CM Allen Says City Faces Tough Economic Choices

CM Charles Allen briefing ANC6B last night on the DC Budget. 

CM Charles Allen on Monday morning in Spirit of Justice Park behind the Longworth House Office Building where FreeDC volunteers gathered before heading inside to lobby Members of Congress.  On Allen’s left are LaJoy Johnson-Law, Ward 8 State Board of Education member and Jacque Patterson, President of the State Board of Education. 

CM Allen Says City Faces Tough Economic Choices

by Larry Janezich

Posted April 9, 2025

Tuesday night, Council Member Charles Allen gave ANC6B a sobering report on the current economic situation facing the city. 

The city is facing two pressure points:  The inability of the US House of Representatives to fix their mistake in forgetting to authorize DC to spend $1 billion of its own to fund its operational budget for personnel and city services.  (If DC just went ahead and spent the money which has not been authorized it would be breaking the law.)  Second, the projected $1 billion shortfall in revenues over the next three years resulting from the thousands of residents who have lost their federal jobs and the economic fallout therefrom as the result of the administration’s efforts to reduce the size of the federal government.   

With respect to the first pressure point, Allen says he does not foresee the House acting to fix their mistake before it leaves for a two week recess at the close of business on Thursday.  Cuts in personnel and services will not start immediately but the undetermined date is fast approaching when the Chief Financial Officer (CFO) will inform the Mayor that she has to start making cuts.  The Mayor will have to submit a Supplemental Budget to the city council recommending those cuts.  Allen says, “To cut $1 billion from a $17 billion budget will be devastating…it will mean furloughs, personnel cuts, cuts in city operations and bus and Metro service.”  The police and fire departments will suffer hiring freezes – first responders could be furloughed.  Public and charter schools will be subject to staff and operational cuts – an extreme example is that the school week could be cut to 3 or four days. 

On Monday, Allen was part of the local advocacy group FreeDC’s call to action to lobby members of the House to pass the Senate-passed bill to fix the spending glitch which has been held for some three weeks at the Speaker’s desk.  This means under House Rules, it will take a two-thirds vote of the House (288) to take it up for consideration, and a simple majority of the House to pass it.  Though the bill has the support of the President and – reportedly – the chair of the House Appropriations Committee – it appears to be stalled by members of the Freedom Caucus.  Some speculate that some House members want to place conditions on DC as part of an agreement to move the bill forward. 

Allen’s team visited five Congressional offices.  He said the Republican offices were polite but he did not detect a sense of urgency.  He said he got a “warmer response from Democratic offices, but none of them felt like their hair was on fire about how this was a crushing and urgent problem”.   By the end of the day, FreeDC volunteers had visited 283 members’ offices. 

Regarding the second pressure point, Allen noted that the FY 2026 Budget process – which should have launched at the beginning of April – has not, because the Mayor is waiting on a resolution regarding  the $1 billion being held up in the House which otherwise will have to be taken into consideration in the budget for the next fiscal year. 

Assuming that gets resolved and the 2026 FY Budget process moves forward, it will have to take into account the CFO’s projection of $1 billion in lower revenue over the next three years resulting from a reduction in the federal workforce.  That will amount to a cut of around $300 million in each of the next three fiscal years.  Those cuts will come in the face of increasing costs.  Allen said, “We are facing a difficult budgeting…..We will be reducing city services and I don’t like doing that….But if the budget is balanced on the most vulnerable it is not a budget I can support.  There will be a reduction in services and benefits and every part of the city will have to be a part of what this tough moment will realize.”