Enacted Budget – Fiscal Year 2026
On September 4, the fiscal year 2026 budget bill was signed by District of Columbia Mayor Muriel Bowser. The budget provides $22.03 billion in total funds, an increase of $813.7 million, or 3.8 percent, over the approved fiscal 2025 budget. The local funds portion of the budget is $12.04 billion, an increase of $408.5 million, or 3.5 percent, compared to fiscal 2025 and the general fund budget is $13.6 billion in fiscal 2026, an increase of 3.1 percent from fiscal 2025. General fund revenues in the budget are forecast at $12.2 billion, an increase of 4.6 percent compared to the approved fiscal 2025 budget. The local fund revenues, a component of the general fund, are estimated at $10.6 billion in fiscal 2026. The fiscal 2026 general fund ending balance is projected at $2.3 billion.
The fiscal 2026 budget is a balanced budget that maintains core government services with priorities including public safety, education, and advancing a growth agenda for the local economy. In public safety and justice, the budget funds a 13 percent pay increase for police officers, increases funding for the Metropolitan Police Department to hire more officers and purchase crime fighting technology and equipment, supports victims of crime, and ensures inmates receive proper health care services. The budget supports the public education system by increasing funds for public schools and public charter schools, supports the child care subsidy, funds the Early Childhood Educator Pay Equity Program, and provides opportunities for higher education, workforce training, and lifelong learning at the University of the District of Columbia. Prioritizing economic development includes funds for the Housing Production Trust Fund, funding to encourage the revitalization of commercial corridors and support of local businesses across the city, expanding office-to-housing conversions to two additional neighborhoods, and creating the D.C. Technology Ecosystem Fund to invest in business accelerators and incubators for start-up tech companies in the District. The budget also reduces the universal paid leave tax on employers from 0.75 percent to 0.72 percent while funding horizontal infrastructure to bring the Washington Commanders back to the District of Columbia. In human services the budget invests funds to support managed care and fee-for-service Medicaid programs, provides a variety of homeless services including transitional housing and supports, and allocates local funds to support the Temporary Assistance for Needy Families program. Other investments include stormwater management infrastructure, nuisance abatement services to address vacant and blighted properties, and financial support to the DC Green Bank.