The road leading to a budget settlement between the federal government and Washington D.C. has taken an unexpected turn as the city's financial team plans to tap a funding boost by way of a 2009 law that allows the city to raise its budget by 6% in years of increased revenues.
"We need the Congress to act," said Mayor Muriel Bowser during a press event on Monday.
"What we're doing is a stop gap. It doesn't address the issue. It leaves hundreds of millions of dollars of money that we have in the bank that cannot be used on critical service for the residents of the District of Columbia."
The mayor notified the chairs and the ranking members of the House and Senate Appropriations Committees via a letter on Monday that invoking the law is a direct result of what's not happening in the House of Representatives.
Per the letter, "This action is necessitated by the removal of standard language in the Full-Year Continuing Appropriations and Extensions Act, 2025, which would have permitted the District to expend local, budgeted revenues at the already approved Fiscal Year 2025 amounts."
The continuing resolution that was passed by the House in March forces the city to adhere to its 2024 budget, as opposed to the 2025 budget, resulting in a $1.1 billion shortage.
The Senate passed a bill that makes the money available, President Trump voiced support, but the bill still needs to pass in the House whose members have left town until April 28.
The 2009 law can be put into play because the city's revenues were higher in 2025 than 2024 which allows the mayor to draft a supplemental budget which includes a 6% boost. The $679 million raise still leaves a $410 million shortage.
Spokespeople for the mayor's office indicate that everything is on the table for closing the remaining gap including cuts to programs, furloughs, and reductions in the workforce.
Washington is required by law to submit balanced budgets in four-year cycles, a process that has now been derailed by the congressional oversight the city is subject to.
The mayor was supposed to submit her 2026 budget to the City Council on April 2 but according to the mayor's office the confusion over which numbers are being used for this year has delayed the process.
The budgets need to be approved by the politically independent Office of the Chief Financial Officer who has also been sidelined by the unfolding events.
According to the OCFO, "We are closely monitoring events in Congress and will continue working with the mayor and council to ensure fiscal year 2025 spending complies with federal law. The timing for submitting the budget to the council is a decision for the mayor and council."
The federal government is the largest employer in the greater Washington, D.C. area which has helped the city maintain high credit ratings with all three of the major rating agencies.
As the Trump administration focuses on shrinking and decentralizing multiple agencies based in Washington, Fitch Ratings has put the city on a negative watch and Moody's Ratings is considering a possible
