D.C. Council adopts FY2026 budget after last‑minute disputes, CFO standoff and multiple floor amendments

The Council of the District of Columbia approved the fiscal year 2026 Local Budget Act (LBA) and Budget Support Act (BSA) in final votes Monday, concluding a two‑day, high‑stakes budget process that included a public disagreement with the Chief Financial Officer (CFO), late amendments, and multiple floor votes to shift or restore funding.

Why it matters: The action sets the District’s spending and tax policy framework for FY2026. Lawmakers reshuffled tens of millions of dollars under pressure from the CFO and inserted a series of targeted restorations and policy changes that will affect programs from housing preservation to child care subsidies and public safety initiatives.

Chief points from the meeting - CFO dispute and appropriations reserve: Council Chair Phil Mendelson said he was forced to insert an amendment that rescinded roughly $29.98 million from the fiscal year 2026 budget into a new “Appropriation of Additional Resources” line after the CFO publicly demanded that the council leave roughly $244 million uncommitted to cover overspending and to replenish contingency reserves. Mendelson described the move as made "under duress" and argued it preserved the council's appropriating authority while meeting the CFO's certification requirement. - Contingency prioritization: Members negotiated an ordered list of priorities for how newly available revenues should be allocated if later revenue estimates and close‑of‑year overspending figures permit restoration. Councilmember Nadeau led a reordering of that contingency list on…