D.C. is moving ahead with budget plans for the 2026 fiscal year despite the Republican-controlled Congress not taking action to fill a $1.1 billion hole it created for the city’s 2025 budget that kicks in later this year.
The mayor’s office announced on Monday that in the FY-26 budget, millions of dollars will go toward a Pre-Kindergarten program, a Pay Equity Fund for early childhood education and the D.C. Child Care Subsidy program.
“What we’re talking about is the FY-26 budget and no matter what happens in FY-25, we’re going to have an FY-26 balanced budget, and it will include these investments,” Mayor Muriel Bowser said while making one of the first announcements on her future budget plans, amid the crisis involving the current budget.
Right now, Congress holds the keys to the 2025 money, and Bowser said a fix is needed. She said she’s “still hopeful” the city will see one before potential cuts are made in the summer.
The Senate passed a fix which was supported by President Donald Trump for the budget hole, but the House didn’t bring that legislation up for discussion before it recessed on April 10.
Bowser invoked a 2009 law which allowed the city to increase spending by 6% and left the city with only a $410 million shortfall. It also froze planned spending in the city and called on her staff to consider what would need to be cut, if the funding isn’t restored.
While the city says the money is there for the 2026 fiscal year, some uncertainties remain, including if this year’s budget hole will be filled and if the city could see a similar scenario play out with the 2026 budget.
D.C. Deputy Mayor for Education Paul Kihn said the city must look ahead despite a “really tough budget environment” and invest in the three programs, which represent the foundations of education.
“As we look forward, of course, we’d love to continue funding these programs as we would love to continue funding all else across city government, but we know that if the economy is challenging, we’re going to have to make some tough trade-offs. And that’s why we’re also focused on ensuring that we continue to strengthen our economy,” Kihn said.
Kihn said education will remain a top priority for the city.
The Pre-K Enhancement and Expansion Program provides free, universal pre-K to all 3 and 4-year-olds in the city. Some of the programs are at schools, while others are run by community-based organizations.
The 2026 budget promises $19.5 million to keep the programs running in all eight wards.
The budget will also include $23 million toward renovating the former Department of Parks and Recreation building on 16th Street into pre-K classrooms.
The next budget will also earmark $70 million to fully fund the Early Childhood Educator Pay Equity Fund which helps preschools in the city offer equitable pay.
“We are the only place in the entire country that does this. We are ensuring that the salaries paid to our early child care workers equal those of the salaries paid in our public schools,” Kihn said.
Another $86 million will be set aside to provide subsidies for families at 300% of the federal poverty line.
Bowser said investing in schools is important for the District and as families see increased costs in their lives, offering programs helps not only keep people in D.C. but also encourages new residents in — something that is important for companies looking to bring in new hires.
“A lot of what we will talk about … is our growth agenda and how this budget will focus on addressing the changes to our economy that have been driven by federal workforce changes,” Bowser said.
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