In This Issue:

• DC’s Tech Frontier: The case for autonomous vehicles
• FY27 Budget: Mayor refuses to sign the Council’s FY27 budget
• Tax Watch: More congressional interference + short-sighted tax policy 
• Model Homes: Lessons from around the country on increasing housing supply

Embracing DC’s Tech Potential: The Case for Autonomous Vehicles

DC has never had a reputation for being on the cutting edge of technology, but we can change that — and should — to diversify our local economy beyond the federal government. Approving the commercial operation of autonomous vehicles (AVs) presents an opportunity to signal that the District of Columbia is ready to embrace and enlarge our fast-growing tech sector while creating jobs of the future for District residents.

The Benefits of AVs:

• Safety: Statistically, autonomous vehicles are far safer than human drivers; they do not speed or drive distracted.
• Accessibility: AVs offer significant benefits to seniors, non-drivers, and residents with disabilities who need transportation.
• Job Creation: A successful AV industry will create hundreds of full-time jobs with good benefits for District residents in maintenance, testing, monitoring, and facility operations

The Current Bill: On July 13th, Councilmember Charles Allen (Ward 6) held a hearing for his bill, the Autonomous Vehicle Deployment Authorization Amendment Act of 2026 . This legislation creates a framework for robotaxis to operate commercially in DC by January of 2028. The bill taxes AVs through a “vehicle miles traveled” (VMT) fee for AVs, noting that since they are electric, they will not contribute to traditional gas taxes. The legislation also caps initial AV fleet size at 200 vehicles.

Room for Improvement: Councilmember Allen’s bill is a strong start, and he deserves credit for taking on a challenging issue. We see two changes that would reduce costs and make rider access more equitable. First, the 200-vehicle fleet cap is too low; we recommend a cap of 1,000 vehicles at the lowest or remove caps altogether. Limiting vehicle supply will only increase AV taxi service costs and limit access in neighborhoods currently underserved by existing rideshare services. Second, we worry that a VMT will significantly increase the cost of robotaxi services and be passed onto riders. We encourage the Council to align AV tax schemes to cost parity with other rideshare services.

Mayor Doesn’t Sign FY27 Budget; Structural Problems Persist

Sending a clear warning signal as she prepares to leave office, Mayor Bowser this week declined to sign the FY27 budget passed by the DC Council, warning that the city faces an $837 million fiscal cliff. While the budget will still become law without her signature, the Mayor’s refusal to endorse the Council’s choices echos the deep concerns we expressed following the June budget votes.

As we noted in our June newsletter analyzing the budget, the District continues to resist taking its medicine — that is, making the hard choices necessary to align recurring revenue with recurring expenses in a contracting economy. Opportunity DC will continue to advocate for a return to sustainable budgeting that prioritizes the District’s long-term prosperity and the sustainability of social programs.

Councilmembers will be heading out for their annual vacation soon. When they return in September and the fall election season ramps up, we hope our representatives and candidates come ready to address the District’s long-term economic challenges with renewed focus.

Tax Watch: Congress Meddles & Council Pushes Tax Hike

The District’s tax policy is currently being squeezed from both sides. On the federal level, Congressional Republicans are moving forward with legislation that would require federal approval for any new taxes implemented in the District. Opportunity DC opposes this clear threat to Home Rule.

Locally, the threat of new anti-competitive taxes remains on the horizon. While it was excluded from the DC Council’s FY27 budget, Councilmember Brianne Nadeau (Ward 1) introduced a stand-alone “passive-income tax” bill before she leaves office in December.

• The Proposal: A 3% surtax on passive income, such as capital gains, dividends, interest, and annuities, for individuals earning over $400,000 and couples earning over $500,000.
• The Data: IRS migration data found that DC lost a net 14,233 households making more than $150,000 between 2019 – 2022. A 2025 study found that higher-income households are moving to states with lower taxes at a much higher rate since COVID.
• The Problem: Increasing taxes on households with the means to move, and who have been increasingly moving to lower-tax areas, could lead to less revenue over time to fund the District’s social safety net. (Ward 7 ANC Commissioner Ashley Schapitl does a great job explaining on her excellent local politics Substack, Capital Commonsense , how the District gets money to fund services and programs and why our revenue collection system is especially dependent on residents with higher incomes .)
• The Solution: DC lawmakers should focus on growing the economy to raise revenue and reallocate spending for programs that haven’t measurably reduced poverty or achieved their stated policy goals. 
• Timeline: A public hearing is expected this fall.

Model Housing Policies to Consider in DC

Opportunity DC is part of a growing national pro-housing supply movement. We are closely watching initiatives in other states that could inform the District’s approach, particularly as the incoming administration tries to deliver on building 72,000 units of new housing in 5 years:

• San Francisco: Recent changes there have dramatically decreased inclusionary zoning requirements (from 15% to 5% of units) and established drug-free policies for certain permanent supportive housing voucher units.
• Massachusetts: Presenting a clever contrast to NIMBY opposition to more housing, the “ Yes in God’s Backyard ” (YIGBY) initiative allows religious institutions to build multi-unit housing on land they have owned by right, instead of the far lengthier PUD (Planned Unit Development) process.
• Federal Action: We are tracking implementation of the bipartisan federal housing legislation that became law this summer. It aligns with our local mission to unleash innovation and lower production costs.

We hope you get some time to enjoy summer — in DC or elsewhere. 

Malcom Fox
Executive Director