District of ColumbiaB26-0660Council Period 26 (2025-2026)HouseWALLET

Fiscal Year 2027 Local Budget Emergency Act of 2026

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Bill Overview

Analyzed Economic Effects

49 provisions identified: 45 benefits, 2 costs, 2 mixed.

Charter schools get funding and advances

Charter schools receive about $1.464 billion in local funding, paid quarterly; the first payment is due within 15 days of the fiscal year's start. Of available funds, $230,000 goes to the Chief Financial Officer's office, and charter-school oversight receives about $16.809 million. Allocations not paid to operating schools through the per-student formula remain available for public education through September 30, 2027. On July 1, 2027, charter schools receive 30% of their adopted 2028 local funding in advance. The advance is 45% for charter school agencies that first opened after December 31, 2026, and counts toward final 2028 funding.

Public schools get funding and advances

District public schools receive about $1.509 billion, including a requested $17.5 million federal school-improvement payment. That federal amount adjusts to what Congress provides for fiscal year 2027. On July 1, 2027, schools receive an advance equal to 10% of their adopted 2028 local funding. The advance counts toward final 2028 funding, rather than adding money. Listed education special funds remain available through September 30, 2027; some qualify only for 2027 deposits. The Chancellor's specified reception and representation expenses are limited to $10,600 in local funds.

Funding keeps District government operations running

The law provides about $1.261 billion for District government direction and support through September 30, 2027. Funding includes about $1.026 billion in local money, $42.939 million in federal grants, and $190.961 million in other funds. It also includes $220,000 in dedicated taxes and $918,336 in private donations. These funds support listed agencies and offices, not direct household payments. The emergency law itself lasts no more than 90 days.

District funds utilities and benefit accounts

District enterprise accounts receive about $2.337 billion: $2.204 billion from enterprise and other funds, plus $133.061 million in dedicated taxes. Allocations include $844.105 million for water and sewer, $123.972 million for the Washington Aqueduct, and $3.75 million for green finance. Benefit-related allocations include $216.836 million for unemployment insurance, $184.073 million for paid leave, $47.441 million for the health insurance exchange, $42.116 million for the Retirement Board, and $8.766 million for retiree-benefit trust administration. Housing finance receives $19.880 million, the Housing Production Trust Fund $62.612 million, and the District university $206.441 million. The package also allocates $37.845 million for ballpark preservation, $222.201 million for lottery and gaming, $268.322 million for convention and sports activities, $48.040 million for tax-increment financing, and $694,425 for PILOT financing repayment. Water and sewer construction has a separate stated authorization of $8.913495 billion for listed water, sewer, stormwater, aqueduct, facility, and equipment projects. Its requested $8 million federal payment adjusts to Congress's 2027 appropriation. Transfer authority can rise to pass through dedicated revenue above budget; after notice to the Mayor, unexpected lottery revenue can fund related prizes, commissions, gaming fees, and General Fund transfers.

Capital projects grow; transportation funds canceled

The law adds a net $3.507739 billion for District capital construction and cancels $14.104 million in local transportation funds. Funding sources are $2.584694 billion local, $803.131 million federal Highway Trust Fund, $101.876 million District Highway Trust Fund, and $32.144 million federal. Project money remains available until spent and can increase through transfers from appropriated Pay-As-You-Go Capital funds. Money can be used only for its intended projects and purposes.

District budget funds services with limits

The law authorizes about $21.876 billion for District operating costs in fiscal year 2027, through September 30, 2027. Operating appropriations cannot exceed that year's District revenues. Sources include $12.242 billion in local funds, $782.455 million in dedicated taxes, $1.355 billion in federal grants, and $4.188 billion in Medicaid payments. Unspent 2026 balances in listed non-lapsing funds carry into 2027, on top of new funding. Listed operations and infrastructure funds remain available through September 30, 2027; some qualify only for 2027 deposits. This emergency law lasts no longer than 90 days, separate from the stated spending periods.

Funding for corrections and youth rehabilitation

The law provides about $230.4 million for Corrections and $102.5 million in local funds for Youth Rehabilitation Services. Fiscal year 2027 deposits in three corrections funds remain available through September 30, 2027. These are the Correction Reimbursement-Juveniles, Department of Corrections Reimbursement, and Inmate Welfare funds. The funding supports agency operations without setting household payments or new benefit eligibility.

Funding for District emergency response services

For fiscal year 2027, the law provides about $402.6 million for fire and emergency medical services. It also provides about $101 million for homeland security, $60.2 million for emergency communications, and $23.8 million for the National Guard. The Guard's federal funding adjusts to Congress's actual appropriation. The Mayor must reimburse Guard emergency services requested by the Mayor and performed in militia status. The Mayor and Guard commander must jointly certify the amount due; necessary reimbursement money is available in advance. Through September 30, 2027, agencies can spend fiscal year 2027 deposits in the EMS Reform and Public Services Telecommunications funds. Deposits from any year in the Emergency and Non-Emergency Number Telephone Calling Systems Fund also remain available through that date.

Funding for District police and investigations

The law provides about $687.9 million for police, $28.9 million for forensic sciences, and $16.3 million for medical examiner services. Fiscal year 2027 deposits in police asset-forfeiture and general-purpose funds remain available through September 30, 2027. The same deadline applies to fiscal year 2027 deposits in the Medical Examiner Pathology and Toxicology Fund. Forensic Sciences Laboratory Fund deposits remain available through that date, regardless of deposit year. These appropriations fund agency operations, not household payments.

Funding for police and firefighter pensions

The law provides $143.966 million in local funds for the District's Police Officers' and Firefighters' Retirement System. This funding supports the pension system. It does not change individual pension amounts, eligibility, or payment rules.

Funding for victims and neighborhood safety

The law provides about $109.8 million for Victim Services and Justice Grants and $22.8 million for Neighborhood Safety and Engagement. Crime Victims Assistance and Neighborhood Safety and Engagement fund deposits from any year remain available through September 30, 2027. Fiscal year 2027 deposits in the Community-Based Violence Reduction and Private Security Camera Incentive funds have the same deadline. Neighborhood safety spending must follow the purposes set by the 2016 Neighborhood Engagement Achieves Results law. These provisions do not set individual benefit amounts or eligibility rules.

District restores reserves from excess revenue

The first $150 million in qualifying excess 2026 local funds restores the Fiscal Stabilization Reserve after earlier transfers. Excess is measured against the February 27, 2026 revenue estimate, specified budget-support revenue, and authorized transfers. June, September, or December 2026 revenue certifications determine the amounts. If 2026 excess falls short, certified 2027 revenue above appropriated resources fills the gap, up to $150 million total. Cash Flow Reserve and Fiscal Stabilization Reserve deposits from any fiscal year remain available through September 30, 2027.

Funding for District development and redevelopment

The law provides about $546.7 million for economic development and regulation through September 30, 2027. Sources include about $358 million local, $49.8 million dedicated taxes, $42.2 million federal grants, $58.2 million other funds, and $38.5 million other federal funds. The Deputy Mayor for Planning and Economic Development receives about $44.4 million within this funding. Deposits from any year remain spendable through September 30, 2027, in the Economic Development Special Account and Industrial Revenue Bond Account. The same rule covers the Soccer Stadium Financing, Vitality, and Walter Reed Reinvestment funds. For the St. Elizabeths East Campus Redevelopment and Walter Reed Redevelopment funds, only fiscal year 2027 deposits qualify.

Housing authority and housing funds continue

The District provides about $213.820 million in local funds to the Housing Authority. Housing Production Trust Fund deposits from any fiscal year remain available through September 30, 2027. These provisions fund housing programs but do not set household payments or new eligibility rules.

District funds workforce programs for job seekers

The law provides $105.38475 million in local money to the District’s Workforce Investment Account. This funds the account and its workforce programs. The provision does not set participant eligibility rules or individual assistance amounts.

District university keeps funds and advances

The University of the District of Columbia's roughly $206.441 million appropriation remains available through September 30, 2027, without returning to the General Fund. Higher Education Incentive Program deposits from any fiscal year also remain available through that date. On July 1, 2027, the university receives an advance equal to 10% of its adopted 2028 local funding. That advance counts toward final 2028 funding and does not create a student payment.

Employment services keep funding for workers

Employment Services receives about $183.605 million and can provide participants food, non-alcoholic drinks, and incentives as District or federal law allows. Employees can also receive food and non-alcoholic drinks as those laws allow. Deposits from any fiscal year remain available through September 30, 2027, in the Reed Act, unemployment and workforce administration, unemployment interest, unemployment special expense, paid-leave administration, and both workers' compensation funds. Apprenticeship Fees, Jobs Trust, and Wage Theft Prevention funds qualify only for 2027 deposits. These spending rules do not change household benefit amounts or eligibility.

Nonresident university students face subsidy limits

For the fiscal year ending September 30, 2027, District university funds cannot subsidize nonresident students unless its Board adopts qualifying tuition rates. Nonresident tuition must be at least as high as rates at comparable public colleges in the metropolitan area. The law sets no specific tuition amount.

District funds refunds and legal payments

The District provides about $25.344 million in local funds for refunds, legal settlements, and judgments against its government. Additional District money can be used as necessary to make those payments. The law does not set any recipient's payment amount.

Food and lodging for program travelers

Through September 30, 2027, the Mayor can use appropriated local and other funds for eligible program travelers' food and lodging. Participants must travel overnight outside the District as part of a District government program. Their parents or guardians can also receive this help. Costs cannot exceed the applicable General Services Administration daily travel rates.

Paid leave funds stay available for workers

The District keeps Universal Paid Leave Fund money available through September 30, 2027, regardless of the budget year deposited. This supports the paid leave program. The provision does not change who qualifies or set individual benefit amounts.

Housing assistance funds stay available

Reverse Mortgage Foreclosure Prevention and Public Housing Credit-Building Pilot funds remain available through September 30, 2027, regardless of budget year. Deposits made during 2027 into the housing department's Unified Fund and Home Purchase Assistance Fund also remain available through that date. The law does not change who qualifies or set household assistance amounts.

Adult learners keep transit subsidy funding

Funds budgeted for the adult learner transit subsidy program remain available through September 30, 2027. This applies regardless of the year the money was budgeted. The law does not change eligibility or state a subsidy amount.

Emergency workers can receive meals

The Mayor can provide food and drinks to District employees deployed in response to or during a declared snow or other emergency. Costs cannot exceed $30 per employee per day. This authority runs through September 30, 2027.

Small business funds stay available longer

The law provides $24.844774 million to the District’s Department of Small and Local Business Development. Five funds remain available through September 30, 2027, regardless of the budget year deposited. They cover Art All Night, Small Business Capital Access, Small Business Licensing Fee Reimbursement Relief, and Streetscape Business Development Relief. The fifth is the Ward 7 and Ward 8 Entrepreneur Grant Fund. These provisions do not set individual eligibility rules or award amounts.

Funding for civil legal assistance programs

The law makes about $31.8 million available for a grant to the District of Columbia Bar Foundation. The grant supports the Access to Justice Initiative. It covers the Grants Program, Poverty Lawyer Loan Repayment Assistance Program, and Civil Legal Counsel Projects Program. Funds remain available regardless of fiscal year through September 30, 2027. The provision does not set individual payments or eligibility rules.

Funding for District parks and recreation

The law provides about $78 million for the Department of Parks and Recreation. Fiscal year 2027 deposits in the Parks and Recreation Fund remain available through September 30, 2027. Fund spending is limited to the purposes set by the Recreation Act of 1994. The appropriation supports recreation services, not individual household payments.

Funding for hearings and human rights

The law provides about $13.5 million for Administrative Hearings, including $300,000 from Medicaid payments. It also provides about $9.7 million for the Office of Human Rights. This money funds office operations. These appropriations do not create new Medicaid benefits, change Medicaid eligibility, or specify changes to individual rights.

Funding for judicial commissions and oversight

The law provides about $1.244 million for the Commission on Judicial Disabilities and Tenure, including $598,000 in requested federal payments. It provides $437,355 for the Judicial Nomination Commission, including $350,000 in requested federal payments. Each commission's federal payment adjusts up or down to match Congress's fiscal year 2027 appropriation. The Sentencing Commission also receives about $1.740 million in local funds. These provisions fund commission operations rather than household benefits.

Funding for justice coordination and accountability

The law provides about $14.2 million in local funds for the Deputy Mayor for Public Safety and Justice. Local funding also includes about $3.295 million for Police Complaints and $1.141 million for the Corrections Information Council. The Criminal Justice Coordinating Council receives about $4.858 million, including $2.750 million in requested federal payments. That federal portion adjusts up or down to match Congress's fiscal year 2027 appropriation. These provisions fund leadership, coordination, and oversight without changing individual rights or benefit eligibility.

Home security funding for Council members

The law makes up to $390,000 of the Council's budget available for security checks and upgrades at Councilmembers' permanent homes. This authority runs through September 30, 2027. Assessment spending is capped at $260,000 per residence, and upgrades are capped at $10,000 per Councilmember. Spending must follow a policy issued by the Council Secretary. This is not a general household security benefit.

Library funding stays available for services

The law provides about $87 million for the District's Public Library. Up to $8,500 in local funds covers the Chief Librarian's official reception, representation, and related legally allowed expenses. Deposits from any year in five library funds remain available until spent. These are Books From Birth, Copies and Printing, DCPL Revenue-Generating Activities, E-Rate Reimbursement, and Library Collections. By February 2, 2027, the Chief Financial Officer must add each fund's remaining fiscal year 2026 resources to its spending authority.

Renewable energy grants get longer spending time

The District can commit available Renewable Energy Development Fund balances to grant awards during fiscal year 2027. Money committed under those awards remains available for spending through September 30, 2030. The provision does not name recipients, set grant amounts, or provide a direct household payment.

Human support funds stay available longer

District agencies can spend deposits in specified human-support special funds through September 30, 2027. Some funds can use deposits from any fiscal year. Others can use only fiscal year 2027 deposits. This preserves agency spending authority without setting funding amounts or changing individual benefits.

Tenant advocacy and rental oversight funded

The Office of the Tenant Advocate receives about $4.725 million, and the Rental Housing Commission receives about $1.220 million. Rental Unit Fee Fund deposits made during 2027 remain available through September 30, 2027. These provisions support tenant advocacy and rental oversight without changing rents, tenant rights, or fee rates.

Special education transportation gets early funding

On July 1, 2027, Special Education Transportation receives an advance equal to 10% of its adopted 2028 local funding. This counts toward final 2028 funding, rather than adding money. The agency can also fund incentives to reduce routes serving two or fewer students when necessary. The law does not set incentive amounts or recipients, or require route reductions.

Dedicated taxes fund District bond repayments

The District provides about $2.260 million from dedicated taxes to repay revenue bonds. This funds debt payments; it does not establish a new household tax or payment.

District can pay contract exit costs

The law allows available local funds to pay termination costs for qualifying multiyear infrastructure contracts entered during the fiscal year. Those projects must use the Public-Private Partnership Act of 2014. It also funds termination, transfer, or ownership-change costs for multiyear energy contracts or task orders entered during the fiscal year. Energy agreements must concern District building energy savings or on-site energy generation and distribution. The Chief Financial Officer must certify available funds; infrastructure payments can use contract-related or other available appropriations. Neither authority allows emergency or contingency cash reserves, and allocated money remains available until spent.

District development funds remain available

Business Improvement District transfers receive $43.23 million through September 30, 2027; transfer authority can rise to cover all dedicated revenue above budget. Deposits from any fiscal year remain available through that date in the Economic Development Special Account, Industrial Revenue Bond Account, Soccer Stadium Financing Fund, Vitality Fund, and Walter Reed Reinvestment Fund. St. Elizabeths East Campus Redevelopment and Walter Reed Redevelopment funds qualify only for 2027 deposits. The law does not specify amounts for those development funds or household payments.

District transportation agreements on park land

During fiscal year 2027, the District can make annual or multiyear transportation agreements with the National Park Service. Agreements must cover District transportation infrastructure and related features on National Park Service land within the District. They can cover planning, design, construction, maintenance, improvements, and operation. Spending is limited to funds appropriated and available for these purposes in each agreement year. The authority does not guarantee a project or provide a specific funding amount.

Excess revenue supports housing and jobs

After reserve restoration, the law adds up to $50 million when certified 2027 local revenue exceeds appropriated amounts. By October 1, 2026, money goes in order: $9 million to the Housing Authority, $3 million to Emergency Rental Assistance, $2 million to Credible Messengers, and $36 million to workforce investment. The Housing Authority money is held for use if the federal Emergency Housing Voucher program expires. June, September, or December 2026 certifications determine qualifying revenue. December excess is allocated by January 1, 2027, in the same order to recipients not yet fully funded.

Film and entertainment funds stay available

Film, Television and Entertainment Rebate Fund deposits from any fiscal year remain available through September 30, 2027. The cable, film, music, and entertainment office's Special Account also remains available through that date for 2027 deposits. The law does not state amounts or rebate terms.

Funding for arts and entertainment programs

The law provides about $47.6 million for the Commission on the Arts and Humanities. Available Arts and Humanities Fund balances can be committed to grant awards through September 30, 2030. Money committed to those awards remains available to spend through that date. The law also provides about $12.9 million for the Office of Cable Television, Film, Music, and Entertainment. It does not state individual grant amounts or direct household payments.

Recovered revenue pays qualifying vendor fees

The law provides local funds as needed to pay qualifying vendor fees, including legal fees, regardless of fiscal year. Fees must be obligated during the fiscal year under a District contract. The contract must base fees on revenue the vendor recovers from third parties and require payment from that recovered revenue. The provision does not set a total amount or change household liability.

Transit improvement money stays available

Existing and future deposits into the Washington-area transit system's Dedicated Financing Fund are appropriated for capital improvements. The money does not return to the District's General Fund and remains available until spent on those improvements. The law states no fixed amount or fare change.

Utility payments fund buried electric lines

Payments from Potomac Electric Power Company and related entities, plus interest, fund District transportation costs for burying electric distribution lines. Covered work includes design, construction, acquisition, and installation of equipment and infrastructure for company use and ownership. Existing and future receipts remain available until spent for those purposes and do not return to the General Fund. The law sets no total amount or customer bill change.

Funding for zoning and property appeals

The law provides about $4.210 million in local funds for the Office of Zoning. It also provides about $2.009 million for the Real Property Tax Appeals Commission. The money supports these offices. These appropriations do not change zoning rules, property tax rates, appeal eligibility, or household tax bills.

Planning and homeowner grant funds continue

The Office of Planning receives about $12.124 million. Its 2027 deposits into the Targeted Homeowner Grant Fund and two historic landmark and district protection funds remain available through September 30, 2027. Those protection funds are the Local and O-Type accounts. The law does not set homeowner grant amounts or eligibility.

Charter schools must pay audit costs

Each District public charter school must pay for its own annual financial audit. The law does not set the audit price. The requirement falls on schools, not directly on families.

Sponsors & Cosponsors

Cosponsors

Phil Mendelson
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 13 • No: 0

House vote • 6/23/2026

Final Reading