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Washington Post
29-07-2025
- Business
- Washington Post
D.C. Council struggles with final vote on nearly $22 billion budget
The D.C. Council approved the city's nearly $22 billion budget Monday evening after taking up a flurry of last-minute amendments, including the controversial partial repeal of a ballot initiative that gradually phases out the tipped minimum wage and an unsuccessful proposal to fund a child tax credit through a tax hike on wealthy residents. Lawmakers also took an initial vote on major legislation intended to attract investment in affordable housing, quickening the eviction process while rolling back a law that gives tenants a seat at the negotiating table when their building goes up for sale. The council approved the budget after a significantly longer than usual, and fiscally challenging, budget season, which began when Congress slashed the city's 2025 budget. During the hours-long debate Monday, lawmakers were still trying through 11th-hour amendments to find ways to enhance programs including a child care subsidy, housing vouchers and health care for low-income Washingtonians and undocumented immigrants — efforts that largely were not successful. Council member Janeese Lewis George (D-Ward 4) said she could not 'in good conscience vote for a budget that does this much harm,' highlighting the partial repeal of Initiative 82's tipped minimum wage, the failed vote on tax hike to fund the child tax credit, cuts to a student mental health program, cuts to violence intervention services and 'serious holes in our social safety net for the city's most vulnerable residents.' 'If we are honest with ourselves, I think and hope we know we could have done more even in light of the challenging circumstances we faced,' Lewis George said. She and council member Zachary Parker (D-Ward 5) were the two no votes among the 12 members. Lawmakers, through amendments, tried to reverse cuts to programs serving the city's poorest residents — particularly as a disagreement with the city's chief financial officer led to $30 million in last-minute reductions to programs including affordable housing production, child care subsidies and emergency rental assistance. The council had added that $30 million during its initial budget vote in July, after Mendelson said the funds were available because chief financial officer Glen Lee had identified additional revenue. But Mendelson said Lee was revoking the funds to replenish the city's financial reserves and to address overspending by the mayor's agencies, which Mendelson said had expended about $300 million beyond what was budgeted for this fiscal year. 'I am moving this amendment under duress,' said Mendelson, who said he still believed the council had the right to spend the $30 million. Eric Balliet, a spokesman for the CFO's office, said in an email that Lee told council members that surpluses from agency savings are expected to be less than usual this year, and the excess revenue in June would be needed 'to address all FY 2025 expenses and obligations,' including replenishing and growing the reserves. Throughout the day, lawmakers wrestled with the uncomfortable realities of a tighter-than-usual budget year. In one case, programs serving low-income residents competed for money, as council members Brooke Pinto (D-Ward 2) and Parker unsuccessfully proposed cutting funds from legal services for the poor to pay for child care subsidies and a child tax credit for low- and moderate-income families. Parker also proposed to reverse some budget cuts with tax increases — one on capital gains taxes for wealthy residents, and another that would close what he called a 'loophole' that allows people to avoid paying taxes by passing income through businesses. Parker's office said the tax changes would generate an additional $15 million in revenue next year, which he wanted to direct to the child tax credit along with housing vouchers, oversight of the juvenile justice system, mobile psychiatric care for children and a commission to examine city taxes and expenditures. 'This is about fighting for working-class Washingtonians,' Parker said. 'We must raise revenue and protect the District's safety net.' His amendment was defeated by a vote of 7-5, with some lawmakers saying they did not want to revise the tax code in a piecemeal fashion and preferred to revisit adjustments in the fall, after the impact of significant tax changes at the federal level is more fully understood. The council also debated additional changes to how residents vote. Lawmakers narrowly defeated an amendment from Pinto that would have funded the part of Initiative 83 that would open up D.C.'s primary elections to independent voters. Council member Wendell Felder (D-Ward 7) unsuccessfully sought to delay the other half of that initiative — implementing ranked-choice voting — by first funding a needs assessment for the D.C. Board of Elections, allowing the new voting method to move forward. Toward the end of the debate, the council chambers erupted in protest, as Mendelson asked the chamber be cleared and about 20 protesters yelled at lawmakers from outside the chamber to decry the cuts to social services, chanting 'funding the rich, killing the poor' and 'shame on you, council.' Sophia Bos-Shadi, lead organizer with the Fair Budget Coalition, said the protest was necessary because council members opted against tax increases that would have restored cuts to housing and child care programs — and instead moved forward with a budget that would cause tens of thousands of D.C. residents, including many undocumented immigrants, to lose or see cuts to their health care coverage. 'This budget was so bad, it failed the people so completely,' said Bos-Shadi, 24, who added that she felt people had no choice but to interrupt the proceedings because they had spent months ahead of the budget vote going through regular channels in an effort to convince lawmakers to reverse the cuts. Law enforcement escorted the protesters from the building but did not make arrests. Before the budget discussion, the council advanced an amended version of Bowser's Rental Act — or the Rebalancing Expectations for Neighbors, Tenants and Landlords Act. The bill comes at a time when permits for new construction of multifamily housing have dramatically declined in D.C. in recent years — dropping about 80 percent. Lawmakers and affordable housing developers have described a serious problem with a ballooning backlog in eviction court and pandemic-era protections that lengthened the eviction process and contributed to a citywide problem with unpaid rent. 'The D.C. housing market is in crisis,' said housing committee chairman Robert C. White Jr. (D-At Large), noting that this was 'not a regional problem' but was strictly happening in D.C.'s policy environment. 'The Rental Act is not a silver bullet — it is one of many things that we have to do. But it is a balanced, data-driven step to increase housing supply, preserve affordability and ensure fairness.' The amended version of the Rental Act that advanced Monday would speed up the eviction process when a landlord is seeking an eviction for public safety reasons after a person is accused of a violent or dangerous crime, reduce the notice to vacate timeline from 30 days to 10 days and require a judge to hold a hearing within 20 days. It would similarly streamline the process if the reason for the eviction is nonpayment of rent, changes that have drawn concern from tenant advocates but that affordable housing developers have said are necessary given the serious financial strain they are facing, putting some affordable buildings at risk of foreclosure or causing deferred maintenance. But the provisions that drew the most debate are those that would overhaul the Tenant Opportunity to Purchase Act, a four-decade-old law designed to give tenants the first right of refusal when their building goes up for sale. The law allows tenants to organize to purchase it or, far more common, to agree on a buyer whose vision for the building, rent or improvements aligns with theirs. Lawmakers spent weeks debating new exemptions to TOPA — Bowser had proposed a 25-year exemption for all new construction, along with exempting all buildings that have an affordability covenant attached to them. White's amended version would instead exempt all newly constructed buildings for 15 years, preserving the exemption for buildings that have affordability covenants while making other changes intended to allow investors to enter or exit from a development more easily. White said since data has shown that the overwhelming majority of TOPA transactions involve buildings that are more than 50 years old, the 15-year exemption would have a limited impact but will 'help spur investment in D.C.' Several lawmakers, however, argued the legislation went too far in some areas in eroding tenants' rights in favor of investors. Council member Matthew Frumin (D-Ward 3) said he doubted TOPA was a key driver of the lack of investment in new housing — but either way, he argued the 15-year exemption for new construction should only apply going forward, not retroactively. 'Even if TOPA was having an effect on chilling investment going forward, I don't see why we would apply the exemption going backward,' he said. 'Going backwards, it would take TOPA rights from a category of tenants in buildings constructed in the last 15 years.' Frumin's amendment failed, as did another that would have struck the TOPA exemption for all buildings with an affordability covenant. Council member Brianne K. Nadeau (D-Ward 1) said it was a loss for tenants' rights and that she would be working on more changes before the final vote. 'There's so few opportunities as a renter to actually have a voice in what happens to the property you're living in. TOPA is still really one of the only ways for that to occur,' Nadeau said, arguing that ensuring a building's affordability should come through TOPA, not by rolling it back. She and Lewis George voted no. Bowser said she appreciated White's compromises but strongly opposed lawmakers' additional amendments. She wanted to see the 25-year exemption for new construction — and any substantial renovations on a building — restored, along with other objections. The legislation is expected to go up for a final vote in mid-September.
Axios
15-07-2025
- Business
- Axios
Tipped wage standoff leaves D.C. restaurants in limbo — what's next
D.C.'s tipped wage fight is firing up after the D.C. Council nixed a proposal to replace Initiative 82 with a new minimum wage for tipped workers — but the debate remains on the table. Why it matters: Independent businesses say they're in crisis, workers worry about their wages, and there's no clear consensus on what to do about I-82. Driving the news: The Council this week voted to uphold the law phasing out the lower "tipped minimum wage," rejecting a proposed repeal in the upcoming budget 7-5. Council member Janeese Lewis George cited the will of voters (74% approved I-82 in the 2022 election) and the need to protect workers counting on higher pay. Yes, but: Another proposal to replace I-82 could materialize by the council's second, final budget vote on July 28. Mayor Muriel Bowser — who's pushed for a repeal — said she's "optimistic" about reaching a final budget that "lives up to our DC values," but noted "there are issues our city needs the Council to move faster on." First in line: "predictability in the restaurant industry." Catch up quick: I-82 requires businesses to gradually pay tipped staff like servers and bartenders more, regardless of tips. The Restaurant Association of Metropolitan Washington (RAMW) and some tipped workers have joined Bowser in calling for a repeal, citing higher costs and falling tips as businesses add service fees. Plus, record restaurant closures last year — and nearly 60 so far this year, per RAMW, which projects over 100 by 2026. Meanwhile, proponents argue I-82 has led to higher, more consistent and equitable wages — especially for workers in lower positions who might not speak English or have their voices heard. The big picture: Earlier this summer, the D.C. Council paused the next wage bump — from $10 to $12/hour — after RAMW and Bowser warned it could push more small restaurants to close. Council Chair Phil Mendelson presented a "compromise" a day before Monday's 2026 budget vote: Repeal I-82, set a new $8 base wage for tipped staff, and create a $20/hour "super minimum wage" for anyone who doesn't earn that in tips. The plan would have also capped restaurant service fees at 10% to encourage tipping. Reality check: I-82 isn't solely responsible for tough operating conditions — there's also pandemic repercussions, inflation, high rents and mass DMV layoffs. But, anti-I-82 groups argue, wage law is one of the few things the city can control. Plus, they argue, tipped workers still make D.C.'s $17.95/hr minimum wage if they don't get enough in tips. Employers are legally required to make it up.
Washington Post
14-07-2025
- Business
- Washington Post
D.C. Council advances budget that softens cuts, funds ranked-choice voting
D.C. lawmakers softened some of Mayor Muriel E. Bowser's proposed cuts impacting the city's poorest residents in the roughly $22 billion budget for fiscal year 2026, which got initial approval Monday, but council members moved forward with significant cuts to health care and environmental programs. 'We still have concerning gaps in this budget,' said council member Janeese Lewis George (D-Ward 4), who said she and her colleagues would keep trying to address issues like resources for homelessness and health care cuts before a final vote July 28. 'We want to continue to fight for D.C. residents who are going to be left without health insurance.'
Yahoo
15-03-2025
- Politics
- Yahoo
DC officials, advocates make last-ditch effort to prevent the stopgap spending bill from Senate approval
WASHINGTON (DC News Now)—With just hours to go to avert a government shutdown, local DC advocates and officials are making a last-ditch effort to address a provision in the federal spending bill that would have devastating impacts on the district budget. 'The impact is almost immediate for us as District residents if this goes through,' said Ward 4 councilmember Janeese Lewis George. Lewis George was one of several councilmembers lobbying at the Senate Hart Building Friday. 'We've been here since 9 a.m. making calls to legislative directors, trying to meet with Senators,' she explained. 'This is going to impact your day-to-day life and your families and your children and your staff.' The spending plan, which was already approved by the House, is a continuing resolution (CR) that would keep the government open for the next six months at 2024 spending levels. Proposed federal bill would cut DC budget by roughly $1 billion, city officials say Unlike in previous continuing resolutions, however, this CR treats the District as a federal agency, forcing the city to also spend at 2024 levels, despite already operating under its Congressionally-approved 2025 budget. Should the CR be passed by the Senate, D.C. would need to make an immediate $1 billion cut to its local budget, which is funded by local tax dollars, not federal dollars. 'If the language (excluding DC) is omitted we will almost immediately be going into triage mode because these are ongoing payments. This is mid-year. There are payments we will not be able to make,' said Lewis George. 'I have been in a daze since the 2024 election,' said Travis Ballie, organizing director with DC Action. 'I feel angry, I feel hopeless but I feel in community and that's what's keeping me going right now.' Ballie has been one of the many people lobbying senators since Wednesday. 'We are running at the senators in the hallways and lobbying them on the spot,' he said. 'Washington, DC is treated like a canary in a coal mine. Republicans like to experiment in the District before they take policies nationally, so this is not just about the District, this is about standing up for the next fight.' If the CR passes, advocates said there could be other ways to address the situation. 'There are lots of potential remedies because we have a robust system of government and despite challenges with checks and balances, they still exist,' said Jasmine Tyler, Executive Director of the Justice Policy Institute. 'We could see a stand-alone piece of legislation introduced.' That's what happened when the last CR was passed. Congress voted on a separate piece of legislation granting DC control over the RFK Stadium site, a measure that was omitted from the CR. Still, Tyler said the vote could have lasting impacts on policy. 'The message to DC is clear, you don't get a chance to govern yourself despite the fact we've had home rule status for five decades,' she said. 'This is part of a package approach to undermining DC sovereignty. And it's just the one that worked.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
