Mayor Bowser Highlights Key Investments in FY2026 Grow DC Budget

(Washington, DC) – Today, ahead of the new fiscal year starting on October 1, Mayor Muriel Bowser highlighted the investments included in her Fiscal Year 2026 Grow DC budget. The FY26 Budget represents strategic investments to drive economic growth, part of the Mayor’s transformational growth agenda for Washington, DC, which is dedicated to ensuring the District remains a great place to live, work, and do business.

Education 

• $2.8 billion invested in our DC Public Schools (DCPS) and public charter schools through the District’s per-student funding formula
• $270 million to support pay increases for DCPS and public charter school teachers
• Full funding for core childcare programs, including $85 million for the Child Care Subsidy Program, $72 million for the Pay Equity Fund, and $19.5 million for the Pre-K Enhancement and Expansion Program (PKEEP) 
• Over $2 billion in major capital investments in schools, including:
  • $2 billion for 30 school modernizations 
  • $92 million for small capital improvements 
  • $47 million for swing space improvements to accommodate students while their schools are being modernized
  • $7 million to renovate the Advanced Technical Center 
  • $6 million for IT improvements, including new A/V equipment in auditoriums and other large spaces, Wi-Fi and other network improvements, and data infrastructure systems
  • $64 million to provide opportunities for higher education at the University of the District of Columbia 
• $11 million to support innovative transportation methods for students with disabilities 
• $3 million to continue evidence-based high-impact tutoring 
• $550,000 to connect education and workforce data in the Education Through Employment Data System 
• $6 million to continue the DC School Connect program to safely transport students in Wards 7 and 8 to school
• $190 million in major capital investments to enhance recreational opportunities in DC’s top-rated parks system 
• $185 million in major capital investments to modernize DC Public Libraries ($166 million) and improve community parks and plazas ($19 million) 
   

Public Safety & Justice   

• $343 million to provide a 13% pay increase for police officers 
• $30 million increase for the Metropolitan Police Department (MPD) to hire more officers and purchase crime fighting technology and equipment 
• $7 million increase for the DC Fire and Emergency Medical Services Department (FEMS) for critical firefighting gear and continuation of the life-saving pre-hospital blood transfusion program 
• $1.3 million to raise salaries of 911 and 311 call takers and for call taker recruitment and retention bonuses 
• $416 million in major capital investments to Keep Our City Safe, including: 
  • $35 million for correctional facilities 
  • $69 million for police facilities and equipment 
  • $254 million for patrolling and emergency response vehicles 
  • $9 million for FEMS facilities 
  • $49 million for emergency communications technology 
• $9.3 million for the Safe Passage, Safe Blocks program to ensure students can travel safely along approximately 120 predetermined routes in 12 priority areas   
• $1.5 million for Safe Commercial Corridors grants to support public health and public safety initiatives across the District    
• $750,000 for the Safe and Secure DC Nonprofit Fund to enhance the security and safety at the physical site(s) of nonprofit organizations located in the District of Columbia 

Health and Human Services   

• $7.4 million for the Department of Human Services to expand the Parent and Adolescent Support Services (PASS) truancy pilot program from 5 to 10 schools, including one middle school  
• $28.8 million for the FY26 portion of the Federal City Shelter (CCNV) redevelopment, $43 million for a new New York Avenue Shelter, and $5 million for the Naylor Road Shelter renovation 
• $8.3 million for the District’s animal care contract to provide critical animal rescue and animal control services and to open a new shelter and care facility in DC Village
• $300,000 to increase capacity in the Department of Aging and Community Living’s (DACL) Safe at Home program and serve seniors currently on the waitlist 
• $425,000 to expand DACL’s Home Delivered Meals Program to another 150 seniors 
• Enhance the Child and Family Services Agency’s budget by $647,000 to fully fund a transportation contract that provides transportation services to children in foster care 
• Enhance the Department on Disability Services’ budget by $8.3 million to support increased utilization of services for individuals with developmental disabilities 
• $769,000 to the Department of Behavioral Health to fully fund a contract for court-ordered care for traumatic brain injuries 
• $2.2 million to fund sickle cell anemia coverage and treatment 
• $8 million increase in Medicaid reimbursement rates for dentists, providing the first adjustments in 15 years 
• $5.6 million to support DC FLEX, a new exit pathway from the Family Re-Housing Stabilization Program (FRSP) and short-term family housing 
• $18.9 million increase to support the continuum of care for homeless services, including 24/7 access to shelter 
• $7.6 million for Permanent Supportive Housing for approximately 156 families to support exit pathways from FRSP 
• $5.1 million to provide an alternative site to assist with an exit and diversion path for families seeking services from the Virginia Williams Family Resource Center
   

Economic Development and Housing   

• Funds the Housing Production Trust Fund at $100 million 
• $1 million to continue the Heirs Property Program 
• $25 million for the Home Purchase Assistance Program 
• $820,000 to support the America250 celebration through planning and engagement 
• $750,000 to support small area planning, including implementation grants for Deanwood, Nannie Hellen Burroughs Ave NE, and Pennsylvania Ave SE, as well as the H Street NE neighborhood small area plan  
• $1.5 million for the Festival Fund to provide financial assistance for events that celebrate the culture of DC 
• $500 million capital investment for horizontal infrastructure funding to bring the Washington Commanders back home and kickstart a transformation of the RFK campus that will include housing, recreation, and commercial development 
• $258.2 million in capital investments to create and modernize affordable housing 
• $84 million in capital investments to provide economic development in neighborhoods 
   

Downtown 
Activating Spaces 

• Launch the Gallery Place Cultural District to support Downtown DC 
• $250,000 to support the Chinatown Renewal Initiative to rejuvenate and preserve the cultural identity of Chinatown 

 Transforming Spaces 

• Increase new office-to-housing conversions by expanding the Housing in Downtown program to Georgetown and Mt. Vernon Triangle 
• Gallery Square: $35.7 million to transform the National Portrait Gallery Plaza into a European-style plaza that will draw residents and visitors to businesses around the Chinatown-Gallery Place neighborhood 
• 8th Street Walk: Connect Gallery Square to the Convention Center by creating a green street that offers shade, seating, and areas for smaller activations 
• 7th Street South: $1 million to create dynamic public spaces between Gallery Square and Pennsylvania Avenue to attract more visitors from the National Mall into the Chinatown-Gallery Place neighborhood 

Accelerating DC’s Position as a Tech Hub 

• $2.4 million to create the DC Technology Ecosystem Fund to invest in business accelerators and incubators for start-up tech companies in DC 

Supporting Emerging DC-Based Tech Companies 

• Launched in 2024, the DC Venture Capital Program is leveraging $52 million in combined DC and private dollars to make equity investments in early-stage, DC-based tech companies 

Supersizing Business Attraction 

• The FY26 budget also includes $5 million to continue the Vitality Fund, the District’s most effective existing incentive to businesses within targeted, high-growth sectors to relocate, expand, or remain in the District 

Making it Easier to Stay in DC by Cutting Taxes and Supporting Local Businesses 

• No sales tax increase in FY26 
• Reduce Universal Paid Leave tax from 0.75% to 0.72% 
• Expand eligibility for Office of the Deputy Mayor for Planning and Economic Development retail grant programs 
   

Operations and Infrastructure 

• $687,000 for a Department of Public Works (DPW) swing shift crew to focus on collection of household trash/recycling, public litter cans, and bulk trash pickup 
• $4.6 million to support our Clean Corridors initiative with 80 DPW staff 
• $2.3 million to expand curbside composting to 12,000 households 
• $4.8 billion in major capital investments to maintain a safe and reliable transportation system, including: 
  • $1.8 billion for transit 
  • $1.5 billion for federal-aid streets and highways 
  • $527 million for local streets, sidewalks, alleys, and public spaces 
  • $431 million for major bridge rehabilitation and replacement 
  • $170 million for smaller scale safety and mobility improvements 
  • $126 million for trails 
  • $118 million for streetlights and DC Water 
  • $117 million to improve our environment, including:
  • $52 million for waterways 
  • $19 million for urban forestry 
  • $46 million for stormwater and flood mitigation 
• $324 million to maintain government operations, to include: 
  • $233 million for municipal government facilities 
  • $59 million for District fleet vehicles 
  • $32 million for IT and cybersecurity upgrades 

In addition to highlighting key investments in the FY26 Grow DC Budget, Mayor Bowser also noted the following legislative changes that will go into effect in the new fiscal year.

The Vacant to Vibrant Amendment Act of 2025 
The Vacant to Vibrant Amendment Act of 2025 takes effect on October 15, 2025. The law is the result of a successful collaboration between the Department of Buildings (DOB), community partners, and the DC Council to more quickly return vacant and blighted properties back into productive use. The law establishes measures to prevent extended vacancies, incentivizes property owners to minimize the duration of vacancies, creates tools for District government to better prevent vacancy and blight, and address violations of the law.  

Enhancing the District’s Private Security Camera Program 
The Office of Victim Services and Justice Grants will expand the Private Security Camera Incentive Program to cover interior cameras and glass break sensors for non-profits, religious institutions, and small businesses reporting less than $2.5 million in annual federal gross sales for FY26. 

Distracted Driving Safety Amendment Act of 2025 
On October 1, 2025, the Distracted Driving Safety Amendment Act of 2025 will go into effect. While the District already enacted a distracted driving law, this amendment requires a prohibition against holding—not just using—a cellphone or any other portable wireless communication device while driving. In addition, the amendment broadens the types of prohibited activities on portable wireless communication devices. This amendment will protect the public against increased distracted driving, which has become a public health and safety issue on District roadways.

Child Support Reform Amendment Act of 2025 
The Child Support Reform Amendment Act of 2025 increases the child support passthrough threshold for families with two or more children receiving Temporary Assistance for Needy Families (TANF), from $150 to $200. 

Fairness in Human Rights Administration Amendment Act of 2024 
Beginning October 1, the Fairness in Human Rights Administration Amendment Act of 2024 will go into effect, expanding the DC Human Rights Act of 1977.

Revised Building Conversion Permit Fee 
One legislative change that already took effect on September 3, 2025, stems from the Department of Buildings’ deliberate engagement with developers, owners, and stakeholders, and works to correct the misalignment of permit fees for residential conversions with a new Building Conversion Permit Fee that significantly reduces the cost of permits for residential conversion projects. The new fee structure makes residential conversions, particularly office-to-residential, more financially feasible, with a revised fee that is on par with permit costs for new construction projects. Combined with Mayor Bowser’s other investments in housing through her transformational growth agenda, this change will supercharge the District’s efforts to expand the city’s housing supply through converting properties to residential use.

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