OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

DC Transportation & Environment Committee Marks Up FY27 Budget on May 22, 2026

Council of the District of Columbia — Friday, May 22, 2026
BodyWashington, District Of Columbia
SessionCouncil of the District of Columbia
DateFriday, May 22, 2026
StatusFILED
Video Record
0:00 / 47:39
Transcript — Verbatim
0:14

Good afternoon, everyone.

0:15

I'm Charles Allen, Ward Six Council Member and Chair of the Council's Committee on Transportation and the Environment.

0:19

Today is Friday, May 22nd, 2026, and we are meeting in room 500 of the historic John A.

0:25

Wilson building as well as over the Zoom virtual platform.

0:28

The time is now 112 p.m.

0:29

and I'm calling to order this additional meeting of the committee.

0:31

For the record, I'd like to note that we have a quorum consisting of Council Members Henderson, Parker, Lewis George, Crawford, and myself.

0:37

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.

0:48

The formulation of FY27 budget took place amid an incredibly challenging financial environment for the district.

0:54

The FY 26 approved budget was about 12 billion dollars.

0:57

Due to inflation, even maintaining that spending level without any programmatic expansions would require about 400 million dollars in additional resources.

1:04

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.

1:17

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.

1:27

To address that gap, the mayor's FY27 proposed budget makes nearly $469 million in reductions to programmatic spending.

1:34

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.

1:45

Other significant reductions include $127 million set aside for future pay increases for district employees, an $11 million reduction to the TANF employment program.

1:53

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.

2:01

This grim financial picture sharply contrasts with the relatively complete funding that has been made available to the RFK campus redevelopment project.

2:08

In total, FY27 proposed budget includes $320 million for transportation improvements around the RFK campus for pedestrians, cyclists, and drivers.

2:15

The mayor's proposed budget adds over 200 million across the CIP to improve and reconfigure the roadways and bridges connecting to the site.

2:22

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.

2:30

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.

2:42

Another $27 million has been identified for the construction of a new fire station to serve the campus and the surrounding neighborhoods.

2:48

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.

2:57

This deal cost the district well over a billion dollars in public funds and foregone tax revenue.

3:02

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.

3:10

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.

3:21

The committee is encouraged to see the mayor allocate the resources the project needs to be successful.

3:25

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.

3:32

So let's turn to the agencies under this committee's purview.

3:35

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.

3:42

This is best represented by the proposed cuts to the Department of Energy and Environment, or DOEE.

3:47

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.

3:59

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.

4:17

So where do these cuts land within the agency?

4:19

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.

4:27

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.

4:37

DC SEU relies on this funding to provide benefits through Solar for all, implement the Healthy Homes Program, and continue its successful rebate program.

4:45

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.

4:55

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.

5:04

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.

5:15

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.

5:21

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.

5:31

The SCU is the place where we ensure those benefits aren't reserved only for the wealthy that are able to pay for it.

5:37

Identifying additional funds to reallocate to the SETF has been and will remain a priority for this committee.

5:42

The committee identified $2 million in FY27 and $11.2 million across the financial plan and restoration for the SETF.

5:50

The committee specifically directs this enhancement to the SETF to support the DC SEU.

5:55

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.

6:09

Please note, you're not getting more street sweeping.

6:11

You're just getting the same level, but these dollars are being shifted.

6:14

This represents yet another dramatic disinvestment from climate and environmental commitments in district history.

6:20

To ensure the district has adequate funding for stormwater management as well as our MS4 compliance, the committee proposes a subtitle Adjusting the Stormwater Fee to Match Inflation Costs, which would raise about $6 million each fiscal year.

6:33

Compared to DOEE, the mayor's proposed FY27 operating budget for the Department of Motor Vehicles stands at $70.8 million, a 4% decrease from its FY26 approved budget, while the FY27 operating budget for the District Department of Transportation is $151.1 million, representing a $25.1 million or $14.3% decrease from its FY26 levels.

6:52

Much of the reductions are associated with policy choices made in last year's budget, such as the cessation of the DC streetcar services, with many of DDOT's core programs preserved.

7:02

For the newly added agencies under the committee's purview, the Public Service Commission and the Office of People's Council, their proposed funding remains relatively flat.

7:09

Lastly, the Green Finance Authority, also known as the DC Green Bank, is flat funded at $3.75 million through its fund, though its funding has been reduced in prior fiscal years.

7:18

To be sure, the committee is pleased these agencies were spared from harsher cuts, but for a budget that has been called belt tightening year by multiple agency directors, DOEE has once again been asked to contribute more than nearly any other agency across all of our government.

7:32

In terms of the FY 27 Budget Support Act, in addition to the budgetary choices summarized above, the FY27 Budget Support Act would also reverse the district's progress on several key environmental initiatives.

7:42

Specifically, the proposed BSA extends the requirement for meeting performance targets for the second cycle of the Building Energy Performance Standards, or BEPS program, delays issuing final net zero regulations that would require all new construction or substantial improvements to be built to net zero standards by one year, and it would delay the deadline by which the district government, public transit agencies, and large private commercial operators must cease buying gas-powered vehicles or transition to an electric fleet.

8:07

The committee has, for its part, attempted to undo much of the harm suggested in the proposed budget.

Discussion Breakdown — Share of Meeting
Miscellaneous█████████████████████████████████████████████60%
Transportation Safety███████████████20%
Environmental Protection████████11%
Procedural████5%
Water And Wastewater Management███4%
Summary of Proceedings

DC Transportation & Environment Committee Marks Up FY27 Budget on May 22, 2026

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.

Consent Calendar

  • The committee voted unanimously to approve the report and recommendations on the FY27 budget for agencies under its purview and the recommendations concerning the Budget Support Act.

Discussion Items

FY27 Budget Overview for Committee Agencies

  • The mayor's proposed FY27 operating budget for the Department of Energy and Environment (DOEE) is $181.6 million, a 28.6% decrease ($72.6 million) from the FY26 approved budget of $254.2 million. Combined with FY26 cuts, DOEE's annual budget will have shrunk by $137 million (nearly 45%) over two fiscal years.
  • Key cuts include an $80.6 million diversion from the Sustainable Energy Trust Fund (SETF) to pay the District's energy costs, adding to last year's $70 million sweep for a total loss of $150.7 million in SETF funding.
  • The mayor's budget also misdirects $4.4 million in DOEE stormwater management funding to street sweeping and leaf collection at the Department of Public Works.
  • The Department of Motor Vehicles (DMV) operating budget is $70.8 million, a 4% decrease. The District Department of Transportation (DDOT) budget is $151.1 million, a $25.1 million (14.3%) decrease.
  • The FY27 Budget Support Act (BSA) proposes to extend the performance target deadline for the second cycle of the Building Energy Performance Standards (BEPS), delay final net zero regulations for new construction by one year, and delay the deadline for government, transit, and large commercial fleets to cease buying gas-powered vehicles.

Committee's Recommended Restorations and Enhancements

  • Chairperson Allen described the committee's recommended budget as centering on reducing energy costs and promoting sustainable redevelopment.
  • The committee adds $2 million in FY27 and $11.2 million across the financial plan to the SETF to support the DC Sustainable Energy Utility (DC SEU). Chairperson Allen noted that every public dollar invested in the DC SEU yields a six-to-one return in energy cost savings for all ratepayers.
  • The committee identifies $1.5 million for the DC Green Bank to cover debt service on the District's first green bond.
  • The committee strikes the Net Zero Energy Code Amendment Act of 2026, which would have delayed net zero requirements for new construction by one year.
  • The committee adds $126,000 to DOEE for a new position to support condo and co-op buildings with solar installation and BEPS compliance.
  • The committee adjusts the stormwater fee for inflation (a $1.36 per month increase for the average resident, from the current $2.67) to generate an additional $6.6 million annually for stormwater management, addressing federal MS4 permit compliance and avoiding potential penalties of $25,000 per day.
  • The committee fully reverses the mayor's sweep of $600,000 from the Anacostia River Cleanup Fund, including full restoration of wildlife rehabilitation grant funding.
  • The committee fully funds the Tree Preservation Enhancement Amendment Act of 2026 and accepts a $200,000 transfer for a greenhouse gas emissions study.
  • The committee restores $250,000 for the Office of District Waterway Management and the Waterways Commission and identifies $132,000 for implementing the Youth Advisory Council on Climate Change and Environmental Conservation Establishment Act of 2025.

RFK Campus and Transportation Investments

  • The mayor's proposed budget includes $320 million for transportation improvements around the RFK campus, with over $200 million across the CIP for roadways and bridges, and $27 million for a new fire station.
  • The committee approves $200 million in capital funding for roadway improvements, $18.2 million for bridge improvements, and $2 million for the bus priority project for a comprehensive east-west crosstown connection linking RFK to the Benning Road Metro station.
  • The committee approves $794 million to fully fund the District's portion of WMATA, including $6.3 million for bus service to fill gaps from the "Better Bus" redesign.
  • The committee adds $376,000 to increase the adult learner transit subsidy from $70 to $100 per month.
  • The committee provides $250,000 for e-bike rebates and $385,000 for expanding the DC Trail Ranger program.
  • Capital Bike Share funding is preserved; the program set a new ridership record in 2025 with nearly 6.7 million rides.
  • The committee allocates $600,000 in FY27 for grants under the Plaza Act (Public Life and Activity Zones Amendment) to support street closures for pedestrian plazas.
  • The committee approves an additional $9.5 million for the DMV's destiny replacement project and $1.6 million for a digital credentialing initiative.
  • The committee approves three subtitles extending EV tax benefits: extending the gas-powered-to-EV conversion tax credit and the alternative fuel tax credit from 2026 to 2035, and exempting EV infrastructure from personal property taxes. The committee also reduces the mayor's proposed five-year delay of the zero-emission vehicle requirement for public buses and large commercial fleets to three years, aligning with WMATA's electrification plan.

Councilmember Statements

  • Councilmember Lewis George thanked Chairperson Allen for mitigating cuts to DOEE, noting that a 43% reduction over two years "points to something deeply troubling." She expressed concern about the SETF sweep, the need for lead pipe replacement, and support for the committee's restorations. She said she would vote yes.
  • Councilmember Parker thanked the committee for reversing "cynical cuts" to the SETF and DC Green Bank, citing rooftop solar at the Howard Theater and net-zero affordable housing on North Capitol Street. He highlighted funding for the Tree Preservation Act, the Youth Advisory Council, intersection improvements on South Dakota Avenue ($750,000), quick-build Vision Zero projects on Rhode Island Avenue ($750,000), and design for the Metropolitan Branch Trail connection ($430,000). He asked for confirmation on $6.3 million in WMATA bus service funding, which Chairperson Allen confirmed remains, noting that WMATA will reverse its board vote to strike the funds if the council keeps the funding in the budget. Parker also asked about the stormwater fee impact on apartment buildings; Chairperson Allen explained it is a $1.36 per month inflation adjustment based on impervious surface area.
  • Councilmember Henderson expressed joy at the report, highlighting the adult learner transit subsidy increase, reversal of the Anacostia River Cleanup Fund sweep, funding for Kingman and Heritage Islands, green bonds, Capital Bike Share, and the RESALE Act pre-funding. She raised concerns about DOEE's Lead Safe Division budget, which may not have funding to provide filters for child development centers if lead is found. She also flagged reports that DDOT is allegedly adding lanes to Pennsylvania Avenue SE for the Pennsylvania and Minnesota Avenues project, contrary to safety goals. Chairperson Allen noted he had heard from the ANC and that Councilmember Felder had already spoken with the DDOT director about the matter.
  • Councilmember Crawford commended the committee for RFK infrastructure investments ($200 million+), overnight metro bus service, the adult learner transit subsidy increase ($70 to $100 per month), the DC Trail Ranger program, and RESALE Act funding. She expressed concern about DOEE cuts, noting the cumulative impact on seniors and fixed-income residents. She asked if Chairperson Allen had received a letter from a business consortium opposing the net zero code delay and about their concerns of overlapping construction codes. Chairperson Allen confirmed he received the letter, expressed skepticism about the 2027 construction code timeline, and stated he does not believe the net zero requirements should be delayed, noting they have been predictable and expected.

Key Outcomes

  • The committee voted unanimously to approve and block the report and recommendations on the FY27 budget for agencies under its purview and the recommendations concerning the Budget Support Act, with leave for staff to take technical, editorial, and conforming changes.
  • The committee's recommendations will now move to the full Council for consideration.
  • Chairperson Allen noted that further work remains on restoring SETF funds, continued engagement with WMATA on bus service, and addressing concerns about DOEE's lead filter funding and the Pennsylvania and Minnesota Avenue project design.

Meeting Transcript

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.

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