Ioana Dorhoi, PhD – Government Relations and Public Affairs

By Ioana Monica Dorhoi, PhD

March 10, 2025

A newly proposed federal spending bill introduced by House Republicans could have devastating consequences for Washington, D.C., stripping the city of approximately $1 billion in funding. City officials warn that the legislation would lead to significant cuts across essential services, including law enforcement, education, and public welfare programs.

Reverting to 2024 Spending Levels

The bill, intended as a stopgap measure to prevent a government shutdown, would require D.C. to revert to its 2024 budget for the remaining six months of the fiscal year. This move, which would effectively nullify the city’s 2025 budget, has sparked widespread concern among D.C. leaders.

Mayor Muriel E. Bowser’s administration has warned of “devastating impacts,” highlighting the possibility of layoffs and furloughs for teachers, police officers, and other frontline workers. With the city forced to cut 16% of its remaining funds for the fiscal year, essential services could face severe disruptions.

An Unprecedented Federal Intervention

D.C. officials have long been accustomed to congressional oversight and budgetary restrictions, but this proposal represents a drastic new level of federal intervention. D.C. Council Chairman Phil Mendelson criticized the bill as “nonsensical,” arguing that it would reduce spending on vital public safety and cleanliness programs without yielding any savings for the federal government.

Despite D.C. being largely self-funded, with the vast majority of its $21 billion budget coming from local taxpayer dollars rather than federal funds, House Republicans have insisted on treating the city like a federal agency. Under the bill, all federal agencies must adhere to 2024 spending levels until new appropriations are passed, a requirement now extended to D.C. for the first time in two decades.

Projected Impact on City Services

If enacted, the budget reversion would affect nearly every aspect of city life:

• Public Safety: The Metropolitan Police Department would face a $67 million budget cut, potentially reducing the number of officers and limiting crime-fighting resources.
• Education: D.C. Public Schools would see a $192 million reduction, while charter schools would lose $166 million in funding.
• Homeless and Poverty Assistance: The Department of Human Services, which oversees critical programs for the homeless and low-income residents, would suffer a $28 million cut.
• Economic Recovery Efforts: The city’s planned $800 million investment in revitalizing downtown D.C. could be jeopardized, further weakening an already struggling economy.

Political and Economic Ramifications

The proposal arrives at a precarious moment for the District, which is already grappling with a projected $1 billion budget deficit over the next three years. The economic challenges stem from the lingering impact of the Trump administration’s federal workforce reductions, which hit D.C. particularly hard, as well as ongoing struggles in the commercial real estate sector.

Credit rating agency Moody’s recently announced a review of D.C.’s AAA bond rating, citing concerns over federal policy uncertainty and budget stability. If the city’s credit rating is downgraded, borrowing costs could rise, compounding financial difficulties.

Opposition and Uncertain Future

Democratic leaders at both the local and national levels have strongly opposed the GOP proposal. Senator Patty Murray, a top Democrat on the Senate Appropriations Committee, warned that the bill would have “significant negative consequences for D.C.” House Democrats have also rejected the measure, accusing Republicans of using the city as a political pawn.

While the bill’s passage remains uncertain in the closely divided House, D.C. officials are actively lobbying for the restoration of language that would allow the city to maintain its current budget. For over two decades, Congress has routinely included provisions in continuing resolutions that protect D.C. from disruptions caused by federal budget delays. The omission of such protections in the current bill marks a stark departure from precedent.

Conclusion

The House GOP’s spending bill represents one of the most aggressive federal intrusions into D.C.’s finances in recent history. If enacted, it would strip the city of nearly $1 billion in funding, jeopardizing public safety, education, and social services. With a potential government shutdown looming, the fate of D.C.’s budget hangs in the balance, leaving city officials scrambling to prevent a financial crisis. The coming days will be critical as lawmakers negotiate potential amendments and seek to shield the District from the bill’s far-reaching consequences.