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District of ColumbiaB26-0659Council Period 26 (2025-2026)HouseWALLET

Fiscal Year 2027 Local Budget Act of 2026

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Bill Overview

Analyzed Economic Effects

49 provisions identified: 44 benefits, 3 costs, 2 mixed.

District budget funds services and administration

The FY2027 operating budget is capped at the lesser of District revenues or about $21.876 billion. It runs from October 1, 2026, through September 30, 2027, with adjustments for federal payments Congress approves. Sources include $12.242 billion in local funds, $782.45 million in dedicated taxes, and $1.355 billion in federal grants. Government administration gets $1.261 billion, including buildings, finance, legal services, technology, and the Council. Listed agency funds remain spendable through September 30, 2027; each fund's rules cover either FY2027 deposits or all deposit years.

District funds debt and emergency response

The law provides about $2.123 billion for financing and related District costs, including debt payments and emergency planning. This includes a requested $70 million federal payment for emergency planning and security, adjusted to match Congress's appropriation. The Mayor must also repay the District National Guard for emergency services performed in militia status at the Mayor's request. The Mayor and the Guard's Commanding General jointly set and certify that amount; funds are available as advance payment.

Billions fund water service and construction

The law provides about $844.1 million for water and sewer operations and $123.97 million for the Washington Aqueduct. Water utility reception and representation expenses cannot exceed $25,000; official meetings cannot exceed $15,000. It also provides about $8.913 billion for construction: $1.511 billion for wastewater treatment, $2.542 billion for sanitary sewers, and $2.597 billion for the water system. Construction also includes about $227.925 million for non-process facilities, $1.077 billion for combined sewer overflow, $465.01 million for the Aqueduct, $110.876 million for stormwater, and $382.917 million for equipment. An additional requested $8 million federal payment adjusts to what Congress appropriates for FY2027; these provisions do not set household water rates.

Health and human services receive major funding

The law provides about $7.561 billion for District human support services, including health care and social services. Funding comes from local funds, dedicated taxes, federal grants, Medicaid payments, other funds, private sources, and requested federal payments. The total adjusts to the federal payment funds Congress actually appropriates for FY2027. Separately, the Health Benefit Exchange Authority receives about $47.44 million from enterprise and other funds. These appropriations do not set new household eligibility rules, insurance premium assistance, or individual payment amounts.

District construction funding rises with transportation cuts

The law adds a net $3.508 billion for District capital construction projects. Funding includes about $2.585 billion locally, $803.131 million from the federal highway fund, $101.876 million from the District highway fund, and $32.144 million in federal funds. It also cancels $14.104 million in local transportation funding. Construction money stays available until spent and can only fund its intended projects and purposes. Transfers from the act's Pay-As-You-Go Capital funding can increase project amounts.

District funds education services and tuition support

The Office of the State Superintendent of Education receives about $705.70 million for education services and programs. The amount includes requested federal payments for resident tuition support and school improvement. Funding is adjusted to reflect the federal payments Congress actually appropriates for FY2027. This provision does not set individual award amounts or eligibility formulas.

Schools and university receive early funding

On July 1, 2027, public schools, the District university, and special education transportation receive early FY2028 funding. Each receives 10% of its respective local-funds appropriation in the District's adopted FY2028 budget. Public charter schools receive a 30% advance on the adopted local appropriation for charter-school payments. A new charter school agency that first opened after December 31, 2026, receives 45% instead. All advances count against final FY2028 appropriations; they are early funding, not extra money or family payments.

District funds ballpark and convention operations

The Washington Convention and Sports Authority receives about $268.32 million from enterprise and other funds. The Ballpark Preservation and Improvement Fund receives about $37.84 million. Ballpark funding includes $31.714 million in dedicated taxes and about $6.13 million from enterprise and other funds. These appropriations support the authority and ballpark fund, not direct payments to households.

Lottery funds cover operations and prize payments

The Office of Lottery and Gaming receives about $222.20 million from enterprise and other funds. After notifying the Mayor, the office can increase spending authority for costs tied directly to unexpected excess lottery revenue. Covered uses include General Fund transfers, prizes, agent commissions, and gaming-related fees. Increases are limited to necessary amounts not already included in the appropriation.

Dedicated transit money funds lasting improvements

Money deposited into the Washington Metropolitan Area Transit Authority Dedicated Financing Fund pays for transit capital improvements. Deposits received or expected are appropriated for that purpose. The money stays available until spent and does not return to the General Fund. This provision does not state a total amount or change rider fares.

Paid leave funding stays available for workers

The law provides about $184.07 million from enterprise and other funds to the District's Universal Paid Leave Fund. All deposits, regardless of fiscal year, are available to spend through September 30, 2027. This supports the paid leave program and eligible claimants. It does not change claimant eligibility or benefit amounts.

District funds workforce activities for job seekers

The Workforce Investment Account receives about $105.38 million in local funds. The money supports workforce investment activities. This provision does not set participant eligibility rules or individual household payment amounts.

District university and student funds stay available

The law provides about $206.44 million from enterprise and other funds to the University of the District of Columbia. The money does not return to the General Fund and stays available through September 30, 2027. Higher Education Incentive Program Fund deposits from any fiscal year are also available through that date. These funding provisions do not set new student award amounts or eligibility rules.

Unemployment trust receives funding for eligible workers

The law provides about $216.84 million from enterprise and other funds to the District's Unemployment Insurance Trust Fund. This supports the trust that funds eligible unemployment benefits. The provision does not change who qualifies or how much claimants receive.

Nonresident university subsidies require tuition minimum

For the year ending September 30, 2027, the University of the District of Columbia faces limits on subsidizing nonresidents. It cannot use its subsidy appropriation for their education unless its Board adopts a tuition schedule. That schedule must charge nonresidents at least as much as comparable public colleges in the metropolitan area. The law does not set a specific tuition amount.

Extra revenue restores reserves before program funding

The first $150 million in qualifying extra FY2026 local revenue restores the Fiscal Stabilization Reserve; qualifying FY2027 revenue covers any shortfall. FY2026 extra revenue uses June, September, or December 2026 estimates against the February 27, 2026 estimate, plus specified revenue and transfers. FY2027 extra revenue uses those quarterly estimates against resources already appropriated for FY2027. After restoration, up to $50 million goes in order: $9 million for the Housing Authority if federal emergency housing vouchers expire; $3 million for Emergency Rental Assistance; $2 million for Credible Messengers; and $36 million for workforce programs. June and September funds must be allocated by October 1, 2026; December funds fill remaining priorities by January 1, 2027.

Council funds home security and work expenses

During FY2027, the Council can spend up to $390,000 on security at Councilmembers' permanent homes. Assessments are capped at $260,000; improvements require an authorized assessment, follow Council policy, and cannot exceed $10,000 per Councilmember. The Council can also pay employees' job-related credentials and uniforms, plus settlements or judgments against the Council. Councilmembers can charge personal vehicles outside the John A. Wilson Building under the Secretary to the Council's policies. These authorities end September 30, 2027.

Youth programs can cover overnight travel costs

During FY2027, the Mayor can fund food and lodging for youth, young adults, and participating parents or guardians. Participants must be in a District government program involving overnight travel outside the District. Costs cannot exceed the applicable General Services Administration daily rates. The authority ends September 30, 2027.

Emergency workers can receive meals and drinks

During FY2027, the Mayor can provide food and drinks to District employees deployed for a declared snow or other emergency. Spending cannot exceed $30 per employee per day. This authorizes meals, not cash payments. The authority ends September 30, 2027.

Arts grants get longer spending windows

Arts and Humanities Fund deposits remain available through September 30, 2027, regardless of deposit year. Budgeted amounts from available fund balances committed to grant awards during FY2027 remain available through September 30, 2030. This gives covered arts grants a longer spending window. No total funding amount is stated.

District athletics fund can spend current deposits

FY2027 deposits in the State Athletics Activities, Programs, and Office Fund are available through September 30, 2027. The money supports the District State Athletics Commission and programs funded by the account. The law does not state an amount.

District can arrange transportation work on parkland

During FY2027, the District can make annual or multiyear transportation agreements with the National Park Service. Agreements cover District transportation infrastructure and related facilities on National Park Service land within the District. Spending must serve the agreements' purposes and use funds appropriated and available in the year spent. The agreement authority ends September 30, 2027.

District funds legal help and lawyer support

The law makes about $31.79 million available for a grant to the District of Columbia Bar Foundation. It supports Access to Justice grants, the Poverty Lawyer Loan Repayment Assistance Program, and Civil Legal Counsel Projects. The money remains available through September 30, 2027, regardless of fiscal year. The law does not set individual service or loan repayment amounts.

District funds refunds and legal payments

The law provides about $25.34 million in local funds for refunds, legal settlements, and judgments against the District. The District can add applicable or available funds as needed. The money pays people and organizations owed these amounts, but the law does not set individual payments.

Library keeps funds for books and operations

Five library accounts keep deposits available until spent, regardless of deposit year. They cover Books From Birth, copying and printing, revenue-generating activities, E-Rate reimbursements, and library collections. By February 2, 2027, the Chief Financial Officer must add each account's remaining FY2026 balance to its spending authority. The Chief Librarian can also use up to $8,500 for official receptions, representation, or purposes allowed by the Discretionary Funds Act.

Charter schools get quarterly funding payments

Public charter schools receive their District allocation in quarterly payments. The first payment is due within 15 days after the fiscal year begins. If operating schools do not receive the full allocation through the per-student formula, remaining money stays available for public education. That spending authority lasts through September 30, 2027, under the existing public education use rule.

Child care and education funds stay available

The Office of the State Superintendent of Education can spend deposits in four funds through September 30, 2027, regardless of deposit year. These are Access to Quality Child Care, Charter School Credit Enhancement, Special Education Enhancement, and Student Enrollment. Advanced Technical Centers, Community Schools, and Early Childhood Educator Pay Equity funds are also available through that date. For those three funds, only deposits made during FY2027 qualify. The law does not set individual payments or new eligibility rules.

Public school program funds stay available

District public schools can spend deposits in six named funds through September 30, 2027, regardless of deposit year. They cover at-risk student funding, afterschool copayments, food services, sales and sponsorships, E-Rate education, and Reserve Officer Training Corps programs. School Facility Colocation Fund deposits are also available through that date, but only for deposits made during FY2027. The law does not set new family copayments or individual payments.

Student transportation can fund smaller-route reduction incentives

Special Education Transportation funds can pay financial incentives to reduce routes serving two or fewer students. The law does not set incentive amounts or specify how many routes change. It does not directly require families to change transportation arrangements.

Business districts receive funds and dedicated revenue

The law authorizes $43.23 million in transfers to business improvement districts, including $41 million from other funds. General Fund spending authority can rise when revenue legally dedicated to a district exceeds the budgeted amount. This allows all of that dedicated revenue to reach the district organization. These are organizational funds, not direct household payments.

District can carry forward and move funds

Listed non-lapsing funds keep their unspent FY2026 balances available for their stated purposes through September 30, 2027. Local, dedicated-tax, and other funds can be moved between uses under District law through November 15, 2027. Eligible local operating money moved to capital uses in the current or prior four fiscal years can return to operations. Money from debt issued for capital projects cannot fund operating expenses. General Fund spending authority can also rise to transfer legally dedicated enterprise revenue that exceeds its budgeted amount.

District can cover infrastructure contract exit costs

The District can cover termination costs for qualifying multiyear public-private infrastructure contracts entered into during FY2027. It can also cover termination, transfer, or ownership-change costs for qualifying FY2027 energy contracts and task orders. Those energy agreements must concern savings at District buildings or on-site energy generation and distribution. The Chief Financial Officer must certify local funds are available; emergency and contingency cash reserves cannot be used. Allocated money remains available until spent, regardless of fiscal year.

District development funds remain available for projects

Several development funds keep deposits from any fiscal year available through September 30, 2027. These are the Economic Development Special Account, Industrial Revenue Bond Account, Soccer Stadium Financing Fund, Vitality Fund, and Walter Reed Reinvestment Fund. The St. Elizabeths East Campus Redevelopment and Walter Reed Redevelopment funds keep only FY2027 deposits available under this authority. No funding total or direct household payment is stated.

District funds green financing until spent

The District Green Finance Authority receives $3.75 million from enterprise and other funds. The money remains available until spent. This provision does not set household eligibility rules or payment amounts.

District pays vendors for recovered revenue

Beginning October 1, 2026, local funds cover qualifying revenue-recovery vendor fees, including legal fees. The fees must be obligated during FY2027. Covered contracts pay vendors a fixed percentage of District revenue recovered from third parties. The funds are available regardless of fiscal year; this is not a household payment.

District reserves stay available through fiscal year

Money in the Cash Flow Reserve Account remains available for spending through September 30, 2027. The same deadline applies to the Fiscal Stabilization Reserve Account. Both rules cover deposits from any fiscal year. These authorities do not create direct household payments.

Film rebate funds stay available longer

Film, Television and Entertainment Rebate Fund deposits remain available through September 30, 2027, regardless of deposit year. FY2027 deposits in the OCTFME Special Account are also available through that date. This preserves spending authority for entertainment-related funding. The law does not set rebate amounts or new eligibility rules.

Retirement fund earnings cover board expenses

The District Retirement Board receives about $42.12 million from earnings of applicable retirement funds. The money covers legal, management, investment, and administrative fees and expenses. The law does not change retirement benefit eligibility or payment amounts.

Restitution and tenant repair funds stay available

Beginning October 1, 2026, deposits into two funds can increase the Attorney General's budget. These are the Attorney General Restitution Fund and Tenant Receivership Abatement Fund. The money stays available until spent, without a fiscal-year deadline. The law does not set deposit amounts or name individual recipients.

Electric line and renewable grants stay funded

Payments from Potomac Electric Power Company and related companies, plus interest, fund District transportation work to bury electric distribution lines. The money covers design, construction, acquisition, and installation costs. It stays available until spent for those purposes and does not return to the General Fund. Separately, available Renewable Energy Development Fund balances can be committed in FY2027 under grant awards lasting through September 30, 2030. Money committed under those awards remains available to spend through September 30, 2030; no funding amounts are stated.

Dedicated taxes fund projects and debt repayments

The law provides about $48.04 million in dedicated tax funding for the District's Tax Increment Financing Program. It also provides about $2.26 million in dedicated taxes to repay District revenue bonds. Another $694,425 in dedicated tax funding repays PILOT financing. These appropriations support projects and financing obligations; they do not create a new household payment or duty.

Funding keeps retiree benefits trust running

The law provides about $8.77 million from enterprise and other funds to administer the District's retiree benefits trust. This pays for running the trust. It does not change retirees' eligibility or benefit payments.

Homeowner and historic preservation funds stay available

FY2027 deposits in the Targeted Homeowner Grant Fund stay available through September 30, 2027. The same deadline applies to FY2027 deposits in the Historic Landmark-District Protection Local and O-Type funds. This preserves spending authority for homeowner and historic-preservation support. The law does not set grant amounts or household eligibility rules.

Housing assistance and preservation funds stay available

Deposits from any year in four housing funds stay available through September 30, 2027. They are Home Again Revolving, Housing Preservation, Negotiated Employee Affordable Housing, and the Section 108 Debt Reserve Account. FY2027 deposits in the Housing and Community Development Unified Fund and Home Purchase Assistance Fund also stay available through that date. Rental Housing Registration Fund spending can begin at the start of the period set by existing law. The provision does not set household awards or new eligibility rules.

Housing production and finance programs receive funding

The Housing Production Trust Fund receives about $62.61 million: $52.61 million in dedicated taxes and $10 million in other enterprise funding. All deposits, regardless of year, are available through September 30, 2027. The Housing Finance Agency receives about $19.88 million from enterprise and other funds. Money budgeted without a fiscal-year limit for reverse mortgage foreclosure prevention and the public housing credit-building pilot remains available through that date. These provisions do not set household award amounts or new eligibility rules.

Job programs can provide food and incentives

The Department of Employment Services can use appropriated money for food, non-alcoholic drinks, and incentives for program participants. Incentives can be cash or noncash. The department can also provide food and non-alcoholic drinks to its employees. Other District and federal laws still apply; this is spending permission, not a guaranteed benefit.

Small business assistance funds stay available

Deposits from any fiscal year in five District business funds stay available through September 30, 2027. The funds cover Art All Night, small business capital access, licensing fee reimbursement relief, streetscape business relief, and Ward 7 and Ward 8 entrepreneur grants. This preserves spending authority for those programs. The law does not state how much any business receives.

Charter schools must pay annual audit costs

Each District public charter school must pay for its own annual financial audit. The law does not set the audit fee. This assigns a school expense, not a direct charge to families.

District budget can cover required banking fees

During FY2027, the Chief Financial Officer's budget can increase to cover required fees for maintaining District bank funds. The increase is limited to those banking fees, with no fixed dollar amount. This authority runs from October 1, 2026, through September 30, 2027. These are District expenses, not new household banking fees.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Phil Mendelson

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 174 • No: 6

House vote • 6/23/2026

Other

Yes: 13 • No: 0

House vote • 6/23/2026

Other

Yes: 13 • No: 0

House vote • 6/23/2026

Other

Yes: 13 • No: 0

House vote • 6/23/2026

Other

Yes: 9 • No: 2 • Other: 2

House vote • 6/23/2026

Other

Yes: 13 • No: 0

House vote • 6/23/2026

Other

Yes: 13 • No: 0

House vote • 6/23/2026

Other

Yes: 13 • No: 0

House vote • 6/23/2026

Other

Yes: 13 • No: 0

House vote • 6/23/2026

Other

Yes: 13 • No: 0

House vote • 6/23/2026

Final Reading

Yes: 13 • No: 0

House vote • 6/9/2026

Other

Yes: 9 • No: 4

House vote • 6/9/2026

Other

Yes: 13 • No: 0

House vote • 6/9/2026

First Reading

Yes: 13 • No: 0

House vote • 6/9/2026

Other

Yes: 13 • No: 0

Actions Timeline

  1. Law Number L26-0179 Effective from Sep 15, 2026

    9/15/2026House

  2. Act A26-0379 Published in DC Register Vol 73 and Page 011124

    8/7/2026House

  3. Transmitted to Congress

    8/3/2026House

  4. Enacted without Mayor's Signature with Act Number A26-0379

    7/30/2026House

  5. Returned from Mayor

    7/28/2026House

  6. Transmitted to Mayor, Response Due on Jul 29, 2026

    7/15/2026House

  7. Legislative Meeting

    6/23/2026House

  8. Legislative Meeting

    6/9/2026House

  9. Committee of the Whole

    6/9/2026House

  10. Committee Mark-up of B26-0659 by the Committee of the Whole

    6/9/2026House

  11. Committee Mark-up of B26-0659 by the Committee of the Whole

    5/22/2026House

  12. Committee Mark-up of B26-0659 by the Transportation and the Environment Committee

    5/22/2026House

  13. Committee Mark-up of B26-0659 by the Judiciary and Public Safety Committee

    5/22/2026House

  14. Committee Mark-up of B26-0659 by the Executive Administration and Labor Committee

    5/21/2026House

  15. Committee Mark-up of B26-0659 by the Human Services Committee

    5/21/2026House

  16. Committee Mark-up of B26-0659 by the Public Works and Operations Committee

    5/21/2026House

  17. Committee Mark-up of B26-0659 by the Youth Affairs Committee

    5/20/2026House

  18. Committee Mark-up of B26-0659 by the Housing Committee

    5/20/2026House

  19. Committee Mark-up of B26-0659 by the Health Committee

    5/20/2026House

  20. Committee Mark-up of B26-0659 by the Committee of the Whole, Subcommittee on Local Business Development

    5/18/2026House

  21. Committee Mark-up of B26-0659 by the Facilities Committee

    5/18/2026House

  22. Committee Mark-up of B26-0659 by the Committee of the Whole, Subcommittee on Local Business Development

    5/18/2026House

  23. Public Hearing on B26-0659

    5/13/2026House

  24. Notice of Public Hearing Published in the District of Columbia Register

    4/24/2026House

  25. Notice of Intent to Act on B26-0659 Published in the District of Columbia Register

    4/24/2026House

Bill Text

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