Advocates urge Council to restore Child Tax Credit, baby bonds and guaranteed income funding cut in mayor's FY26 proposal

A large group of nonprofit leaders, community advocates and participants in local cash transfer pilots urged the Committee to restore the District Child Tax Credit, the Child Wealth Building ("baby bonds") program and guaranteed-income pilots in the FY26 budget.

Speakers described direct impacts from existing cash supports and pilots. "Since April 2024, I have received $500 a month through the mothers' guaranteed income pilot program," Morgan Hicks, a program participant, told the Committee. "Because of this extra income, I was able to get my driver's license... I was able to afford driving school... I was able to afford transportation to do family activities."

Advocates said the local child tax credit and baby bonds are targeted tools to reduce child poverty and the racial wealth gap. "Child poverty is anti-growth," Erica Williams, executive director of the DC Fiscal Policy Institute, said. She urged the Committee to reject the mayor's proposal to eliminate the District Child Tax Credit and to restore funding for the baby bonds program.

Witnesses proposed specific changes and revenue sources: expanding the credit to older children (up to age 18), raising the per-child amount (witnesses suggested $1,000 to $1,500), removing caps on the total number of children per family, and ensuring eligibility regardless of immigration status. Several witnesses, including the Fair Budget Coalition and Bread for the City, called for adopting progressive local revenue measures to pay for restorations: higher rates on capital gains, a surtax on incomes above $1,000,000, and a land-value tax or business activity tax to create dedicated revenue streams.

The Committee engaged with witnesses about the size and timing of restorations and asked for written testimony and fiscal analyses linking proposed tax changes to specific program restorations. No formal actions were taken during the hearing.