The Washington D.C. Council has finalized a $21 billion budget amidst significant financial strains exacerbated by declining revenues and the cessation of federal pandemic aid. This budget, described as one of the most contentious in recent history, includes provisions aimed at addressing housing needs but has drawn criticism for its tax increases and funding allocations.

Key aspects of the budget include a hike in the payroll tax on businesses, originally intended to fund a paid family leave program but redirected towards broader budgetary needs. Additionally, the property tax rate will increase for homes valued above $2.5 million.

A notable allocation in the budget is the funding for 600 additional housing vouchers aimed at preventing homelessness, although this comes at the cost of diverting $1 million from an anti-truancy initiative proposed by Mayor Muriel Bowser. The Council defended these changes, arguing that the Mayor’s initial budget proposal risked severe cuts to essential safety net programs.

Mayor Bowser expressed dissatisfaction with the Council’s decisions, voicing concerns about potential future tax hikes or service cuts. Her objections centered on the Council’s refusal to make deeper spending cuts as part of the budgetary process.

In addition to housing and tax policies, the budget restores funding for projects such as a youth sports complex and a new D.C. jail, initiatives previously slashed in the Mayor’s proposal.

The Council also moved to expand D.C.’s sports gambling program beyond its current limitations, potentially opening up the market to more operators.

This budgetary approval highlights ongoing tensions between the Council and the Mayor over fiscal priorities and the allocation of resources in the nation’s capital.