Washington, D.C. is once again at the center of a tug-of-war with Congress—this time over a $1.1 billion budget cut that city officials say will devastate public services. In March 2025, under a newly enacted continuing resolution (CR), D.C. was forced to revert to fiscal year 2024 spending levels—despite being halfway through its FY2025 cycle. The District’s leaders argue that these funds are raised locally, not federally, and that depriving the city of its own tax dollars will have severe ramifications for schools, public safety, and infrastructure.
A crowd of D.C. residents, advocates, and local lawmakers gathered at a rally dubbed “Hands Off DC,” chanting “Free D.C.! Free our money!” they urged Congress to pass the District of Columbia Local Funds Act, 2025, which unanimously cleared the Senate but remains stalled in the House of Representatives. Many questioned how, in 2025, the nation’s capital could still be denied the right to spend its own funds as it sees fit.
The $1.1 Billion Crisis: How We Got Here
Since 1973, when the District of Columbia Home Rule Act granted the city a modicum of self-governance, D.C. has had to send its locally raised budget to Congress for approval. Historically, continuing resolutions that fund federal agencies have included a provision allowing the District to continue spending at current levels on local programs. However, the latest CR broke with this practice, forcing D.C. to revert to last year’s spending levels—mid-fiscal year.
Congressional leaders supporting the measure did not dispute that these are D.C. tax dollars. Instead, the clause was inserted ostensibly to give Congress more “oversight,” even though it “doesn’t save the federal government any money,” as Senator Chris Van Hollen (D-Md.) pointed out. This sudden rollback of spending capacity has created a $1.1 billion shortfall in the city’s $21.2 billion FY2025 budget.
D.C. Mayor Muriel Bowser criticized the move as an “unprecedented” form of federal intrusion, warning that the city faces widespread layoffs, cuts to public safety, teacher furloughs, and possible suspension of infrastructure projects if the House refuses to pass the corrective bill. “We are halfway through the fiscal year,” Bowser said at a press conference. “Drastic midyear cuts of this magnitude make it impossible for us to provide the essential services our residents need.”
D.C. Budget: A City in Fiscal Limbo and The People Affected
The unprecedented crisis arose in March 2025 when Congress passed a continuing resolution (CR) imposing spending restrictions on the District. The CR required D.C. to revert to fiscal year 2024 spending levels midway through its current fiscal year, creating a staggering $1.1 billion shortfall. Critics have pointed out this forced cut does not reduce federal expenditures, as these funds originate entirely from D.C.’s locally collected taxes.
At the rally, Jacques Patterson, President of the D.C. State Board of Education, passionately articulated the severity of the situation. “We are 700,000 people plus that live in this city—this is our home,” Patterson declared. “This is not federal money. This is local tax dollar money that they have basically frozen six months into the fiscal year and said, ‘No, you’re not going to be able to do that.'”
Patterson emphasized the real-world implications of the congressional freeze, particularly for education. “A hundred thousand children are going to be affected when you take away $1.1 billion. We need to make sure we can look beyond just what happens in the classroom—what happens after they get out of school each day? What’s their safety like on the streets? How are they getting back and forth to school?”
Student leader Malaysia Cook, a sophomore at Anacostia High School, echoed Patterson’s concerns. “This funding is not just a number—it’s life-altering,” she explained. Cook highlighted potential cuts to summer and after-school programs vital for student safety and enrichment, stressing, “We risk undermining the progress we’ve made providing quality education to all students in D.C.”
Kimberly Perry, Executive Director of DC Action, a child and youth advocacy organization, underscored the broader impacts of the budget crisis. “Removing a billion dollars from the District’s budget is going to force our local leaders to make immediate cuts to our schools, public safety, social services, and critical infrastructure,” Perry stated. “Just the thought of such a dramatic measure is absolutely infuriating.”
Historically, D.C. residents have struggled under the Home Rule Act of 1973, which granted limited self-governance but kept budget oversight firmly under congressional control. A decisive step toward budget autonomy occurred in 2013 when D.C. residents voted overwhelmingly—83% in favor—to grant the District greater control over its local finances. Despite favorable court rulings since then, congressional authority still poses frequent hurdles.
In response to the current crisis, the Senate unanimously passed the bipartisan District of Columbia Local Funds Act, 2025 (S. 1077), spearheaded by Senator Susan Collins (R-Maine). This bill would restore the city’s ability to spend its local funds without federal restrictions. “This isn’t about federal dollars—it’s about respecting that D.C. taxpayers deserve control over their own locally raised revenues,” Collins explained.
Despite bipartisan Senate approval and vocal support from President Trump and House Appropriations Committee Chair Tom Cole (R-Okla.), the House of Representatives has yet to schedule a vote, prolonging uncertainty for the city and its residents.
The potential impacts are stark. Education faces significant disruptions, including possible teacher layoffs and modified school schedules. Public safety could be compromised, and critical infrastructure projects delayed, affecting everything from road improvements to essential city services like trash collection.
Barry Wilson, representing transit workers from ATU Local 689, expressed deep concern regarding employment security for thousands of public transit workers. “We represent 15,000 union workers in this region,” Wilson noted. “Due to them not releasing this funding, there’s a chance that most of our members could be laid off, severely impacting transit reliability.”
LaJoy Johnson-Law, a leading advocate for D.C. residents, argued that the issue transcends partisan politics. “We consistently emphasize that this is not a matter of partisanship; it’s fundamentally about humanity,” Johnson-Law remarked. “It’s a question of right versus wrong.”
Stripping D.C. of Local Decision-Making & Fiscal Authority
Recent legislative threats compound the situation. In February 2025, two Republican lawmakers Senator Mike Lee (R-UT) and Rep. Andy Ogles (R-TN) introduced the BOWSER Act, aiming to revoke the District’s Home Rule altogether, potentially stripping D.C. of local decision-making authority in areas including law enforcement, criminal justice, housing, and budgeting.
Councilmember Christina Henderson described the pace and nature of congressional actions as unprecedented and troubling. “We’ve never seen this pace of rollbacks to our autonomy before,” Henderson observed. “This represents very uncharted territory for the District.”
Community leaders emphasize the profound implications for democracy and self-determination, noting D.C.’s unique status as the only jurisdiction in America without voting representation in Congress yet still subjected to extensive federal oversight.
“taxation without representation”
“The greatness of a nation is measured by its compassion,” said a local faith leader at the rally. “It is wrong to scale back funding for education in what used to be the capital of the free world. Hands off of the children, hands off of our money, and hands off of the District of Columbia.”
Moving forward, Mayor Bowser’s administration has implemented contingency measures, including freezing non-essential hiring and preparing to notify municipal bond markets. Advocates and officials alike continue pushing for immediate House action to pass S. 1077 and avert catastrophic cuts.
The D.C. budget crisis again raises broader questions of D.C.’s autonomy and democratic rights. Residents remain determined, continuing their vocal and public push for what many describe as basic fairness and democratic integrity.
“Ultimately, this shouldn’t be a partisan issue,” Johnson-Law concluded. “We’re simply asking for the ability to fund local priorities with local money—a basic right afforded to every other jurisdiction in America.”
As the House deliberates, D.C. residents continue to advocate, hoping their message resonates clearly: restoring the District’s access to its local funds is both urgent and fundamentally just. Some local government watchers note that D.C. has successfully navigated congressional interference before, but never on such a large scale mid-fiscal year. Observers worry that continued inaction will set a damaging precedent, effectively affirming Congress’s authority to “freeze” locally generated revenue whenever it suits a broader political agenda. As Patterson emphasized, “It’s our money—we pay for it, and we deserve the right to use it to serve our own communities.
What happens next remains uncertain. Will lawmakers heed the pleas of 700,000 D.C. residents and pass the District of Columbia Local Funds Act? Or will the District once again find its hands tied by an institution in which it has no voting representation?
