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B 26-0263 Legislature · 26th Council Period (2025-2026)

Fiscal Year 2025 Revised Local Budget Emergency Act of 2025

This bill is a budget proposal addressing a $1 billion revenue shortfall caused by federal job losses (40,000 jobs) over four years. It directly affects DC residents by reallocating funds to key priorities: $30 million for police hiring and crime technology, $2.8 billion for schools, and $160 million for affordable housing. Key mechanisms include reducing the Universal Paid Leave tax from 0.75% to 0.72%, funding tech industry incentives ($2.2 million for DC Tech Ecosystem Fund), and pausing certain building regulations to spur economic growth. The proposal aims to "rightsizing" spending to match revenue growth while maintaining core services like public safety and education. It is part of the Mayor’s FY 2026 budget submission, not a finalized law.
Issues: ✓ Budget & TaxesSupports Budget & TaxesReduces Universal Paid Leave tax (0.75%→0.72%) and allocates $2.8B to schools, $30M for police, $160M for housing - directly funding public services and providing tax relief.95% confidence ✓ Criminal JusticeSupports Criminal JusticeAllocates $30M for police hiring and crime technology, directly funding law enforcement within criminal justice framework.95% confidence ✓ EducationSupports EducationBill allocates $2.8 billion directly to schools from budget reallocation, explicitly increasing education funding as a key priority.95% confidence ✓ HousingSupports Housing$160M explicitly allocated to affordable housing directly funds housing initiatives per bill summary.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentReduces Universal Paid Leave tax rate (0.75% → 0.72%), supporting worker benefits under labor/employment policy75% confidence ✓ TechnologySupports TechnologyAllocates $2.2M to DC Tech Ecosystem Fund for tech industry incentives, directly advancing technology development and innovation in the district.92% confidence
Sub-Topics: State Budget Revenue Policing Paid Leave Affordable Housing
Bill status signed all 4 stages cleared
Introduction
May 2025
Committee Review
Jun 2025
Council Passage
Jul 2025
Signed into Law
Aug 2025
Introduced May 27, 2025 Signed Aug 18, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduction → Enrollment · 4 edits
MODERATE
The document is a legislative diff showing the transition from a budget letter to an enrolled act. The original letter contained budget proposals and policy details for FY 2026, while the enrolled act is a specific emergency budget adjustment for FY 2025. The substantive change is that the document shifted from a forward-looking budget proposal to an enacted law adjusting existing FY 2025 allocations due to federal funding changes.
Scope change
The bill's scope changed from a comprehensive FY 2026 budget proposal to a targeted FY 2025 emergency budget adjustment act, narrowing the focus to specific fiscal year allocations rather than a full budget plan.
SCOPE

Removed the FY 2026 budget letter and accompanying policy proposals, including growth agenda items, spending rightsizing details, and shared priority investments that were part of the original submission.

FISCAL

Added specific FY 2025 budget adjustments totaling $236,858,618 in decreases across multiple agency appropriations, including rescissions from local funds, dedicated taxes, Medicaid payments, and enterprise funds.

Added detailed allocation breakdowns showing how budget decreases are distributed across 27 specific offices and departments under Governmental Direction and Support, Economic Development and Regulation, and Public Safety and Justice categories.

TIMELINE

Changed the effective timeframe from a forward-looking FY 2026 budget proposal to an immediate FY 2025 emergency adjustment effective September 18, 2024, under the Full-Year Continuing Appropriations and Extensions Act of 2025.

Floor votes · Council Jul 28, 2025

How they voted

12–0
Passed
Total votes 12
Jul 28, 2025
D Democratic10
10 Yea
100% Yea
I Independent2
2 Yea
100% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
14
Key actions
1
Committee
1
Amendments
1
Jul 28, 2025
Council · Passed
Council Vote: pass (12-0)
council
Jul 28, 2025
Introduced
Amendment (Nadeau)
legislature
Jun 3, 2025
Committee
Retained by the Council with comments from the Committee of the Whole
legislature
May 27, 2025
Introduced
B26-0263 Introduced by Chairman Mendelson at Office of the Secretary
legislature
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Phil Mendelson
Phil Mendelson
DDemocratic
DC
Chairman