DC Mayor Bowser releases 2026 budget

D.C. Mayor Muriel Bowser introduced the Grow DC budget for Fiscal Year 2026, aiming to boost economic activity, create jobs, and maintain city services. 

The plan responds to a projected $1 billion revenue shortfall over four years.

READ THE BUDGET: Fiscal Year 2026 Budget: Grow DC

"With this budget, we’re not waiting for change to happen – we’re making change happen. The Growth Agenda is about creating jobs for DC residents and generating the economic activity we need to keep DC a world-class city," said Mayor Bowser in a news release. "This budget acknowledges the challenges we are facing, but also includes bold, forward-thinking solutions to change our economic trajectory."

Bowser’s budget plan prioritizes education, transportation, and public services while avoiding tax increases and streamlining business regulations, her office says.

READ MORE: Bowser outlines 6% DC budget increase to Congress as 'stopgap' to billion dollar shortfall

The announcement came after a two-month push by D.C. leaders to resolve a budget issue stemming from Congress’s passage of a six-month spending gap bill in March. 

The House left out certain language normally included in the bill that effectively treated D.C. like a federal agency, restricting how much of its own money could be spent despite prior budget approval.

The budget proposal includes funding for a new Commanders stadium, affordable housing, and early childhood education. Bowser is also seeking to repeal Initiative 82, which eliminated the tipped minimum wage.

READ MORE: DC Mayor Bowser unveils growth agenda for DC budget

Key highlights of Mayor Bowser’s Fy26 Budget Proposal Economic Growth Initiatives:

Repealing Initiative 82 and establish sales tax holidays for restaurants

$171 million for Capital One Arena improvements

$1.1 million to support businesses in Chinatown and Gallery Place while the Capital One Arena redevelopment project is under construction  

$270 million to support pay raises for DCPS and DCPCS teachers

$30 million increase for  MPD to hire more officers, create a new horse mounted unit, and purchase crime fighting technology and equipment

$687,000 for a DPW swing shift crew to focus on collection of household trash/recycling, public litter cans, and bulk trash pickup

$22.3 million to purchase new  DPW heavy, medium, and light duty vehicles for trash/recycling collection and snow plowing

$100 million to fund the Housing Production Trust Fund (HPTF)  

$32 million for Fletcher Johnson infrastructure site improvements  

$166 million to complete the modernization of six DCPL libraries 

$97 million increase to support increased costs for Medicaid services

$18.9 million increase to support the continuum of care for homeless services including 24/7 access to shelter

$76 million in additional funds for  WMATA to support bus and rail service

$7.9 million for DCPS schools’ repairs and maintenance over the summer

No furloughs or layoffs

No facility closures

No changes to summer programming

The Source: Information in this article comes from The Associated Press, the Office of Mayor Muriel Bowser, and previous FOX 5 reporting.

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