Proposed Budget - Fiscal Year 2026
On May 27, District of Columbia Mayor Muriel Bower released a $21.8 billion total gross funds budget for fiscal 2026, an increase of $615.2 million, or 2.9 percent, from the fiscal 2025 approved budget. General fund expenditures and transfers total $13.5 billion in fiscal 2026, an increase of 2.2 percent over approved fiscal 2025 and the Local Funds portion of the budget totals $11.9 billion, an increase of 2.6 percent over fiscal 2025. Estimated general fund revenues for fiscal 2026 are projected at $12.22 billion in fiscal 2026, a decrease of 0.4 percent from the revised fiscal 2025 estimate of $12.27 billion while the Local Funds portion is projected at $10.63 billion in fiscal 2026, a decrease of 0.5 percent from the revised fiscal 2025 estimate of $10.68 billion. In the Local Funds component of the budget, the operating margin after reservations is $500,000. Total cash reserves in the proposed fiscal 2026 budget are $2.3 billion.
Proposed Budget Highlights
The mayor’s budget, Grow DC, is a proactive growth agenda to generate new economic activity, create new jobs for DC residents, and increase revenue to support city services and programs. As DC plans for impacts from federal government reductions and job losses, the proposed budget is focused on growing the economy, rightsizing spending, and investing in shared priorities.
Education
- Increases funding for public schools and public charter schools and provides pay raises for public school and public charter school teachers.
- Provides support to continue high impact tutoring.
- Allocates funds to replace and modernize technology equipment and upgrade IT infrastructure at public schools.
- Ensures full funding for core child care programs including the child care subsidy, pay equity fund, and Pre-K enhancement and expansion program.
Public Safety
- Increases funding to hire additional metropolitan police officers and purchase crime fighting technology and equipment.
- Provides additional resources for critical firefighting gear.
- Allocates funds to purchase mobile cameras and license plate readers to help increase safety for major events including the upcoming America 250 Celebration.
Housing and Economic Development
- Funds the Housing Production Trust Fund in fiscal 2026.
- Provides funds to continue the Heirs Property program, Home Purchase Assistance Program, and support DC Housing Authority public housing improvements.
- Includes funding for assistance and repairs at three theatres.
- Allocates funds to support small area planning in city neighborhoods.
- Provides support to accelerate DC’s position as a tech hub, including revival of the Qualified High Technology Companies tax incentive and creation of the DC Technology Ecosystem Fund.
Health and Human Services
- Increases funding to support increased costs for Medicaid services, including increased utilization for services for individuals with developmental disabilities, increased reimbursement rates for dentists, and to cover sickle cell anemia coverage and treatment.
- Proposes changes to eligibility, benefits and provider rates to lessen the forecasted Medicaid increase, including shifting certain childless adults and adult caregivers to a new health plan run by the DC Health Benefits Exchange, long-term care and Home and Community Based reform, and pausing inflationary adjustments for provider rates.
- Allocates additional funds to increase Safe at Home and serve 795 seniors on the waitlist, while expanding the Home Delivered Meals program to approximately 150 seniors.
- Increases support to continuum of care for homeless services including 24/7 access to shelter.
- Provides funding to create pathways for families to exit the Family Re-Housing and Stabilization Program.
Other Priorities:
- Removes barriers to business growth including reform of zoning procedures to speed up reviews of new development projects and no sales tax increase in fiscal 2026.
- Increases funding for public transportation to support bus and rail service.
- Provides funds to maintain roads, sidewalks, and alleys in a state of good repair.
- Increases new office-to-housing conversions by expanding the Housing in Downtown program to two additional neighborhoods.
- Provides funding for RFK Stadium infrastructure.
- Allocates funds to enhance cybersecurity in government operations.