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B 26-0661

Fiscal Year 2027 Budget Support Act of 2026

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

The bill expands incentives and programs to stimulate housing, economic development, and urban renewal, including new tax abatements and targeted funding aimed at increasing afford

Final Reading
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WeVote Research Nonpartisan
Bill Summary · B 26-0661

Summary of Bill B 26-0661 (Session 26) – Fiscal Year 2027 Budget Support Act of 2026

Note: This summary focuses on the substantive provisions and potential impacts, organized by major policy areas and timelines as reflected in the bill text.

1) Overall purpose and intent

  • The bill enacts and amends provisions to support the District of Columbia’s Fiscal Year 2027 budget and financial plan (Grow DC), addressing revenue opportunities, economic development, public services, and employee-related policies.
  • It aims to align agency operations with a transitioning economy, expand housing and neighborhood investment, bolster public safety and education, and refine program governance and oversight related to budget implementation.

2) Key provisions and changes

A. Government direction and support

  • Telework Policy (Subtitle A)

    • Authorizes the Mayor to establish a city-wide telework policy for all agencies.
    • Prohibits agencies from adopting independent telework policies without Mayor approval.
    • Requires agencies to report telework usage to the Mayor and authorizes audits for compliance.
    • Bars collective bargaining agreements from mandating telework policies.
    • Defines terms: routine telework, situational telework, and telework, and empowers the Mayor to issue implementing rules.

  • Limitation on liability (Subtitle B)

    • Sets caps on liability for unliquidated damages against the District:
    • General cap: $500,000 per incident (regardless of number of claimants).
    • Cap for intentional wrongful acts: $1,000,000 per incident (aggregate).
    • Non-econ damages require substantial medical expenses (>$10,000) unless injury is permanent/disfigurement or intentional act.
    • Applies to claims filed on or after Oct 1, 2026.

  • District Employee Paid Parental, Family, and Medical Leave (Subtitle C)

    • Redefines “eligible employee” to include most District government employees (180 days of service; excludes some temporary/intermittent staff).
    • Paid leave entitlement reduced from 8 to 2 workweeks (amendment to §1204a).
    • Introduces detailed notice and scheduling requirements for paid leave, including:
    • Foreseeable notice (10 days) and unforeseeable notice timelines.
    • Emergency notification within 48 hours.
    • Good-faith negotiations for dates/hours if operations could be affected.
    • Adds continuation of service requirement (12 weeks) after use of paid parental/family/medical leave and consequences for violation (indebtedness for salary paid during leave).

  • Lobbyist late filing penalty (Subtitle D)

    • Extends the maximum late filing penalty period for lobbyists from 60 days to up to 60 days (clarification/typo correction).

  • Mayoral transition (Subtitle E)

    • Establishes transition provisions to ensure continuity when a new Mayor takes office.
    • Allows space, equipment, and funds for Mayor-elect transition staff; caps aggregate payments at $300,000.
    • Requires a transition activity report to the Council by March 31, 2027.

  • Fair Elections program (Subtitle F)

    • Adds/clarifies personal liability for participating candidates in the Fair Elections program if certain violations occur.
    • Provides a mechanism for reducing personal liability for “good cause” terminations or hardship scenarios.

B. Economic development and regulation

  • Downtown building conversions (Subtitle A, Title II)

    • Creates/adjusts tax-related incentives and rules to support conversion projects in downtown DC, with emphasis on inclusionary zoning, First Source requirements, local hiring, and special merit considerations.
    • Introduces a “Central Washington activation projects” temporary tax abatement and First Source exemption for certain properties.

  • Rent payment reporting program (Subtitle B)

    • Establishes a Rent Payment Reporting Program allowing rental providers to report tenant rent payments to credit bureaus, upon tenant request.
    • Providers receiving District financial support may be required to participate or share tenant payment data.
    • Grants may be issued to help cover setup/setup and ongoing reporting costs; waives some grant requirements.

  • Workforce housing opportunity tax abatement (Subtitle C)

    • Introduces a new tax abatement (47-860a) for eligible workforce housing projects.
    • Requirements include: minimum 40 housing units; 20% affordable to 80% or less MFI and 20% affordable to 80–100% MFI; covenants and First Source commitments; competitive certification; and a development timeline.
    • Abatement limits: up to $4M in 2029, $5M in 2030, $6M in 2031, then 105% annual growth thereafter.
    • Duration: up to 10 tax years, extendable to 20 years in certain circumstances; ineligible if not progressing after 5 years; Mayor’s certification and oversight provisions.

  • Development of former federal properties (Subtitle D)

    • Establishes tax abatements for development of certain former federal properties under specified ownership and development arrangements.
    • Similar conditions for First Source participation, CBE, and affordability (minimum 10% of units at 60% or less MFI; 10% at 80% or less MFI).
    • Abatement duration up to 20 tax years; Mayor’s discretion to extend up to 5 years increments.

  • WMATA joint development properties (Subtitle E)

    • Similar abatement framework for WMATA joint development sites near eligible Metro development sites with First Source and 10% affordability requirements.

  • Federal properties tax fund (Subtitle F)

    • Creates a Federal Properties Tax Fund to manage revenues from certain real property taxes and deploy funds for infrastructure, debt service, and tax abatements related to covered former federal properties.
    • Funds do not revert to the General Fund at year-end.

  • Supermarket tax incentive (Subtitle G)

    • Extends/adjusts exemptions for qualified supermarkets, including duration, conditions on occupancy, and extension provisions.
    • Additional provisions for hardship extensions and criteria to evaluate extensions.

  • Food policy functions (Subtitle H) and vacant building policies (Subtitle I, J)

    • Repeal/modify certain Food Policy Council structures and refine vacant building registration/fee regime.

  • Building code fines inflation adjustment (Subtitle J)

    • Updates enforcement fines inflation indexing provisions for housing/building infractions.

C. Public safety and justice

  • Public safety and law enforcement provisions (Title III)
    • Various sub-areas outline training, cadet programs, background checks, and Homeland Security Commission alterations; specific text not fully enumerated in the excerpt.

D. Public education and human services

  • Education funding and programs (Title IV)

    • Reaffirms uniform per-student funding, supports advanced technical centers, and expands school food services funding.
    • Provisions touch on paid family leave for public education staff and potentially other school-related funding mechanisms.

  • Human support services (Title V)

    • Includes rapid re-housing, AIDS Drug Assistance Fund, and other social service program adjustments.

E. Operations and infrastructure

  • Utilities, energy, and environment (Title VI)
    • Numerous subtitles cover funding, incentives, and governance related to energy efficiency, EV charging, district energy, stormwater, hazardous waste, pesticide registration, sustainable materials, and related funds.
  • Finance and revenue (Title VII)
    • Includes tax policy adjustments, including a delay on a sales tax increase, hotel and rental car tax provisions, and various tax-related fund adjustments.
    • Establishes a Pay-As-You-Go (PAYGO) capital requirement and other fiscal governance measures.

3) Who or what would be affected

  • District government agencies and employees:

    • Telework policy implementation and compliance audits.
    • Paid parental, family, and medical leave provisions, including schedule/notice requirements and continuation-of-service obligations.
    • Liability framework potentially affecting agency exposure to unliquidated damages.

  • District residents and tenants:

    • Rent payment reporting program could impact tenant credit reporting and access to credit history.
    • Expanded affordable housing requirements and tax abatements for housing projects (workforce housing, former federal properties, WMATA sites) aimed at increasing affordable units.

  • Developers, builders, and contractors:

    • Eligibility criteria and compliance requirements for new tax abatements and development incentives (First Source, CBE, affordable housing thresholds).
    • Deadlines, reporting, and performance milestones tied to abatements.

  • Local businesses and communities:

    • Enhanced funding and incentives for downtown conversions, supermarket development, and neighborhood revitalization.
    • Federal property and WMATA-related development could reallocate sites toward mixed-use and housing with affordability components.

4) Procedural and timeline aspects

  • Effective date and applicability:
    • Several provisions specify effective dates around 2026–2028, with abatements and programs phasing in through 2028 and beyond.
    • Telework policy and liability caps apply to post-October 1, 2026, for certain liability provisions.
  • Reporting and oversight:
    • Transition and fund provisions require annual/periodic reporting to the Council (e.g., transition fund reporting by March 31, 2027; ongoing governance rules via the Mayor’s APA authority).
  • Budget integration:
    • The act accompanies the FY 2027 Local Budget Act and related budget request acts, integrating with the District’s Grow DC plan and anticipated revenue streams.

If you’d like, I canbreak down a specific subtitle (e.g., Tax Abatement sections or the Rent Reporting provisions) into a more granular point-by-point impact analysis.

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

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