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D.C. Council

The DC Council's fall sprint begins today, with taxes, procurement and a fiscal deadline all in play

The Council gavels in its first fall session this morning with bond authorizations on the agenda, a capital-gains surtax headed for a hearing, and a shrinking window to act before several members leave office for good.

Why this matters to you

Whatever the next D.C. mayor inherits on January 2, 2027, will be shaped in large part by what happens inside the John A. Wilson Building over the next four months. Today the Council gavels in the first legislative meeting of its fall term, with a bond authorization on the agenda that keeps the city's capital projects funded, a procurement overhaul in committee that touches every contractor doing business with the District, and a proposed tax on capital gains income that could reshape the city's revenue picture for years. The window to act is short. Several members are leaving. And a quarterly revenue estimate due by September 30 will either open up room to maneuver or slam it shut.

What is actually on the agenda today

Chairman Phil Mendelson placed a Fiscal Year 2027 Income Tax Secured Revenue Bond, General Obligation Bond, and General Obligation and Income Tax Secured Bond Anticipation Note Issuance Authorization Emergency Declaration Resolution before the Council for today's meeting. Emergency resolutions of this kind require an immediate majority vote and take effect the same day they pass. Bond authorization votes rarely generate news coverage, but they are the legal mechanism that lets the District borrow money to pay for schools, roads, and public facilities already under construction. A failure to authorize would stall capital spending mid-project.

Also before the Council today: a Broadband Price Transparency Regulation Temporary Amendment Act, and emergency resolutions authorizing a contract modification with Flywheel Development, LLC under procurement agreement DCAM-21-NC-RFQuals-0001C. The Flywheel contract involves real-estate development work on publicly owned land, and the emergency posture means the Council is being asked to approve it without the usual 30-day review period.

The agenda also includes emergency approval of a contract modification with Crawford Consulting and Mental Health Service, Inc., as well as modifications to a contract with the See Forever Foundation, and a contract with Miles Away Charter, LLC. The See Forever Foundation runs the Maya Angelou Schools, which serve students who have been involved with the criminal justice system. Contract modifications of this scale, approved on emergency timelines, raise questions the Council has not yet publicly answered about how often the District is bypassing normal procurement review.

The procurement bill that could change how the District spends your money

That last point connects directly to the bigger fight happening in committee this fall. Bill 26-0594, the Contracting and Procurement Reform Amendment Act of 2026, would increase transparency and streamline the contracting and procurement process by creating a consolidated procurement portal, providing real-time tracking and checklists to ensure all documents are submitted, and improving coordination among the Office of Contracting and Procurement, District agencies, and vendors.

The bill would also transfer the Office of the Ombudsman of Contracting and Procurement outside the agency it is supposed to watch over, moving it to the City Administrator's office and giving it more responsibility. That is a structural change with real teeth: an ombudsman housed inside the agency it oversees has obvious independence problems. Moving it out is one of the more concrete accountability proposals the Council has advanced this session.

The bill was introduced by Councilmembers Janeese Lewis George, Brianne Nadeau, and Zachary Parker, and key provisions include establishing pay-for-performance contracting standards, creating a consolidated procurement portal with a forecasting module for anticipated solicitations, mandating data-sharing between the chief procurement officer and the Council, and reforming the District supply schedule.

"The District's contracting and procurement process can be inefficient and frustrating for everyone," Nadeau said. The bill had a public hearing on June 10 and remains in committee. A public hearing was held on June 10, and the bill remains in committee. Whether it moves before the end of Council Period 26 is now a real question.

The capital-gains surtax heads for a hearing

Nadeau is also pushing a separate piece of legislation that would hit closer to home for the District's wealthiest residents. Her Wealth Proceeds Tax is structured as a 3% surtax on passive income, including capital gains and certain other investments, for individuals making more than $400,000 per year or couples filing jointly making more than $500,000 per year, and it would apply only to the portion of income above those thresholds.

Nadeau's proposed tax would increase the city's General Fund by $200 million in the first year and over $100 million in subsequent years, according to preliminary estimates. Those are the District's own numbers, not yet vetted by the Office of the Chief Financial Officer in final form. The CFO's review, when it comes, will be the number that actually counts.

Nadeau has framed the stakes bluntly: "The bottom line is that we're facing a fiscal cliff. It took a lot of one-time funds to fix this year's budget and we won't have that option next year," she said. "We cannot keep asking the people who need the most to give the most, while asking those who have the most to give nothing more."

The Committee of the Whole will hold a hearing on several tax and revenue bills on October 16. Janeese Lewis George, the Democratic nominee for D.C. mayor, has said: "The people of the District deserve a full hearing where they can weigh in on the options before us." Lewis George would be the one governing under whatever tax structure the Council passes or fails to pass. She has not publicly endorsed the surtax itself.

A hard deadline nobody can extend

Every piece of legislation described above faces the same structural problem. With Council Period 26 nearing its conclusion and the November 3 general election approaching, the fall calendar is expected to be packed, and stakeholders should anticipate an accelerated legislative pace as members seek to advance priority bills before the end of the term.

Legislation that does not pass before the end of Council Period 26 will die and would need to be reintroduced. That matters more than usual this year because of who is leaving. The transition means several bill sponsors, including outgoing Councilmember Nadeau from Ward 1 and Councilmember Bonds at-large, will not return in the next Council period. Nadeau announced she would not seek a fourth term on September 25, 2025. If her bills do not clear before January, they go with her.

Lewis George's own council seat is also ending. She is running for mayor of the District of Columbia in the 2026 election as the Democratic nominee. Councilmember Janeese Lewis George won the Democratic mayoral primary and is the heavy favorite to become the next Mayor. A bill she co-sponsors on procurement reform dies if it does not pass before she takes the oath of office in January.

The revenue estimate due in eight days

Hanging over all of this is a quarterly revenue estimate from the Office of the Chief Financial Officer. The upcoming September quarterly revenue estimate is due by September 30 and will be closely watched. The FY 2027 Budget Support Act directs that the first $150 million of any FY 2026 revenue increase identified in the September or December forecasts be used to replenish District reserves necessary for cash-flow liquidity. In plain terms: if revenues came in higher than projected, the first $150 million does not go to new spending. It goes to refilling a reserve account that the Council drew down to balance this year's budget. Only what comes in above that threshold would be available for anything else. If revenues underperformed, the fall hearings on new taxes become considerably more urgent.

This fall will also be the first council election to use ranked-choice voting following the implementation of Initiative 83. Seven Council seats are on the ballot: Council Chair, two at-large seats, and Ward 1, Ward 3, Ward 5, and Ward 6. Members running for re-election are legislating and campaigning simultaneously, which historically produces a mix of ambitious floor speeches and very little floor action.

This is also DC's first general election using ranked-choice voting. Voters who have never used the system before will be asked to rank candidates in contested races on November 3. The Board of Elections has not yet published a voter education timeline for ranked-choice, and no member raised the issue at today's meeting.

What D.C. Residents Should Watch

  • September 30: The Office of the Chief Financial Officer releases its quarterly revenue estimate. The number sets the ceiling for any new spending or tax relief this fall. Watch cfo.dc.gov for the release.
  • October 16: The Committee of the Whole holds a public hearing on tax and revenue proposals, including Nadeau's Wealth Proceeds Tax (a 3% surtax on passive income above $400,000/$500,000 thresholds) and a proposed permanent Tax and Revenue Commission. Residents can testify in person or virtually.
  • B26-0594 (Contracting and Procurement Reform Amendment Act): Still in committee. If it does not move to a full Council vote before January, it dies. Residents who have tried to do business with District agencies, or who have watched no-bid contracts sail through on emergency approvals, have a direct stake in whether this bill passes.
  • Bond authorization: Today's FY 2027 bond authorization emergency resolution keeps the District's capital borrowing legal and current. If it fails, watch for a follow-up emergency session within days.
  • Ranked-choice voter education: With the November 3 general election now six weeks out and seven Council seats on the ballot under the new ranked-choice system for the first time, check dcboe.org for guidance on how to rank candidates on your ballot.

Sources: DC Council legislative agenda, September 22, 2026; ArentFox Schiff fall session analysis; Councilmember Nadeau's office, B26-0594 summary; Nadeau fall legislative preview; Nadeau Wealth Proceeds Tax introduction; NOTUS, DC Council budget coverage; The DC Line, July 9, 2026; LegiScan, B26-0594 bill status