WASHINGTON (7News) — The District’s budget debate is entering a new phase after D.C. Council Chairman Phil Mendelson said he has identified roughly $420 million in additional funding sources that could help offset deep spending reductions in the city’s upcoming FY27 budget.
Mendelson’s proposal comes as District leaders work to close a projected fiscal gap amid roughly $1 billion in proposed cuts across government services, driven by a mix of slower revenue growth, economic uncertainty, and ongoing questions about the stability of federal-related employment in the region. According to Mendelson, the additional funding would come from a combination of city reserves and efforts to adjust how D.C. aligns its tax code with federal tax law changes enacted in recent years.
That approach has already drawn scrutiny and political pushback from Republicans in Congress, who have challenged the District’s authority over certain tax and budget decisions…