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B 26-0662

Fiscal Year 2026 Revised Local Budget Emergency Act of 2026

26th Council Period (2025-2026) Introduced by Phil Mendelson

Shifts DC FY2026 spending by reallocating funds to boost public safety, education, housing and infrastructure while authorizing grants for a potential Children’s National campus.

Final Reading
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Bill Summary · B 26-0662

Summary of Bill B 26-0662: Fiscal Year 2026 Revised Local Budget Emergency Act of 2026

Purpose and Intent

  • This emergency act, introduced by Chairman Phil Mendelson on behalf of the Mayor, seeks to adjust the Fiscal Year 2026 Local Budget Act of 2025 to reflect changing revenue and cost conditions and to preserve a balanced budget for the fiscal year ending September 30, 2026.
  • It implements a series of approved reallocations, rescissions, and capital project adjustments to respond to evolving economic realities and to support critical public services in the District of Columbia.

Key Provisions and Changes

Sec. 2. Adjustments to the FY2026 Budget

  • Overall net change: The FY2026 budget authority is decreased by $119,152,710.13 (composed of rescissions and reallocations across funds).

  • Allocation of adjustments across functional areas:

    • Governmental Direction and Support: +$16,085,234.13 (local funds and special purpose revenue funds)
    • Economic Development and Regulation: +$8,525,522.87 (local funds)
    • Public Safety and Justice: +$15,074,620.00 (local funds)
    • Public Education System: +$32,488,203.00 (local funds)
    • Human Support Services: -$48,151,372.00 (local funds)
    • Operations and Infrastructure: +$33,475,799.07 (local funds)
    • Financing and Other: -$160,358,113.07 (net change; includes transfers and pay-as-you-go adjustments)
    • Enterprise and Other Funds: -$16,292,604.00 (net change)

  • Specific reallocation highlights:

    • Police and Public Safety: Metropolitan Police Department gains $18.70 million in local funds.
    • Public Education: State Superintendent of Education and DC Public Charter Schools funding increases; Library funding reduced slightly; University of the District of Columbia subsidy reduced.
    • Housing and Social Services: Adjustments across Housing Authority, Health Care, Department of Human Services, and related health/human services programs.
    • Infrastructure and Transportation: Notable increases to DC Public Works and transportation-related capital projects.

Sec. 3. Children's National Hospital Grant

  • Adds authorization for the Deputy Mayor for Planning and Economic Development to issue one or more grants to Children’s National Hospital for site assessments for a potential new campus. This is a new grant-making authority tied to the hospital campus project.

Sec. 4. Non-lapsing Account Transfers

  • Directs the Chief Financial Officer to transfer specified amounts from particular non-lapsing funds and dedicated accounts to the General Fund in FY2026, making them available for general purposes. The transfer list includes numerous funds (e.g., DCPS Rental Revenue, Disability Compensation, Parking Tax, Washington Metro WMATA-related funds, etc.).

Sec. 5. Capital Project Funding Adjustments

  • Provides a large table of capital project funding increases and decreases across numerous projects (libraries, DCPS modernization, roadway and streetscape projects, bridges, stormwater, transit hubs, etc.).
  • Objective: Align capital investments with current priorities and available funding, with targeted increases in selected projects and rescissions or reductions in others.

Sec. 6–7. Fiscal Impact Statement and Effective Date

  • The CFO confirms sufficiency of funds to implement the bill through FY2026 and into FY2027–2030.
  • Effective date: Takes effect after mayoral approval and remains in effect for up to 90 days (emergency act framework).

Who/What Would Be Affected

  • The District of Columbia’s General Fund, Special Purpose Revenue funds, dedicated tax funds, and enterprise funds would experience reallocation and rescission.
  • Public safety agencies (notably MPD and related justice entities), the Public Education System, housing programs, health and human services, and major capital projects would see changes in funding levels and project scopes.
  • Children’s National Hospital would gain new grant-making authority for site assessments related to a potential new campus.

Procedural and Timeline Aspects

  • Emergency act with a 90-day effective window, subject to mayoral approval or veto override.
  • Accompanies the FY2026 Revised Local Budget Emergency Act of 2026 and related budget acts and declarations.
  • Fiscal impact statement from the CFO indicates adequate funding to implement the bill through the stated horizon.

Compiled from official sources — confirm details with the bill’s official record.

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