Room 500 of the John A. Wilson Building filled to capacity on what council members called the most unconventional of days to conduct a final budget vote, during what has been one of the most hectic years in recent D.C history.
The Fiscal Year 2026 budget approved by the council on Monday evening preserves Initiative 82 in a manner that some council members say achieves parity in the current economic environment. Ranked-choice voting also remained intact, despite efforts to mandate a D.C. Board of Elections needs assessment.
Amid contention with the Office of the Chief Financial Officer about more than $200 million in funds, the council added the child tax credit and D.C. Healthcare Alliance to a contingency funding list. To the chagrin of advocates, the council also struck down an amendment for marginal tax increase on wealth.
On Monday morning, D.C. Councilmember-elect Trayon White (D-Ward 8), not yet D.C. Board of Election certified, sat among activists, lobbyists and reporters who packed council chambers. Upon walking in the chambers, he greeted a bevy of grassroots activists, Wilson Building staff members, and powerbrokers, including former Ward 4 D.C. council member Brandon Todd.
Councilmember-elect White, who the legislative body expelled in February for code of conduct violations related to a federal bribery charge, said he made his return intent on “pay[ing] attention” and “making [his] presence felt.”
“I just want to get the facts of where people are as it relates to the budget,” White told The Informer. “Of course, the hot topics are RFK, even Initiative 82 but I’m more concerned about the quality of living for residents in D.C. and what we’re doing to address that.”
Shortly after defeating Salim Adofo, Mike Austin and Sheila Bunn in a special election triggered by his council expulsion, White expressed plans to speak with D.C. Council Chairman Phil Mendelson (D) to explore the conditions of his return— which DCBOE is scheduled to certify on Aug. 8.
On Monday, White said that the meeting with Mendelson hasn’t come to fruition.
“Just getting back in the flow, reaching out to members, waiting to get responses,” White told The Informer. “So it’s going to happen.”
On Tuesday, Mendelson’s spokesperson said that, amid budget and RFK campus development discussions, there hasn’t been much talk about whether there would be a new ad-hoc proceeding.
In regard to White’s political status, the spokesperson said the chairman isn’t likely to make rules changes related to committee chairmanship until the next council session.
However, the spokesperson said, rules changes for committee assignments may be more immediate.
For now, Councilmember-elect White remains focused on “ the preliminaries,” which includes rebuilding his council office.
“Initially we’re taking resumes, trying to figure out the capacity,” he said. “Figuring out if we’re going to have a committee or not. That determines how many staff we get to figure out our budget.”
Chairman Criticizes Chief Financial Officer Lee at Final Budget Reading
On the final reading, the council approved the Fiscal Year 2026 Local Budget Act and Fiscal Year 2026 Budget Support Act.
For the Fiscal Year 2026 Local Budget Act, D.C. Councilmember Zachary Parker (D-Ward 5) was the sole “present” vote, while he and D.C. Councilmember Janeese Lewis George (D-Ward 4) voted against the budget support legislation.
In the lead up to the votes, Mendelson lamented what he described as D.C. Mayor Muriel Bowser’s late budget proposal submission that set the stage for several amendments crafted on the dais, if not in the ante room.
“Dealing with the dynamics of final reading on a budget that came to us two months late,” Mendelson said upon the council’s return from the short recess. “Because of that final reading on July 28, we’re meeting on a Monday not the usual Tuesday so nothing gets circulated until the weekend, which is really hard on folks.”
Mendelson also took aim at the chief financial officer, who he said is infringing on the council’s power of the purse— again. The chairman introduced an amendment, at Lee’s beckoning, that reduces the budget, allowing for the funding of select programs in the event of a projected budget surplus in September.
“We have the CFO insisting that we…could not spend even $60 million of [the] $243 million dollars in additional revenues,” Mendelson said. “Those dynamics are why we are struggling here.”
During Monday’s legislative meeting, Mendelson mentioned that Lee’s concerns stem from an “unspent” balance of more than $214 million needed to replenish the District’s contingency reserves. As he introduced his budget amendment to rectify the problem, Mendelson questioned how Lee reached that conclusion.
“He has not itemized any of these amounts, nor explained why the unbudgeted expenditures and reserve replenishment must occur this year,” Mendelson said. “Moreover, in June, his office estimated that overspending was projected to be about $180 million, less than the $214 million we left available before this amendment.”
Mendelson also questioned whether Lee’s doing his job in preventing government overspending.
“One of the primary responsibilities of the chief financial officer is to ensure that spending does not exceed an approved balanced budget,” Mendelson said. “That has not happened. To compensate for this failure, the CFO is now directing the council how it may appropriate dollars, despite the fact that the law does not give him that authority.”
In a statement, an OCFO spokesperson said lower-than-usual revenue estimates in June necessitate the replenishment of reserve funds. At a time when the District cannot depend on general fund surpluses to meet its obligations, OCFO is keeping a close eye on what unfolds in the last months of Fiscal Year 2025.
“The OCFO is working with the mayor and agencies to address FY 2025 expenses and other obligations in order to ensure the District does not overspend its resources,” they said.
Zachary Parker Unsuccessful in His Push for Tax Reform
Though D.C. Councilmember Zachary Parker (D-Ward 5) recognized his colleagues’ frustrations about Lee’s alleged infringement on the council’s authority, he cautioned against dismissing the chief financial officer’s concerns about spending.
Parker went as far as to champion a permanent tax and revenue commission. However, he unsuccessfully attempted to advance amendments to the Fiscal Year 2026 Budget Support Act that establish the commission, as well as: fund 100 additional permanent supportive housing vouchers and fully fund CHAMPS (the District’s only 24-7 emergency mobile unit for children); strike Bowser’s proposed repeal of the local child tax credit; implement a surcharge on capital gains by closing a loophole that incentivizes high-income taxpayers to avoid paying personal tax; and fund the auditor portion of the ROAD Act.
In his remarks on the dais, Parker contested what he described as misconceptions about his amendments, especially as it relates to tax revenue.
“Another pushback I’ve heard is that if we impose this small surcharge on capital gains, then millionaires will leave D.C. and that will ultimately hurt us,” Parker said during opening remarks on his amendment. “On the contrary, the Tax Revision Commission and the CFO’s office both found that recent tax increases in the DIstrict did not, I will repeat, did not result in out migration.”
During Monday’s legislative meeting, Parker and D.C. Councilmember Brooke Pinto (D-Ward 2) sparked contention when they introduced an amendment reallocating $10 million, out of $31 million, from the Access to Justice program to fund the child tax credit, DNA testing funding and the Office of the State Superintendent of Education child care subsidy.
Discussion on the dais evolved into a plan to restructure the Fiscal Year 2026 contingency list— a guide in funding priorities triggered in the event of a September budget surplus projection.
After Pinto and Parker’s removal of their amendment, and a brief council recess, the council returned to the dais and George read a list that included: the D.C. Healthcare Alliance program, the child care subsidy; early childcare educator subsidy, Housing Production Trust Fund dollars for TOPA, Department of Forensic Science’s in-house DNA testing, emergency rental assistance, and lead pipe testing in District public and public charter schools.
On Monday, Tazra Mitchell, chief policy and strategy officer at the DC Fiscal Policy Institute, had choice words for a council that she says is scared to make tough choices.
“Too few residents will have access to high quality child care, housing supports, and affordable health care under the council-approved budget because of lawmakers’ refusal to face the reality of the moment we’re in and raise needed revenue,” Mitchell said.
In her support for Parker’s amendment, Mitchell said that the District’s highest earners of wealth must take on a greater role in generating revenue through taxes — especially as wealth becomes more concentrated.
“Over and over again, we hear council members say that ‘now is not the time to raise taxes on the wealthy,’” Mitchell later said in her statement. “If an unprecedented transfer of wealth from the poor to the rich is not the time, when is? Exacerbating D.C.’s already extreme level of inequality and increasing hardship isn’t good for growth or creating a strong, equitable economy.”
Looking Back: The Debate about Initiative 83
On Monday, the council, in a 6-5-1 vote, struck down an amendment by Councilmember Pinto that funds the open primary portion of Initiative 83.
D.C. Councilmember Wendell Felder (D-Ward 7) also withdrew an amendment he and Anita Bonds (D-At large) introduced to mandate a comprehensive needs assessment for ranked-choice voting— which the council funded during the first reading of the Fiscal Year 2026 budget.
Felder, perhaps inspired by Pinto’s insistence on respecting the will of the voters, later re-introduced that amendment.
The council struck down that amendment in a 7 to 5 vote, with some council members, like D.C. Councilmember Christina Henderson (I-At large) intent on stopping what she described as a plot to delay and defund ranked-choice voting— a system that’s been assessed by D.C. Board of Elections and the Office of Chief Financial Officer.
“Voters are aware of ranked-choice voting. 73% of voters supported it,” Henderson said. “Beyond that, I also feel like…sometimes we decide to do [a] needs assessment, let’s do a working group, let’s do a commission when we are trying to not do the thing that we already know that we need to do.”
In his remarks on the dais, Felder sought to allay confusion about his intentions, saying that he wanted to ensure that the implementation of Initiative 83 happens without hiccups, and in alignment with the District’s political environment.
Despite Henderson’s assertion that ranked-choice voting, introduced as legislation four years ago, went through a period of public scrutiny, Felder said that District voters, especially those in Wards 7 and 8, need the reassurance that D.C. Board of Elections exhausted all resources to ensure that it can implement ranked-choice voting to the benefit of the electorate.
“I have no problem if we’re going to move forward with ranked-choice voting,” Felder said. “However, I represent a community, Ward 7, and some people would even consider Ward 8, but with no representation here. If we’re going to move forward by implementing the way we change our voting system, we got to do our due diligence…specifically as this will impact our most marginalized community.”
Well before the council started its legislative meeting on Monday, Lisa D.T. Rice reflected on Felder and Bonds’ amendment.
“The fiscal impact statement was issued well over a year ago and the Board of Elections knows what it takes for them to support ranked choice voting,” Rice told The Informer. “And so this last minute second guessing and trying to kill something that received an 8 to 4 vote [during the last reading] is, I feel is shameful.”
For years, Rice, a Ward 7 resident and civic leader who proposed Initiative 83, has organized around the approval and implementation of Initiative 82. In recent months, she and other advocates maintained their presence amid questions about budget priorities and white-out on ballot petitions.
While Rice said she’s been successful in speaking before Bonds at hearings, and even meeting with other council members, she told The Informer she hasn’t been as fortunate with Felder.
“I did try to meet with Councilmember Felder– sent multiple emails to try to meet with him, she told The Informer. “I live in Ward 7. He’s my council member, and I could never get on his schedule… I happened to run into him in the hall back on the 14th.”
Felder’s office told The Informer that it made an effort to meet with Rice.
“She requested to meet prior to the budget hearing, but due to a fully booked schedule, we were unable to meet prior to the hearing,” a spokesperson said in a text message on Tuesday. “In turn, we offered her a date to meet, but we have not received a response. We remain open and willing to meet, and are still awaiting her reply.”
The Dust Settles on the Tipped Minimum Wage Quandary— Kind Of
Toward the end of the July 28 legislative meeting, around the time activists erupted in criticism of the council and D.C. police forced them out of chambers, the council approved an amendment by Henderson and D.C. Councilmember Charles Allen (D-Ward 6) that maintains the current tipped minimum wage of $10 per hour until July 1, 2026.
It then activates a timeline where the tipped minimum, now 56% of the overall minimum wage, incrementally increases in proportion until 2034, when it becomes 75% of the overall minimum wage.
Other provisions in Henderson and Allen’s amendment require employers to provide a breakdown of employee compensation sources on pay stubs and commissions OCFO to study, and produce a report about the effect of tipped minimum wage law changes on the local and federal level.
“When this body voted two weeks ago to not repeal initiative 82, it was done so with an acknowledgement something’s gonna have to give at second reading and second vote,” Allen said in his appeal that the council support his and Henderson’s efforts. “This amendment is that compromise. It’s a recognition that another steep increase in labor costs at this moment might change D.C.’s wonderful and overwhelmingly local restaurant industry. While it slows the implementation down, it continues to close the gap between the tip minimum wage and the full minimum wage.”
Days after the release of its report detailing high restaurant closures, the Restaurant Association of Metropolitan Washington (RAMW) released a statement in celebration of the final product.
“After months of advocacy, coalition-building, and tough conversations, the council’s vote reflects recognition that the original path forward was not sustainable,” RAMW’s statement read. “While not a full repeal, this outcome brings immediate relief to operators and demonstrates that meaningful, data-driven engagement with the industry can lead to real solutions.”
Ryan O’Leary, the restaurant worker who proposed Initiative 82, counted among those who rejected RAMW’s report, pointing out that the restaurants mentioned had closed or paused business for reasons unrelated to Initiative 82.
“They’re lying, and for whatever reason, the council is so close and cozy with business that the idea of a business association outright lying to them could not possibly ever happen,” O’Leary told The Informer. “ But hundreds of workers in nonprofit organizations and people who spend their lives trying to fight for the betterment of working class people are more likely to all be lying than an organized business industry for capital.”
On Monday, O’Leary listened as the council attempted, once again, to reconcile workers’ demands for a sustainable wage and restaurateurs’ cries about a nonexistent profit margin. He still questions the council’s sincerity in doing so, telling The Informer that Henderson and Allen’s amendment doesn’t reflect any attempt to engage restaurant workers.
In speaking about RAMW, O’Leary said that the association, by virtue of representing restaurant groups, and not mom-and-pops, wouldn’t give an assessment unencumbered by their obligation to profit.
“I think that the range of revenue that most people would describe as a small business [type of] restaurant in D.C. would not fall under because they are all part of locally or regionally owned restaurant groups with different names,” O’Leary said. “And they have different themes, different ideas, but they’re all owned by the same people.”
A Look at Other Budget Amendments
Amid President Donald J. Trump’s (R) efforts to “beautify” the District, Bonds unsuccessfully introduced a last-minute amendment allocating more than $900,000 toward the Mayor’s Office of the Clean City, an entity within the Executive Office of the Mayor that connects agencies and community partners in keeping the District clean.
At-large D.C. Councilmember White introduced an amendment— in the works since the first reading of the Fiscal Year 2026 budget— that mandates the allocation of $30 million in the Housing Production Trust Fund toward the preservation of affordable housing. Another White-circulated amendment, approved by the council for the Fiscal Year 2026 Budget Support Act, reallocated $10 million from the HTPF loan credit line to critical repairs and multifamily preservation line.
Ward 3 D.C. Councilmember Matt Frumin, once again, proved successful in his advancement of an amendment shifting dollars between schools.
This particular amendment reallocated $75,000 in Schools First in Budgeting dollars from Jackson-Reed High School to provide half the funding needed for a community in-schools coordinator at what’s been renamed as John Thompson Jr. High School.
While deliberating on the Fiscal Year 2026 Budget Support Act, the council approved, in a 7-5 vote, an amendment that D.C. Councilmember Kenyan McDuffie (I-At large) introduced to grant the mayor authority to enter a contract with an interactive wayfinding kiosk operator.
Per the amendment, the kiosk operator, selected through a request for proposals (RFP), will share revenue with the District. These digital landmarks will provide information about essential services, though not in competition with advertisements displayed at bus shelters.
“We have received many letters of support from all walks of D.C. from restaurants, churches, and others in the faith community expressing the resounding support of these kiosks in every ward of the District,” McDuffie said. “Digital wayfinding is a powerful tool to steer foot traffic towards businesses that might otherwise have been overlooked by larger, more prominent businesses. These kiosks level the playing field, giving our visitors an opportunity to truly explore what makes the District of Columbia unique.”