Proposed DC budget includes increased sales tax, more Metro funding

WASHINGTON (DC News Now) — D.C. Mayor Muriel Bowser and her administration presented her proposed 2025 budget to the City Council on Wednesday.

The budget included cuts to some personnel and services but invested in downtown and public safety. It also proposed some tax increases, including a sales tax hike in Fiscal Year 2026 that would support Metro. A proposed 80-cent fee on hotel stays would go toward funding the 911 system to improve public safety.

The 2025 budget includes $21 billion in operating funds and $11.8 billion in capital improvement funds. Administration officials said that the District revenues are expected to grow by 2% per year while costs are growing by 7.5% per year.

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Administration officials said that some services will be slashed, outlining plans to eliminate the DC Circulator bus system.

There will be some cuts to the Early Childhood Education Fund and less funding to other important programs for housing production, officials said.

The budget also outlines personnel cuts — over 400 positions will be eliminated, 69 of which are currently filled. Those full-time employees could be laid off if they are not reassigned.

Councilman Kenyan McDuffie said during his remarks that he was troubled by cuts coming to valuable programs and that he will “fight” to restore programs that benefit the public.

“I do appreciate the sacrifices you’ve had to make,” McDuffie said to the mayor and her staff.

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“I don’t think I’ve ever seen budget cuts this significant,” said Councilmember Charles Allen. “We’re going to have difficult choices to make.”

Allen expressed concerns about the budget, including about raising taxes on low-income taxpayers and cuts to local business support.

During the hearing, Councilmember Robert White called for a review to figure out wasteful spending in the District government.

Bowser is also presenting a truancy bill that would tackle chronic absenteeism in the D.C. Public Schools system by holding parents more accountable if their children miss large chunks of school.

One major requirement would require parents or guardians to participate in mandatory group meetings if their child is charged with a major crime or a crime with a gun. It would also eliminate diversion programs for those charged with a knife, gun or imitation firearm.

The Council is expected to start hearings on the mayor’s budget in the coming days.

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