Washington Mayor Muriel Bowser on Friday unveiled her last budget before leaving office at the end of this year.
The $21.2 billion gross operating spending plan trims the general-fund budget—which pays for core city services—to $12.7 billion, a 3.3 percent cut from the 2026 level. Priorities remain education and health care, especially Medicaid.
Yet the proposal eliminates $127 million previously set aside for future collective-bargaining deals and non-union pay raises. It also caps the child-care subsidy program at 6,000 children and ends a pandemic-era wage supplement for child-care workers.
Bowser told the D.C. Council the city is “not broke.” She said the reductions address a revenue shortfall caused by fewer federal workers and higher costs for Medicaid and the Supplemental Nutrition Assistance Program.
“We are adjusting to what DOGE has done to our workforce and commercial corridor,” she said, referring to the Trump administration’s Department of Government Efficiency. “I think we all have to be clear-headed about where we are and what it will take to keep growing.”
Revenue has fallen because of federal workforce reductions ordered under the current administration. The D.C. Office of Revenue Analysis estimates the city lost 22,000 federal jobs with a combined annual payroll exceeding $3 billion. City Administrator Kevin Donahue put the direct hit to local revenue at about $325 million this year, with larger losses expected in fiscal 2027.
Those job losses also ripple through the broader Washington region, where more than 50,000 positions disappeared, according to George Mason University’s Center for Regional Analysis. Businesses that served federal employees and their families felt the pinch as well.
Bowser framed the budget within three phases of her tenure: years of growth, the COVID-19 economic shock, and the post-pandemic recovery. She said the city must now adapt to the new fiscal reality without abandoning essential services.
Bowser has led the District since 2015. She announced in November 2025 that she would not seek a fourth term. In a letter to residents, she called the job “the honor of my life” and “an extraordinary opportunity to have a positive impact on my hometown.”
Federal oversight has long shaped D.C. budgets. Last year, Congress forced the city to revert to 2024 spending levels midway through the fiscal year, cutting $1.1 billion from a previously balanced plan.
Council approval will determine whether Bowser’s final spending blueprint survives intact or undergoes further changes before the next mayor takes office.
Chairman Phil Mendelson said the council expects to vote on the budget in June.
The Associated Press contributed to this report.
From The Epoch Times