The Committee on Transportation and the Environment, chaired by Councilmember Charles Allen (Ward 6), met on Friday, May 22, 2026, at 1:11 PM in Room 500 of the John A. Wilson Building and via Zoom to consider and vote on the committee's report and recommendations for the Fiscal Year 2027 budget. Chairperson Allen opened the meeting describing an "incredibly challenging financial environment" for the District, noting that with $11.3 billion in available resources and $12.4 billion required to maintain FY26 spending levels, the District faced an initial funding gap of $1.1 billion. The mayor's proposed FY27 budget makes nearly $469 million in programmatic reductions, including a $95 million cut to the Universal Paid Leave Program, a $60 million cut to early childhood educator pay equity, and significant cuts to environmental and sustainability programs. The committee voted unanimously to approve its recommendations, which include partial restorations to the Sustainable Energy Trust Fund (SETF), the DC Green Bank, stormwater management, and other environmental and transportation programs.
FY27 Budget Overview for Committee Agencies
Committee's Recommended Restorations and Enhancements
RFK Campus and Transportation Investments
Councilmember Statements
Good afternoon, everyone. I'm Charles Allen, Ward Six Council Member and Chair of the Council's Committee on Transportation and the Environment. Today is Friday, May 22nd, 2026, and we are meeting in room 500 of the historic John A. Wilson building as well as over the Zoom virtual platform. The time is now 112 p.m. and I'm calling to order this additional meeting of the committee. For the record, I'd like to note that we have a quorum consisting of Council Members Henderson, Parker, Lewis George, Crawford, and myself. Today the committee is going to consider and vote on the report and recommendations of the Committee on Transportation and the Environment on the FY2 2027 budget for agencies under its purview. The formulation of FY27 budget took place amid an incredibly challenging financial environment for the district. The FY 26 approved budget was about 12 billion dollars. Due to inflation, even maintaining that spending level without any programmatic expansions would require about 400 million dollars in additional resources. But without budget adjustments, the district was projected to have a $700 million less in available revenue, excuse me, resources due to slower growth, a reduced federal workforce, and fewer budget surpluses to carry forward into the next fiscal year. So with $11.3 billion in available resources and $12.4 billion required to maintain FY26 spending levels, the district needed to overcome an initial funding gap of $1.1 billion. To address that gap, the mayor's FY27 proposed budget makes nearly $469 million in reductions to programmatic spending. Notable, spending cuts include a $95 million reduction to the Universal Paid Leave Program, a $60 million cut to early childhood educator pay equity fund, two critical supports for families and childcare workers. Other significant reductions include $127 million set aside for future pay increases for district employees, an $11 million reduction to the TANF employment program. And is and as discussed in more detail below, there were devastating cuts to the district's environmental and sustainability programs for the second year in a row. This grim financial picture sharply contrasts with the relatively complete funding that has been made available to the RFK campus redevelopment project. In total, FY27 proposed budget includes $320 million for transportation improvements around the RFK campus for pedestrians, cyclists, and drivers. The mayor's proposed budget adds over 200 million across the CIP to improve and reconfigure the roadways and bridges connecting to the site. There's also an additional $2 million in capital funding for FY27 for the bus priority project meant to explore a crosstown connection between Union Station and RFK. Just recently, the Washington Metropolitan Transit Authority teased its own ambitious plan for the Gold Line, a crosstown bus rapid transit project that could serve as a model for DDOT and create a much-needed east-west transit link fully across the district. Another $27 million has been identified for the construction of a new fire station to serve the campus and the surrounding neighborhoods. All told the district is just a few years away from opening a world-class sports stadium that will serve as the home venue for the Washington commanders and spur development in the surrounding neighborhoods. This deal cost the district well over a billion dollars in public funds and foregone tax revenue. But with the right planning envision, it can prove to be a sound investment if the promised neighborhood and year-round economic activity is as advertised. Critical to the RFK campus's success will come from the huge increase in demand being met by transportation options on event days and throughout the year that will allow tens of thousands of people to come and go without feeling the need to drive there. The committee is encouraged to see the mayor allocate the resources the project needs to be successful. It's just a shame this investment stands in such juxtaposition to the concurrent divestment from core services that help support working families and children. So let's turn to the agencies under this committee's purview. The mayor's proposed FY27 budget continues to backslide on the very policies that have enabled the district to become more resilient, healthy, and sustainable as a city. This is best represented by the proposed cuts to the Department of Energy and Environment, or DOEE. The mayor's proposed FY27 operating budget for DOEE is $181.6 million, or a $28.6% decrease from the FY26 approved budget of $254.2 million. Where other agencies received an average of 3.8% of a reduction, DOE will have over a quarter of its budget slashed again, combined with the cuts it received in FY26, DOE's annual budget will have shrunk by $137 million or just shy of $45% over the last two fiscal years. So where do these cuts land within the agency? It starts with an $80.6 million diversion from the fund to pay the district's energy costs, which was baked into the budget based on the mayor's choices in prior years. Combined with last year's sweep of $70 million, the district has lost $150.7 million in total SETF funding for sustainable energy and utility affordability investments. DC SEU relies on this funding to provide benefits through Solar for all, implement the Healthy Homes Program, and continue its successful rebate program. Every public dollar invested in the DC SEU yields a six to one return in energy cost savings for all ratepayers, not just the household receiving the investment or rebate. These cuts, if not reversed, will mean a direct loss of jobs for staff at the DCSEU, jobs with their contractors, and their workforce development program. The continued diversion of SETF funds is resulting in higher bills for the district residents for our local businesses, and it leaves them vulnerable to regional grid mismanagement and what feels like an unending number of data centers in Virginia. There are not many levers we can pull at the local level to head off those big increases in electricity and gas, but I will say this. Residents who have been able to tap into solar on their roof or through a community project or who have been able to upgrade their home to be far more energy efficient, are feeling a lot less of those cost increases. The SCU is the place where we ensure those benefits aren't reserved only for the wealthy that are able to pay for it. Identifying additional funds to reallocate to the SETF has been and will remain a priority for this committee. The committee identified $2 million in FY27 and $11.2 million across the financial plan and restoration for the SETF. The committee specifically directs this enhancement to the SETF to support the DC SEU. The FY27 budget as proposed also once again uses funding needed for core services to meet federal clean water requirements, misdirecting $4.4 million in DOEE stormwater management funding towards routine street sweeping and leaf collection at the Department of Public Works. Please note, you're not getting more street sweeping. You're just getting the same level, but these dollars are being shifted.