After months of fierce debate, the D.C. Council passed its final version of its $21 billion budget Wednesday, further raising taxes to stave off the steepest cuts that Mayor Muriel E. Bowser (D) proposed.
Washington, D.C
Analysis|Five winners and losers in D.C.’s 2025 budget
In a year of tough choices, here are some of the winners and losers in D.C.’s 2025 budget. Which initiatives or agencies got more investment? What got cut? Who got what they wanted (or didn’t)?
Have additions? Leave your list of budget wins and losses in the comments.
Bowser and the council are going big on D.C.’s downtown. With empty office buildings and vacant retail storefronts at some of their worst levels in history, the council kept most of the Bowser administration’s nearly $800 million in investments toward reviving downtown. Split between the operating and capital budgets, the investments are intended to spur development, including tax incentives for developers to turn vacant office buildings into housing or something more interesting, and fill vacant retail space such as with a “pop-up retail” program that will allow vendors to temporarily fill vacant storefront spaces.
Not to be forgotten — and perhaps an honorary D.C. budget winner — is Capitals and Wizards owner Ted Leonsis, whose company is getting $520 million in public funds to revitalize Capital One Arena.
Coming off a historic spike in violent crime, Bowser and the council fully funded the D.C. police department’s requests for more officers and other needs this year, with a $572.9 million budget. The council’s public safety committee expects the department will be able to hire 276 additional officers through recruitment and the cadet program to bring the force to 3,370. The budget also includes $8.7 million to hire 40 new “community safety officers” who will take on tasks like administrative work, looking for missing people and low-risk security to free up sworn officers for more crime-fighting.
With all that love for downtown, lawmakers fought to spread a bit more of it to small businesses in other commercial corridors. Of note, a proposal from council member Charles Allen (D-Ward 6) will double the Small Retailer Property Tax Credit from $5,000 to $10,000 — helping small businesses offset high real estate or other costs — while also expanding eligibility for the program.
The business committee also preserved $1.9 million enhanced funds for the Main Streets program, which supports businesses in buzzy retail centers across the District, while Allen also added grant funds specifically for LGBTQ+ businesses in Ward 6 Main Streets. And a bill by council member Brooke Pinto (D-Ward 2) — the BEST Act, which is funded in the budget — reduces licensing burdens and fees for businesses trying to get up and running with fewer headaches.
The caveat: One of the most lucrative tax hikes the council passed is on the tax employers must pay into the paid family leave pot — impacting small and big businesses alike. The council hiked it to 0.75 percent from its current 0.26 percent. Any money that exceeds what’s needed to fund paid family leave goes into the general fund.
Council member Kenyan R. McDuffie (I-At Large) hit a trifecta in this year’s budget, advancing three major policy goals at once. Mendelson included McDuffie’s legislation to drastically reform the sports wagering landscape by opening up the market for competition, ending a monopoly held by the current contractor, Intralot, which has woefully underperformed lawmakers’ expectations. Building on that, the revenue from this new sports wagering system would go toward funding baby bonds, a program McDuffie spearheaded that creates trust funds for children born into low-income families. In addition, the council’s budget also includes funds to stand up a task force to study reparations, another major McDuffie priority.
McDuffie’s sports wagering bill survived an effort to separate it from the budget Wednesday — but some details may still be worked out during the council’s upcoming vote on laws associated with the budget.
5. New or prospective parents
A number of initiatives, big and small, cater to new parents with infants or small children — or those expecting or hoping to conceive. A newly established Child Tax Credit — an idea from council member Zachary Parker (D-Ward 5) — will offer up to $420 per child to households with a child under 6, depending on income. The council also enhanced the Earned Income Child Tax Credit. And the council funded council member Christina Henderson’s (I-At Large) bill to expand access to fertility treatment and established a new grant for to help expectant parents, or legal guardians, with child care needs when urgent medical appointments come up.
With homelessness increasing, and with limited funds to address the insatiable demand for housing aid among lower-income residents, D.C.’s housing programs are underwater.
Amid a plan by housing officials to terminate more than 2,000 households from rapid rehousing, a time-limited program that provides a housing subsidy for people exiting homelessness the program, Bowser’s budget proposal slashed rapid rehousing assistance for individuals in half and by about 17 percent for families.
Lawmakers worked to fund more than 600 new housing vouchers — some of which would go to people exiting rapid rehousing — after lobbying from housing advocates. And though still a lot less than last year, council member Robert C. White Jr. (D-At large), the housing committee chairman, restored $6.9 million more in Emergency Rental Assistance Program funding, which Bowser had proposed cutting by more than half.
Still, White said he would “not sugarcoat it” Wednesday, noting that despite the council’s efforts, major gaps in housing aid remain.
2. Connecticut Avenue bike lanes
It’s hard to imagine a more tortured government planning process. The Bowser administration announced plans to create a 2.7-mile bike lane on Connecticut Avenue Northwest in 2021, delighting cyclists while frustrating others who raised fears about fewer vehicle traffic lanes and parking spaces. After two years of divided views, the Bowser administration said last year it was hitting pause to rethink the bike lane design.
This spring, the Bowser administration said it would not move forward with the bike lanes and would advance a different vision — infuriating cycling and multimodal safe-streets advocates and pleasing other commuters worried about traffic and parking impacts. The decision was just in time for budget season. Allen, chairman of the transportation committee, tried to re-add a bike lane requirement through his committee’s budget proposal, but Mendelson did not move forward with it.
3. Lewis Ferebee and the D.C. Public Schools central office
For the second year in a row, a standoff erupted between Mendelson and D.C. Public Schools Chancellor Lewis D. Ferebee about how to fund the public school system. Bowser’s administration ignored a law known as the “schools first” funding formula, which directs that individual schools can’t get less funding than they did the year before. So in his own proposal, Mendelson redirected $25.4 million away from the DCPS central office back into individual schools.
Ferebee strongly objected. He and Bowser told Mendelson that the move would require cuts to programs including swimming lessons for third-graders and after-school meals and services like technology support, while blocking a pair of new initiatives — math training for teachers and the creation of an alternative school.
Mendelson and the council did not budge, arguing individual schools should be the priority.
4. A comprehensive public safety plan
When the council passed the Secure D.C. crime bill in March, it came with an amendment from council member Trayon White Sr. (D-Ward 8) ordering the Bowser administration to create a comprehensive public safety plan. The only hitch: It had a $343,000 price tag, according to a fiscal impact statement, meaning lawmakers would have to set aside funds for it in the budget. But it’s not in the budget, making it a toothless provision.
Separately, White voiced concerns about cuts to the Office of Neighborhood Safety and Engagement, which has been without permanent leadership for over a year and which runs the executive’s gun violence intervention program. Led by Pinto, lawmakers on the public safety committee said the agency needs to focus on enhancing its program by pursuing universal training for violence intervention workers and contractors and completing a merger with the attorney general’s similar Cure the Streets violence intervention program. Decrying a lack of coordination, lawmakers wrote in the report that “the dual programs currently in existence lead to a waste of taxpayer funds by duplicating what could and should be shared infrastructure.”
Pinto said she’d hoped that merger would be ready in time for this year’s budget, adding that the work is “certainly not over” in urging the executive to move toward a more “comprehensive strategy to prevent violence.”
5. Scofflaws and dangerous drivers
Nearly $300,000 is included in the budget to hire civil attorneys at the attorney general’s office who will bring cases against dangerous drivers and begin implementing the STEER Act. Meanwhile, the budget also funds a program allowing the DMV to install a “speed governor” on cars to automatically lower the speed for people who are known reckless drivers.
Plus, with contributions from the public works committee headed by council member Brianne K. Nadeau (D-Ward 1), some Department of Public Works tow trucks will now get to have license plate readers to go after parking ticket scofflaws.
Michael Brice-Saddler contributed to this report.
Washington, D.C
The director of the Congressional Budget Office—known for its gloomy national debt data—is very optimistic that a crisis will be avoided entirely | Fortune
Dr Phillip Swagel is an optimist, both by nature and when he looks at the U.S. economy.
This fact is perhaps at odds with what one might assume: Swagel is the director of the Congressional Budget Office (CBO), the nonpartisan agency that offers independent budgetary and economic analysis to Congress.
Very often—an inevitable occupational hazard—the subject of national debt and the interest the U.S. Treasury pays to maintain is its central focus. The numbers are eye-watering: Public debt stands at more than $39 trillion. The interest expense on that borrowing now exceeds $1 trillion a year. Indeed, the latest budget update from the CBO highlights that the government—according to preliminary estimates—paid out nearly $530 billion between October 2025, when the fiscal year starts, and March 2026. This equates to more than $88 billion in interest payments a month, or more than $22 billion a week.
The CBO’s figures are routinely cited by policymakers, think tanks, and lobbyists as alarming evidence that the U.S. needs to find a more sustainable fiscal path or risk dire straits.
Swagel doesn’t subscribe to the notion that the U.S. will face a crisis of its own making. His justification is simple: He was at the Treasury during the 2008 financial crisis, and joined the CBO months before the COVID pandemic began. He has watched as the U.S. economy, seemingly against all odds, has clawed its way out of economic crises before.
That’s not to say Swagel isn’t a staunch advocate of setting the U.S. on a more sustainable fiscal path—rather, he trusts the people in power to do so when the time comes.
Why the optimism?
Among those concerned about national debt are notable names: JPMorgan Chase CEO Jamie Dimon, Federal Reserve Chairman Jerome Powell, and Bridgewater Associates founder Ray Dalio. Tesla CEO Elon Musk is also worried about federal spending and has endorsed a plan floated by Berkshire Hathaway founder Warren Buffett that would render members of Congress ineligible for reelection if they allow deficits to exceed 3% of GDP.
On the other hand, optimistic economists suggest that, despite the value of the debt, it’s not actually an issue: the bond market is holding steady, indicating a reliable market of buyers. Likewise, the U.S.’s own central bank buys huge swaths of the debt, meaning, in the simplest of layman’s terms, the economy can essentially print its own money. There are holes in this argument, not least the fact that Fed chairman nominee Kevin Warsh has suggested he would like to reduce the Fed’s balance sheet and may therefore be less inclined to finance borrowing.
Swagel’s positive outlook doesn’t rely on the argument that a crisis hasn’t happened yet, so therefore it never will: “[My optimism] is rooted in my experience,” Swagel tells Fortune in an exclusive interview in Washington D.C. “First being at Treasury during the financial crisis and seeing very difficult times and the country coming together with an effective response—not saying it’s perfect, lots of controversy—but it was effective.”
“The second thing is policymakers are smart, they’re thoughtful. Interacting with members of Congress makes me optimistic. I know you read about all the squabbles … I’m completely aware of this, but the policymakers that are thinking about these things are thoughtful and effective. Not necessarily always effective at passing legislation, but that’s part of our political system, it was set up to make it difficult ot pass legislation.”
Decisions on the horizon
Swagel’s optimism that Congress will be pushed into action will be tested sooner rather than later, likely at some point in the next six years, he told Fortune. This is partly due to the fact that, according to the Committee for a Responsible Federal Budget (CRFB) both Social Security and Medicare will become insolvent within that time period.
“Making progress to address the fiscal trajectory would be a positive for the U.S. economy,” Swagel said. “Credible steps would lead to lower interest rates that would make the subsequent adjustment easier, there is a reward to virtue. It’s a positive thing, we can’t go on [with] the scolding narrative. My sense is that members of Congress understand the fiscal situation, it’s not that everyone single one has looked at our one-pager of numbers and understands the debt to the third decimal point, but they understand something needs to be done.”
“It doesn’t have to be done immediately, but at some point reasonably soon.”
Swagel is of the opinion that bond investors haven’t increased risk premiums not because they’re not worried about a fiscal crisis, but because they have priced in preventative action from Congress—in his mind “a vote of confidence that my optimism is not misplaced.”
“As a country, we face up to these problems. It’s not happening now, I’m not sure it’s going to happen in the rest of this year or even the next year, or the next two years. But we will face up to it, and the market in some sense expects us to, because otherwise interest rates would be higher,” he explained.
The Cheesecake Factory
The role of the CBO, to some extent, is to provide policymakers with their options if and when they do choose to take action on federal deficits. It’s a menu not unlike the Cheesecake Factory, Swagel says: Large, inclusive of a range of modifications and options, and delivered without judgement.
“Right now it’s maybe a pick three, and you’re looking at a six or seven course menu,” joked Caleb Quakenbush, director of fiscal policy at the Bipartisan Policy Center, in an interview with Fortune. “The longer you delay, the more you’re gonna have to add to your tab, and those options become more expensive.”
Indeed, economists and analysts aren’t necessarily worried about the absolute level of government debt, rather the debt-to-GDP ratio. Depending on whom you ask, the debt-to-GDP ratio stands at around 122% of GDP at present. This measure demonstrates an economy’s spending versus its growth, and the risk associated with lending to a nation that isn’t growing fast enough to handle its spending. To rebalance that ratio, an economy could either cut spending or increase growth—the latter being by far the less painful option.
The growth option is becoming less feasible, Michael Peterson, CEO of fiscal think tank the Peter G. Peterson Foundation, told Fortune in an exclusive interview: “I think it requires government action because we’ve waited so long. We’ve added so many trillions, and the current deficit is so big at 6% that the level of growth you would need really exceeds what is feasible.
“Growth needs to be a part of it, but it’s sort of a vicious cycle. The longer we delay, the more debt we have, the slower growth is going to be. The more we get this under control, I think the greater optimism there is, interest rates go down, more growth comes from that. It’s sort of a virtuous or vicious cycle depending on your policy response.”
Washington, D.C
12th Honor Flight Tallahassee returns home from successful trip to Washington D.C.
TALLAHASSEE, Fla. (WCTV) – Seventy-two veterans took a trip Saturday to our nation’s capital to visit memorials honoring their service in the armed forces.
This year marks the 12th trip to Washington, D.C. for Honor Flight Tallahassee.
Early Saturday morning, veterans and their guardians met to take a charter flight up to D.C.
Throughout the day, veterans were taken to the World War II memorial, as well as the Korean and Vietnam War memorials. The veterans also visited Arlington National Cemetery and the Tomb of the Unknown Soldier.
More Tallahassee news:
The day ended with a wonderful welcome home celebration.
Our Jacob Murphey, Julia Miller, Taylor Viles, and Grace Temple accompanied the veterans, capturing moments from throughout the day.
The team will have live coverage from Washington, D.C. on Monday to share more from the day’s events.
We will continue to have coverage throughout the month of May, leading up to our Honor Flight special on Memorial Day.
To keep up with the latest news as it develops, follow WCTV on Facebook, Instagram, YouTube, Nextdoor and X (Twitter).
Have a news tip or see an error? Write to us here. Please include the article’s headline in your message.
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Copyright 2026 WCTV. All rights reserved.
Washington, D.C
Storm Team4 Forecast: A chilly, gusty Sunday before a cool start to the week
4 things to know about the weather:
- Chances of rain in the morning
- Gusty Sunday
- Chilly Monday
- Temps will rise again through the work week
Download the NBC Washington app on iOS and Android to check the weather radar on the go.
After a nice and warm Saturday, changes arrive for part two of the weekend.
The first half of your Sunday will have a chance for showers. Winds will pick up with our next system and are expected to gust to about 20-30 mph. Cooler air will settle in, and lows Sunday night fall into the 40s.
Highs temps Monday will reach only into the mid to upper 50s.
However, temperatures will rise through the week, so you won’t need your jackets every day.
QuickCast
SUNDAY:
Showers, then partly cloudy
Wind: NW 10-15 mph
Gusts @ 30 mph
HIGH: Lower 60s
MONDAY:
Partly cloudy
Wind: NW 10-15 mph
Gusts @ 25 mph
HIGH: Upper 50s
Stay with Storm Team4 for the latest forecast. Download the NBC Washington app on iOS and Android to get severe weather alerts on your phone.
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