Budget Oversight Hearing on DHS FY27 Budget – May 6, 2026
Budget Oversight Hearing on DHS FY27 Budget – May 6, 2026
On May 6, 2026, the Committee on Human Services, chaired by Councilmember Matt Fruman (Ward 3), held the second of two budget oversight hearings on the Department of Human Services (DHS) Fiscal Year 2027 proposed budget. The hearing examined the impact of proposed cuts on homelessness services, TANF, workforce development, domestic violence services, and other safety net programs. Director Rachel Pierre testified, joined by Chief Operating Officer Tanya Mortensen and Fiscal Officer Hayden Bernard. Councilmembers Zachary Parker (Ward 5), Wendell Felder (Ward 7), and Christina Henderson (At-Large) participated.
Discussion Items
Shelter Capacity and Bridge Housing
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Chairperson Fruman raised concerns about the Aston shelter, which is operating at 100 of its 190-bed capacity. He noted that 90 beds remain unused and that the FY27 budget includes $25 million in capital for a new bridge housing site (100 beds) but no operating funds for the Aston expansion. Director Pierre stated that the focus is currently on filling E Street (96 out of 170 beds) and that activating the Aston’s extra beds would require additional operating funds and executive authorization. The $25 million is for acquisition, not renovation, and no site has been identified. Councilmember Henderson noted that the new bridge housing site would likely take 2–3 years to open, similar to the Aston (purchased Jan 2023, opened Nov 2025).
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The net year-round low-barrier shelter capacity is projected to decline from 1,795 in FY26 to 1,672 by winter 2030, a loss of 123 beds. Director Pierre committed to replacing Adams Place (175 beds) before closing it, but no funding for that replacement is in the FY27 budget.
Housing Voucher Cost Pressures
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DHS faces a $12–15 million cost pressure in FY27 to maintain existing Permanent Supportive Housing (PSH) vouchers. Additionally, 514 households supported by federal Emergency Housing Vouchers (EHV) may lose funding after Q1 FY27, requiring an estimated $14 million for the full year or $12 million for nine months. The executive has committed to keeping all currently housed and matched families housed, but the source of funds (within DHS or elsewhere) is not yet identified. DCHA administers the EHV program, and DHS provides supportive services.
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The FY27 budget includes no new housing vouchers for families. DCHA received $22 million in the FY26 supplemental for PSH, but DHS’s FY27 budget only increases its PSH line by $389,000, leaving a $12–15 million gap.
TANF Step-Downs and Hardship Policy
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Beginning October 1, 2026, households receiving TANF for more than 60 months will see a 30% benefit reduction (step-down) in FY27, escalating to full elimination in FY28. The cost to reverse the FY27 step-down is $12.8 million; to restore full benefits in FY28 would be $43.2 million. A hardship policy is being developed in partnership with the National Academy of Public Administration and a working group; a report is expected May 18, 2026, with implementation by October 2026. Director Pierre stated that the step-down was a budget decision, not a policy one, and could be reversed if revenue improves.
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The FY27 budget cuts TEP (TANF Employment and Education) by $11.5 million. However, actual spending this year is $23.7 million, and the FY27 budget is $20.1 million, a net reduction of $3.6 million from projected spending. The number of TEP providers will drop from seven to five, based on performance. DHS is restructuring payment incentives to focus on job placement and retention rather than outputs.
Truancy Reduction Pilot
- The truancy pilot, now in 10 schools (expanding to 18 next year), costs $3.5 million in FY27. Director Pierre highlighted a 71% figure: of 185 students referred in the first year (four schools), 131 (71%) were not referred again in the second year because they had fewer than 15 absences. Chairperson Fruman expressed skepticism about the pilot’s effectiveness, noting small improvements in attendance and GPA declines. Councilmember Henderson questioned the low acceptance of case management (47% in year two) and the high cost per participant. Director Pierre defended the pilot as promising but preliminary, and noted that the mayor’s BSA would make it permanent. The pilot will shift to focus on 9th and 10th graders.
Domestic Violence Services
- The budget reduces domestic violence services by $700,000: $500,000 in one-time funding (not renewed) and $200,000 in efficiencies from shifting case management for EHV households to Medicaid-eligible services. Director Pierre said the $200,000 cut can be absorbed without service reduction. Chairperson Fruman raised concerns about potential conflicts with VAWA (Violence Against Women Act) if DHS mandates services; Director Pierre agreed to review the issue.
Interagency Council on Homelessness (ICH)
- The FY27 budget eliminates four DHS-funded positions at the ICH, leaving only the Executive Director. Chairperson Fruman noted this would impair the ICH’s statutory duties (e.g., winter plans, needs assessment). Director Pierre said the cuts were necessary to balance DHS’s personnel budget, but she hopes the ICH can continue to collaborate with DHS and the Community Partnership.
SNAP and EBT Changes
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HR1 requires DHS to pay 75% of SNAP administrative costs (up from 50%), adding $22.8 million to the FY27 budget. DHS is investing $2.12 million to transition EBT cards to chip technology, with full implementation expected by March 2028. An additional $1.6 million is needed in FY28. The supplemental budget includes $790,833 for error rate reduction projects (income verification, OCR, AI).
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DHS estimates 8,000–12,000 SNAP recipients are Able-Bodied Adults Without Dependents (ABAWD) who must meet work requirements starting June 1, 2026. The workfare program will have 1,800 slots, funded by $200,000 (50% federal match). A solicitation for host sites opens June 1.
Workforce Development and SNAP ENT
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DHS contracts with DOES for SNAP Employment & Training (SNAP ENT). In FY25, 375 participants were enrolled; 42 retained jobs (including 37 from Project Empowerment and 5 from Marion Barry Summer Youth). The average wage was $19,873. Director Pierre noted that SNAP ENT is a federal pass-through program, and DHS is not redesigning it this year.
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The Office of Neighborhood Safety and Engagement (ONSE) partnership placed 50 individuals in full-time jobs in FY25, with an average wage of $13,115.
Youth Homelessness and LGBTQ+ Programs
- The budget cuts $600,000 for the transgender/non-conforming workforce development program, eliminating it. Director Pierre said the program was not achieving desired outcomes and that DHS will require all youth transitional housing providers to have employment specialists. The six percent cut to youth homelessness services ($1.6 million total) is distributed across providers; DHS aims to avoid bed reductions but has no specific plan.
Case Management and Eligibility Staff
- DHS is eliminating 55 FTEs that were historically unfunded vacancies, “right-sizing” the budget. Director Pierre said this does not reflect actual reductions in staff because the positions were not fillable due to insufficient local matching funds.
Child Care Subsidy Waitlist
- Starting May 12, 2026, OSSE will implement a waitlist for child care subsidies. DHS determines eligibility and notifies families via email. OSSE administers the program. DHS is coordinating communication and directing families to Pre-K3/Pre-K4 and Head Start as alternatives.
CCNV Shelter and Clinic
- Councilmember Henderson raised concerns that the planned renovation of the CCNV shelter (New York Avenue) does not include space for a medical clinic, despite the current site having one. Director Pierre said negotiations with RICO (the landowner) are ongoing, and no final decision has been made; she supports having a clinic on-site.
Sunbucks
- The Sunbucks program (summer nutrition benefits for children) will be implemented in FY27 with a mix of federal, local, and donated funds. Costs are expected to decrease after the initial setup.
Key Outcomes
- No formal votes were taken; this was a hearing to gather information for the committee’s budget report.
- Chairperson Fruman indicated he will push to activate the 90 unused beds at the Aston, potentially by repurposing the $25 million capital for bridge housing to instead fund operating costs for the Aston and a replacement for Adams Place.
- The committee will consider restoring $500,000 in domestic violence one-time funding and $200,000 for the EHV case management efficiency.
- Director Pierre committed to providing the TANF hardship policy working group report to the committee by May 18, 2026.
- DHS will work with MPD to improve referrals for truancy cases to the pilot program.
- The committee will follow up on data for the truancy pilot, including control group comparisons and outcomes for different intervention levels.
- Director Pierre stated that the executive is committed to keeping all currently housed and matched voucher families housed, though the funding source for the $12–15 million PSH shortfall and the $14 million EHV gap is not yet identified beyond the executive’s general commitment.
Meeting Transcript
Recording in progress. Good morning, everyone. I am Matt Bruman, Word3 Councilmember and Chairperson of the Committee on Human Services. Today is Thursday. No. May 6th, and we are meeting in person in room 120 of the John A. Wilson building and virtually via Zoom. The time is now 9.05 a.m. Today we are conducting the second of two budget oversight hearings on the Department of Human Services, or DHS. During the first budget oversight hearing, we heard from public witnesses who sounded the alarm about the harm the proposed budget would do without significant changes. We heard from witnesses that for years the district was making significant progress in the war on poverty, reducing homelessness with more humane shelters and making bold investments in permanent housing while implementing a model version of TANF that put children first. We also heard that this budget r risks reversing that progress. It cuts domestic violence services by 700,000 at a time when domestic violence is surging. It deepens rather than prevents the cuts to TANF introduced in last year's budget. It underfunds existing permanent supportive housing so significantly that DHS would enter next year with 30 million to 40 million less than it needs to maintain our current number of vouchers, and it eliminates civil legal services funding, cutting dozens of district jobs while depriving hundreds of residents of council. I should say I know that this is not the ideal world from the perspective of the agency as well. We are in a very difficult budget time, and we're seeing the challenges of that budget reflected here. But it is clear what the challenges and the problems are. Today I want to discuss how we solve them. How we'll use today's hearing to explore how we can best deploy our limited resources to preserve our progress. How to protect bridge housing and shelter capacity, preserve legal and victim services, and mitigate harms from reductions in cash assistance. I look forward to the conversation. Before we begin, I would like to commend DHS for its work supporting the committee and educating the public this budget season. The agency's April 24th budget oversight forum with the Fair Budget Coalition answered many of my most pressing questions and made a complex agency budget accessible to people who are most affected by it. Before we proceed, I just have one note on logistics. Should any of my uh colleagues join? Council members will have 10 minutes each to ask a round of questions, and I will generally turn to my colleagues in the order they arrive. I invite you all to uh join us at the table in front of me, which you have uh considerately already done. It is the practice of this committee to place our government witnesses under oath. I invite all of our government witnesses, including staff in the audience who will be testifying later, to raise their right hands. Do you swear or affirm under penalty of law that the testimony you are about to provide to the Committee on Human Services is the truth, the whole truth, and nothing but the truth. I do. Thank you very much, Director, when you're ready, you may begin your testimony. Good morning, Chairperson Fruman, Committee members, Council staff, and members of the community. I am Rachel Pierre, Director of the DC Department of Human Services. I'm joined today by our Chief Operating Officer Tanya Mortensen and our agency fiscal officer, Hayden Bernard. Thank you for the opportunity to testify on the department's fiscal year 27 proposed budget. Mayor Bowser's Growth DC budget is a statement of confidence in our city's resilience, its strength and its continued growth. Human services represent more than 21% of the mayor's fiscal year 27 budget proposal. That reflects the administration's long-standing commitment to ensuring that growth reaches every resident. At DHS, our responsibility is to make that investment count by offering programs that move people towards stability, responsibly stewarding the safety net systems that this district residents depend on, and spending public dollars on programs that produce real and lasting outcomes. When I appeared before this committee for my confirmation last fall, I commended are committed to maintaining the progress we have made and strengthening our trajectory towards meeting the needs of all residents. In fiscal year 27, we will continue to deliver on that by reforming how families exit shelters so that transitions are sustainable over the long term. By partnering with community partners and customers to shape the temporary assistance for needing family hardship policies rather than designing them behind closed doors. And by improving workforce outcomes by strengthening the grant agreements that govern our employment program. Today, I want to tell you directly where we stand on each of those commitments and how the Grow DC budget will make it possible. I will begin with economic security and TANF reform. First, I'd like to address the changes to the TANF program reflected in DHS's fiscal year 27 proposed budget. Beginning October 1st, we will implement a step down for households who have reached received TANF benefits for more than 60 months. I recognize that this is difficult news, and it was not a decision we made lightly.
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