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Analysis|Five winners and losers in D.C.’s 2025 budget

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Analysis|Five winners and losers in D.C.’s 2025 budget


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.

Council tax hikes — including as on homes worth more than $2.5 million, on the universal paid leave tax that all employers must pay and by eliminating tax exemptions for out-of-state municipal bonds — made some of those investments possible, leaving some feeling that taxpayers were losing out in this year’s budget, while others celebrated the enhanced investments.

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.

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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.

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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.

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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

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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.

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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.”

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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.



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DC residents who’ve owned their home for 70 years now told they can’t park there

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DC residents who’ve owned their home for 70 years now told they can’t park there


Some D.C. residents told 7News they are fed up with the no-parking signs that have been added in front of their homes.

For the first time in 70 years, the view outside Anita Marsh’s home has changed.

“It’s very emotional,” said Marsh. “To be in a place where there’s no access to my door, no one can legally park for me to enter and exit my home. It’s frustrating, but more importantly, it’s upsetting. It’s very upsetting. I find it heartless.”

ALSO READ | DC considers tighter rat control restrictions after poison, tracking and trash concerns

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Video from Marsh showed what she woke up to on Monday morning. She said the District Department of Transportation (DDOT) installed no parking signs in front of her home.

“How do I walk? How do I get into my house? I’m not very ambulatory,” said Marsh. “I have mobility challenges. So what happens?”

Neighbors about a mile away, over on Kimi Gray Court, reached out with the same frustrations. That’s where 7News met Aaron Harris.

“DDOT put these signs up, these signs, and they are ticketing people who are trying to park in front of their home because they have multiple cars,” said Harris.

Both neighborhoods feel that access to their home will now cost them.

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“I’m very nervous because also financial impact is on a retiree,” said Marsh.

7News also got a call from businesses on MLK Jr. Avenue in Anacostia who said DDOT hit them with changes, too. 7News met Ronald Moton in front of his Gogo museum.

“They bring a bus lane without talking to us and take away 29 parking spaces,” said Moton.

Moton said business owners and customers have been hit with $200 tickets.

“This is a community trying to build itself up and survive,” said Moton. “You cannot come and dump stuff like this on us without talking to us.”

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“We can’t afford to pay $90 a week or $180 or $270 per week because we’re in violation in front of a property that wasn’t zoned this way,” said Harris. “At least we didn’t know it was owned that way until the signs went up and they started getting ticketed.”

“I’m very scared. I’m very scared. And very upset,” said Marsh. “I’m not going to be able to stay in my house. Then I’m going to be forced to go elsewhere. Because I’m not going to be able to enter and exit my house.”

7News reached out to DDOT and Councilman Charles Allen, who chairs D.C.’s Transportation and Environment Committee, and asked about the no-parking signs community members feel came out of nowhere. 7News has not heard back from either yet.



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ARCO Design/Build Deepens Its Presence in Washington, D.C. Market

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ARCO Design/Build Deepens Its Presence in Washington, D.C. Market


New office in Tysons, Virginia, brings the firm’s design-build expertise and national resources closer to clients across the capital region

TYSONS, Va., July 14, 2026 /PRNewswire/ — ARCO Design/Build, one of the nation’s leading design-build construction firms, today announced the opening of a new office in Tysons, Virginia, placing the firm in the heart of the Washington, D.C. market and directly on the Capital Beltway. The office expands on the presence ARCO has built in the region over many years and brings the firm’s people, design-build expertise, and national resources closer to existing and prospective clients across the District and Northern Virginia.

A significant share of ARCO’s work in the region has originated in the D.C. area. The Tysons office is the natural next step in the firm’s growth, and a commitment built on established relationships with a track record of completed work. With many of those clients headquartered in the capital region and building across multiple geographies, the Tysons office allows ARCO to be closer to decision-makers, active pursuits, and the opportunities shaping the market today.

The office is further strengthened by local leadership, including Drew Enstice, Vice President, whose experience in the region supports ARCO’s continued growth across the Washington market.

“The Washington region has been central to our growth, and the Tysons office lets us meet it with our full strength,” said Aaron Weir, President, ARCO Design/Build. “We’re building on the relationships and successful work we’ve already established here, while bringing the resources of a national builder to a market with growing opportunity across advanced manufacturing, food and beverage, life sciences, aerospace, defense, and other complex sectors that demand precision.”

ARCO’s integrated design-build approach brings design, engineering, procurement, and construction together under a single accountable team from the outset. The firm delivers cost certainty, compressed schedules, and a single point of responsibility that matter most on complex, regulated, and mission-driven facilities.

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About ARCO Design/Build

ARCO Design/Build is a national design-build construction firm delivering the strength, resources, and expertise of an award-winning national builder combined with the responsive, personalized service of a local partner. With more than 50 offices and over 1,800 associates across the country, ARCO provides comprehensive design, engineering, and construction services across various industries such as industrial, e-commerce, logistics, data centers, commercial, life sciences, defense and aerospace manufacturing, healthcare, food and beverage, retail, and light manufacturing facilities. ARCO is a 100% employee-owned company through its ESOP. To learn more, visit arcodb.com.

SOURCE ARCO Design/Build



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DC nonprofit making millions of meals for the sick is set to expand – WTOP News

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DC nonprofit making millions of meals for the sick is set to expand – WTOP News


Food and Friends expects to double its impact with a $30 million addition and renovation.

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Nonprofit donating two million meals each year is now set to expand

Food and Friends prepares over two million meals each year for people in the D.C. region who are battling serious illnesses. The organization expects to double its impact with a $30 million addition and renovation.

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The first shovels went into the ground Monday at Food and Friends’ headquarters in Northeast D.C.

The 17,000-square-foot expansion will dramatically impact how many people the organization can serve on a daily basis, the nonprofit said.

“The demand has been so high, and so we need more room. And we’re really, really excited to be kicking that off,” Food and Friends CEO Carrie Stoltzfus said. “We’re going to be able to more than double what we do.”

Food and Friends currently packages roughly 7,100 meals per day and delivers throughout the D.C. region in an area approximately the size of Connecticut.

Staff described the current building as bursting at the seams, with many rooms doubling as food storage.

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“Most of the expansion space will be for food production and food storage because that’s really what drives everything else that we do and why we’re all here,” Stoltzfus said.

The new building, set to be completed in May, will include a state-of-the-art kitchen. The current kitchen will be transformed into a chilled food packing room.

This site plan for the Food and Friends’ facility includes its 17,000-square-foot addition. (Click to expand)

The expansion also adds private nutrition counseling rooms for clients who are battling diseases such as cancer, AIDS, renal failure and other illnesses.

All clients of Food and Friends are referred to the program by healthcare providers. Dietitians and chefs have developed 11 meal types tailored to specific health needs.

Rebecca Kahn, director of nutrition services at Food and Friends, said its food is medicine, leading to better health outcomes.

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“Hospital visits are going down as compared to before getting our services. Clients are saving money on healthcare costs,” she told WTOP.

Loris Adams is a volunteer and a former client who received meals from Food and Friends while she battled ovarian cancer. She’s thrilled with the expansion.

“People like me, people like your neighbors have an opportunity to be fed and nourished — body, soul and spirit — while they’re going through really hard and difficult times,” she said after the groundbreaking.

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