Why It Matters
Congress approved $877.9 million in federal payments for the District of Columbia under the Consolidated Appropriations Act, 2026 (P.L. 119-75), signed Feb. 3, according to a new Congressional Research Service (CRS) report. That total exceeds the Trump administration's fiscal 2026 budget request of $728.5 million by $149.4 million.
The enacted law also ended the lapse in full-year appropriations that began at the end of September 2025 and approved D.C.'s fiscal 2026 local budget, allowing the District to spend locally raised revenues at the levels established in its budget and financial plan. The legislation underscores Congress' continuing control over the District's finances, including its authority to restrict how the local government spends its own money.
The Big Picture
Congress holds plenary constitutional authority over D.C., including the power to approve, modify, or disapprove the District's budget, covering locally raised revenues, through the annual appropriations process.
D.C. enacted the Local Budget Autonomy Amendment Act of 2012 (D.C. Law 19-321) in 2013, amending its home rule charter to allow the local budget to take effect after a 30-day congressional review period. A 2016 D.C. Superior Court ruling upheld the act, and the District has observed it since. In a 2016 analysis, the Government Accountability Office concluded that the act had "no legal standing" and that D.C.'s local budget autonomy "is a matter within Congress's discretion." Congress has continued to approve the District's budget through the regular appropriations process.
Congress considered several proposals to fund D.C. for fiscal 2026 before approving full-year appropriations on Feb. 3. The House Appropriations Committee reported H.R.5166, the Financial Services and General Government Appropriations Act, 2026, on Sept. 5, 2025. The bill would have provided $823.9 million in federal payments to D.C. but was never enacted. After federal funding lapsed Oct. 1, Congress passed H.R.5371 on Nov. 12, ending the 42-day government shutdown and providing temporary funding through Jan. 30. The measure also approved D.C.'s fiscal 2026 general fund and capital budgets for that period. The Senate subsequently introduced its appropriations proposal, S.3290, on Dec. 1. That bill would have provided $794.8 million in federal payments but received no further committee action. Congress ultimately enacted the Consolidated Appropriations Act, 2026, on Feb. 3, providing $877.9 million in federal payments and approving D.C.'s full-year local budget.
The enacted law retained recurring restrictions on the use of D.C. funds, including a prohibition on using District government funds for abortion services except in cases of rape, incest, or danger to the pregnant woman's life. It also maintained restrictions on federal funding for needle exchange programs in locations deemed inappropriate by local public health or law enforcement authorities, limitations on spending related to Schedule I substances, and restrictions on using federal funds to support certain efforts to secure D.C. voting representation in Congress. The Trump administration's fiscal 2026 budget request had proposed continuing these provisions.
Two bills, H.R.1089 and S.440, both titled the BOWSER Act, have been introduced in Congress. The measures propose repealing the District's Home Rule Act, a change that could substantially expand congressional control over local governance.
The Bottom Line
The enacted law authorizes D.C. to approve and execute specified local-fund reprogramming and transfer requests through Nov. 7, five days from today. The provision gives the District limited flexibility to adjust spending within its approved budget while preserving congressional oversight of certain federal-fund reprogramming decisions.
The law also includes provisions allowing D.C. to spend locally raised revenues during a lapse in fiscal 2027 appropriations or under a continuing resolution, subject to specified conditions. These protections could allow local government operations to continue even if Congress fails to enact full-year appropriations, although the applicable authority depends on whether a D.C. appropriations law or continuing resolution is in effect.
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