fiscal year-end. Examples include new funds for pharmacy licensing, community schools, transportation and vehicle inspections (starting 2025-09-01), and Eastern Market (2025-09-01). The Municipal Aggregation Fund also starts 2025-09-01. A nuisance abatement fund can hold up to $2,000,000 and starts 2026-09-30; any excess and year-end balances go to the General Fund.

Opioid proceeds commission restructured

The Opioid Litigation Proceeds Commission now has 15 members with set qualifications. Chairs serve two‑year terms with a two‑term limit. The Commission must engage with agencies and may create expert subcommittees.

Parks and Recreation Fund created, leftovers swept

Beginning 2025-09-01, the Parks and Recreation Fund is created and run by the Mayor. Fees for park use, concessions, and some developer payments go into the Fund. Any money left at the end of the fiscal year is moved to the General Fund.

Public restroom program moved to DPW

The law repeals several parts of the old public restroom law. Those sections no longer apply. The Department of Public Works now runs the program under a new structure.

Public safety and justice funds swept

Beginning 2025-09-01, year-end leftovers in the Department of Corrections Reimbursement Fund, the Resident Welfare Fund (commissary revenue), and the Private Security Camera Incentive Fund move to the General Fund. The Community-Based Violence Reduction Fund is a special fund run by the Office of Victim Services and Justice Grants, and its year-end leftovers go to the General Fund as part of fiscal close.

Rollbacks to procurement and HR rules

Effective September 1, 2025, the law removes a procurement subsection (208(f-7)), repeals the Procurement Agencies Alignment Amendment Act of 2022, and repeals a subsection of the Comprehensive Merit Personnel Act. These changes alter agency contracting and employment rules.

Stronger oversight of ANC finances

Banks and credit unions that hold ANC accounts must send account statements or online access to the CFO, monthly or quarterly, at oft.bankingservices@dc.gov. Authorized ANC officers can use electronic records and e-signatures. ANCs may not pay for services the District government already provides.

Transit fund repealed; Vision Zero changes

Beginning 2025-09-01, the DC Circulator Fund is repealed, and any money left on that date moves to the General Fund. On the same date, the Mayor becomes the administrator of the Vision Zero Pedestrian and Bicycle Safety Fund, and its year-end leftovers go to the General Fund.

Unused environmental funds shift to General Fund

Beginning 2025-09-01, any money left at year-end in these environmental programs goes to the General Fund: hazardous waste and toxic chemical reduction, soil erosion and sediment control, solid waste diversion, product stewardship, pesticide registration, and underground storage tank regulation. Agencies no longer keep leftover balances in these funds after the fiscal close.

Veterans Affairs Fund created with DMV fees

Beginning 2025-09-01, the Office of Veterans Affairs Fund is created and run by the Mayor. Special purpose revenue for the Office, including certain DMV fees, is deposited into the Fund. Any money left at year-end goes to the General Fund.

New fund for alcohol and cannabis licensing

The law creates a special fund for alcohol and cannabis licensing and permit fees. These fees go into the fund to pay for agency operations. Penalties and fines go to the General Fund. Money in the fund does not revert and stays available if authorized in the approved budget and financial plan.

New health funds and rules

DC creates and updates several special funds for health. The Healthy DC Fund pays for medical assistance but moves any year‑end balance to the General Fund. The Health Occupations and Interim Disability Assistance funds keep unspent money from reverting, supporting licensing and disability aid. New funds also pay for health‑plan grievance work and reimburse Medicaid from fraud recoveries. The State Health Planning and Development Agency and its fund are established to support health planning.

Chinatown project size rules defined

For listed properties in Square 485, a project counts as a "repositioning" if it is at least 50,000 gross square feet and makes defined conversions or upgrades. Officials may use past occupancy certificates or affidavits to verify prior use.

Eminent domain for 1600 North Capitol

The Mayor may use eminent domain to acquire Lot 48 in Square 3100 (about 1600 North Capitol Street NW) for revitalization or redevelopment. The acquisition follows existing condemnation procedures. Owners receive statutory protections and compensation.

Housing and redevelopment funds swept at year-end

Beginning 2025-09-01, any money left at year-end in the DCHA Rehabilitation and Maintenance Fund, the DHCD Unified Fund, and the St. Elizabeths East Campus Redevelopment Fund goes to the General Fund. This reduces automatic carryover for housing repair and redevelopment programs.

More areas qualify for Chapter 8 work

The law expands Chapter 8 areas to include Central Washington plus 1,750 feet and Near Northwest plus 1,750 feet. The Mayor can also add other office‑heavy areas with high vacancies.

2025 truancy pilot is repealed

The law repeals the Pilot Truancy Reduction Temporary Amendment Act of 2025. The temporary changes from August 23, 2025 no longer apply.

Early educator pay sections repealed

The law repeals Section 4032 and section 4033(b)(2) of the Pay Equity Fund law, and removes a second section 2(b)(1) in the Early Childhood Educator Pay Scales Act. Programs or rules that relied on these parts may change.

Oversight of $1.2M charter transfer

After sending $1.2 million to St. Coletta, PCSB must prove the transfer within five business days. The school must file quarterly spending reports. PCSB may treat missed reports as fiscal mismanagement.

Unspent apprenticeship fines moved yearly

If apprenticeship fine money is not spent by year‑end, the CFO transfers it to the city’s General Fund. This reduces funds that stay dedicated to apprenticeship programs and moves them to the general budget.

Marijuana fine money goes to General Fund

Revenue from certain marijuana‑related fines now goes into the District’s General Fund. The law also repeals the cited related sections.

Some lottery and tax sections repealed

The law removes a lottery law section and a DC tax code section (47‑1803.02(a)(2)(QQ)). These provisions no longer apply.

Government can be generation owner

The law treats government entities as possible owners of electric generation assets under the retail competition law. This rule applies back to December 13, 2013.

Sponsors & Cosponsors

Sponsor

Phil Mendelson
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 13 • No: 0

House vote • 11/4/2025

Final Reading, CC