Mayor Muriel Bowser announced Tuesday that the District of Columbia will begin implementing a slate of “extraordinary measures” in response to looming budget shortfalls, following the GOP-controlled House’s failure to pass a legislative fix requested by President Trump.
Effective immediately, the District will freeze new hires and contract staffing, with limited exceptions. Overtime pay for work performed after April 27 will also be halted. In addition, Bowser has directed the city administrator to present a plan by April 25 for deeper cuts, including possible employee furloughs and facility closures — excluding public schools, essential health facilities, and shelters.
The fiscal tightening comes after Congress recessed last week without approving a bill needed to avoid significant funding cuts for the District. While the Senate swiftly passed the legislation last month and Trump voiced support, it stalled in the House amid conservative resistance.
At the center of the crisis is an omission in a larger spending bill passed in March. Unlike prior stopgap bills, this one failed to include a provision allowing D.C. to spend its locally raised revenue — primarily from taxes, fees, and fines — at approved 2025 levels. As a result, the city must operate under its 2024 budget, prompting officials to warn of a $1 billion shortfall in the second half of the fiscal year.
Though D.C. gained partial autonomy through “home rule” in the 1970s, Congress still approves its budget. To soften the blow, officials invoked a 2009 law to increase local appropriations by up to six percent.
“This is a stopgap. It doesn’t address the issue,” Bowser said Monday, stressing that hundreds of millions in local funds will remain unused unless Congress acts. “That’s money in the bank that we can’t spend on critical services.”
This story is developing. Check back for updates.
