Official First Vote Statement on the FY 2027 Budget

June 9, 2026
Blog Post

DC Action applauds Chairman Phil Mendelson and the DC Council for restoring $99 million for child care and early childhood development programs, protecting funding for out-of-school time, as well as restoring $1.5 million in funding for the District’s youth homelessness system.

Today, the DC Council took its first vote on the District’s Fiscal Year 2027 budget. While final votes will not occur for another two weeks or more, the budget approved today represents significant improvement over Mayor Bowser’s proposed budget, reducing some of the Mayor’s most egregious  cuts to programs children, youth, and working families count on across the District. While DC Action’s full asks were not met, the Council was able to restore an impressive nearly $100 million in early education funding and reverse many, many other cuts – both large and small – detailed in the table below. We applaud their efforts and urge them to go further before final adoption of the budget.    

This budget progress reflects the sustained and collective advocacy of our coalitions and thousands of residents who called, emailed, testified, rallied, and met with their councilmembers all spring to demand a budget that reflects our values; DC Action’s coalitions and supporters generated more than 3,000 emails to the DC Council, delivered over 150 testimonies, and sustained a weekly presence in the Wilson building with nearly 300 community members participating in walk-arounds and lobby days to keep up the pressure to restore critical funding for early childhood educators, child care subsidies, and services for youth experiencing homelessness, while also protecting investments in out-of-school time and many other essential programs. The DC Council’s funding fixes will make a real difference in the lives of the District’s kids and families, even as more work remains to be done.

It is important to note, however, that many of the DC Council’s restorations rely on one-time funding. Unless lawmakers act to secure multi-year funding, these programs will again be at risk next year. Families deserve better. The District has the resources to pass a more responsible and resilient plan for recurring funding, but doing so requires ensuring that our wealthiest households (those earning $500,000+/annually) and profitable corporations avoiding District taxes pay their fair share through enactment of a Wealth Proceeds Tax and a Business Activity Tax. Lawmakers should adopt these proposals on second reading of the budget to close the remaining funding gaps and protect essential programs for years to come.

Despite today’s progress, there are still too many programs left underfunded: the Pay Equity Fund, Temporary Assistance to Needy Families, Paid Family Leave, school-based behavioral health, the DC Health Care Alliance, Emergency Rental Assistance Program, housing vouchers, and more. This is unacceptable and we will continue advocating for their full restoration ahead of the second vote. We call on the DC Council to listen to residents and advocates and pass a final budget that advances equity, stability, and opportunity for the District’s children, youth, and working families.

Detailed Summary of Changes to the Fiscal Year 2027 Budget

 

Policy/Program DC Action Coalitions’ FY27 Asks  Mayor’s Proposed FY27 Budget DC Council’s Budget, First Vote
Early Childhood Educator Pay Equity Fund Return early educators to pay parity with DCPS teachers and fully fund PEF at $94.2M, including $12M for health care coverage. 

At a minimum, PEF salaries require $62M to keep pace with recent credential growth 

Budgeted $12M for HealthCare4ChildCare; eliminated $60M for educator salaries Funds PEF at $72M: protects $12M for HC4CC and restores $60M for salaries (one-time)
Child Care Subsidy Fund subsidy program at $177M to fully eliminate the need for a waitlist and support recent trends in enrollment growth Funded at $114M, requiring program enrollment to shrink by more than 2K children Funds at $153M
HealthySteps Protect $1.3M in grants for 2-Gen parent wellness and child development supportive services embedded in pediatric care sites  Eliminated; cut $1.3M  Restored at $1.35M (one-time)
Out-of-School Time Increase funding for OST grants by 10% for a total OST Office budget of $33M for FY27  Funds OST Office at $30.7M in FY27; significant reduction in out-years  Preserves OST Office at $30.7M (one-time)
New Heights Protect DCPS program that supports pregnant and parenting students; preserve $304K (3 FTEs) Eliminated; cut $304K Restored at $292,517 for 3 staff positions (one-time)
Youth Homelessness Increase funding for the youth homelessness system by 15% for a total youth system budget of $28M for FY27  Cut youth system by $1.5M from permanent supportive/extended transitional housing-youth and by $750K for transitional housing-youth  Restored $1.5M for PSH/ETH-youth and established a $450K grant for Sasha Bruce Youthwork drop-in center
Policy/Program Partner/Allies Ask Mayor’s Budget DC Council Budget
TANF Protect 15,000 kids in 7,000 of DC’s lowest income families from cuts to Temporary Assistance for Needy Families (TANF) benefits, requiring $20.5M to reverse harmful cuts planned for FY27. Kept all $20.5M in planned FY27 cuts to TANF benefits and eligibility. Restored $12.8 million to remove time limits, $1.5M to reduce sanctions, and $121K to expand TANF eligibility to pregnant 

persons beginning in the second trimester; failed to fund $5.6M for cost of living adjustments

Paid Family and Medical Leave Preserve program as is: 12 weeks of parental, medical, and family caregiving benefits at $1,190 maximum weekly wage replacement Eliminated all medical and family caregiving benefits for FY27 and cut weekly wage replacement to $1,000 for all benefit types Restored 10 weeks of medical leave, 6 weeks of family caregiving leave, and maximum benefits to $1,100/week
Child Tax Credit Protect the DC Child Tax Credit – a new tax credit – to provide lower and middle income families (households earning less than $119K) a $1,000 tax credit per child/year.  Eliminated; returning $56 million to District budget annually Unfunded in financial plan
CHAMPS Youth Crisis Services Child and Adolescent Mobile Psychiatric Service (ChAMPS) – Full restoration at $1.3 million Eliminated; cut $1.3M Restored at $1.3M (recurring)
School-Based Behavioral Health Protect access to school-based behavioral health services and clinicians by funding the program at $24.6M  Cut the program by $6.1M and eliminated partnerships with community-based organizations operating in-school services Restored $6.1M and opportunity for CBO partnerships
Alliance Health Care Coverage Restore health care coverage for DC residents ineligible for Medicaid/Basic Health Plan by removing the age and income limitations from the DC Health Care Alliance and ensure parity in health services such as dental and vision; fund Alliance at $54.9M for FY27. 

Ensure access to health care coverage for Lawful Permanent Residents with incomes 100-215% FPL who recently lost Medicaid coverage due to federal policy changes.

Funded access to dental and vision coverage and paused age limit for FY27 which would have brought Alliance eligibility for adults to 21, down from age 26 Added $38.3M to increase income eligibility to 138% of federal poverty for all adults, lifted moratorium on new enrollees, and restored access to more comprehensive health benefits package

Failed to restore coverage for those with incomes 139-215% FPL; failed to address coverage for Lawful Permanent Residents with incomes 100-215% FPL who recently lost Medicaid coverage due to federal policy changes.

ERAP Fund the Emergency Rental Assistance Program at $30M to support ~4,000 families Insufficiently funded at $7M Failed to enhance ERAP funding
Housing Vouchers Prevent 1,200 households from losing a housing voucher by replacing expiring federal Emergency Housing Vouchers (EHVs) and add   DCHA and fund 

300 new Permanent Supportive Housing vouchers for families and 300 for individuals; total ask of roughly $73M  

Maintained voucher funding cliff and funded no new vouchers  Added $28.2M to partially prevent the voucher cliff at DHS/ DCHA and added $7.4M to support some families exiting rapid rehousing 

Leaves 521 EHVs unfunded; households will lose voucher coverage in early 2027.Â