On March 8, 2025, House Republicans proposed a federal spending bill that could impose approximately $1 billion in budget cuts on Washington, D.C., jeopardizing essential services such as law enforcement and education.

This proposal marks a significant departure from a long-standing practice designed to safeguard D.C.'s budget and public services during federal funding negotiations, raising alarms about the city's financial stability.

In defense of the proposal, House GOP leadership claimed that D.C. would have enough funds to sustain operations for the next six months, countering concerns voiced by local officials.

The D.C. budget is currently under scrutiny, as Moody's has begun reviewing its AAA bond rating, which could have serious implications for the city's financial planning amid a projected $1 billion budget deficit over the next three years, exacerbated by federal workforce reductions and a sluggish real estate market.

D.C. Council Chairman Phil Mendelson criticized the bill, calling it nonsensical and arguing that cuts to public safety and education would not result in federal savings, since these services are funded by local taxpayer dollars.

Mayor Muriel E. Bowser's administration has expressed serious concerns about the 'devastating impacts' of the bill, warning that it could lead to layoffs and furloughs for teachers and police officers due to a mandated 16% cut in remaining funds.

If enacted, the bill would force D.C. to revert to its 2024 budget levels, significantly disrupting its current $21 billion budget and affecting services for the remaining six months of the fiscal year, which ends on October 1, 2025.

The proposed legislation aims to treat D.C. as a federal agency, requiring it to maintain spending at the previous year's levels, a shift from two decades of budget handling that provided stability during federal budget negotiations.

With a deadline looming, Congress must pass a spending bill by March 14, 2025, to avert a government shutdown; however, the GOP proposal is facing opposition from House Democrats and concerns from Senate Appropriations Committee members regarding its potential impact on D.C.

The proposed cuts could drastically affect D.C.'s budget, leading to a $67 million reduction for the police department, $192 million for D.C. Public Schools, $166 million for charter schools, and over $28 million for the Department of Human Services.