In This Issue:
Council Back In Session: Fall legislative priorities and major economic development projects
Revenue Crunch: Why a BAT would cripple DC’s contracting economy
The Tech Frontier: AVs will make our streets safer, create new jobs, and promote transportation equity
Ballot Reform Passes: Right-sizing DC’s ballot initiative process

The Council Returns: Fall 2026 Agenda & Development Priorities

The DC Council returned from summer recess this month, and councilmembers are trying to move all the legislation they can before a new mayor and several new councilmembers take office in January. Chair Phil Mendelson announced that the Committee of the Whole will hold a public hearing on Oct. 16 to examine tax increases for the FY 2028 budget—you’ll find more about some of those ideas below.

Simultaneously, Mayor Muriel Bowser is pushing the Council to approve a slate of major economic development projects before the end of her term. The most significant project on Bowser’s priority list is the redevelopment of RFK Stadium. Last week, planners transmitted the final master plan for the 180-acre site—anchored by a new Washington Commanders stadium, 6,500 residential units, retail, and open space.

Raising Taxes on Small Businesses During a Local Recession Will Compound Our Challenges

The warning lights on the District’s budget continue to flash red, Chief Financial Officer Glen Lee reported recently. DC’s unemployment rate is nearly two percentage points above the national average, and the Council used one-time reserve funds to close last year’s budget gap. The local economy has been hit hard by post-pandemic remote work. Commercial property values have dropped to roughly half their pre-pandemic levels. Federal workforce reductions and ripple effects have resulted in the loss of nearly 80,000 jobs since 2020.

Despite this contraction, several councilmembers are proposing new tax hikes for the Oct. 16 hearing, including a business activity tax (BAT), a land value tax, and income and property tax increases. Some lawmakers view a BAT as a quick fix for the District’s fiscal gap. In reality, imposing a new tax on local enterprise during a recession would be economic suicide.

Why the BAT Is the Wrong Approach:

• It punishes job creators in a contracting economy: DC has lost 36,000 jobs over the past year alone. Taxing local business activity (revenue, not profit) in this environment discourages private investment and makes it harder for local companies to hire and retain workers.
• It’s expensive enough to do business in DC: DC businesses already face layers of regulation, high commercial rents, and a top-tier tax environment. Passing a Business Activity Tax without significant offsets—such as rolling back the payroll tax increase—will disproportionately hurt labor-intensive sectors like healthcare, retail, and hospitality.
• Business will flee to Maryland and Virginia: DC competes directly with neighboring jurisdictions for regional employers. Adding a new tax on business operations places District enterprises at a severe competitive disadvantage, risking an outflow of businesses and jobs across state lines—ultimately shrinking the tax base needed to fund DC’s social safety net.
• Proposed BAT is out of line with other states: DC Fiscal Policy Institute’s proposed BAT would raise taxes on most small businesses. Only businesses with less than $200,000 in annual revenue would be exempt. By comparison, Ohio’s BAT sets a small business exemption at $6,000,000. Finally, of the six states that have a BAT, none of them have personal income tax, corporate income tax, or general sales tax. DC has all three.

Opportunity DC strongly urges the Council to reject the Business Activity Tax and focus instead on unleashing economic innovation, streamlining regulations, and finding spending efficiencies.

Click here to tell your Councilmembers to support small businesses.

Autonomous Vehicles will Make DC Safer

The Council is currently considering Ward 6 Councilmember Charles Allen’s Autonomous Vehicle Deployment Authorization Amendment Act, which establishes a regulatory framework for commercial robotaxis (such as Waymo) to operate in the District by January 2028. Opportunity DC strongly supports bringing autonomous vehicles (AVs) to the District.

The Benefits of Autonomous Vehicles:

• Improved Safety: AVs do not speed or drive distracted, offering a statistically safer alternative on city streets for other drivers, cyclists, and pedestrians. In cities where they operate, Waymos have 95% fewer serious crashes compared to human drivers in cities where both operate.
• Expanded Accessibility: Robotaxis provide vital mobility options for seniors and residents with disabilities, particularly in places east of the river that can be underserved by the existing ride-share infrastructure.
• Job Creation & Tech Growth: Commercial AV deployment will create full-time local jobs in fleet testing, maintenance, operations, and facility management while signaling that D.C. is open to tech innovation. Notably, these are actual jobs with consistent salaries, full benefits, and often don’t require four-year degrees.
• Reduced Emissions: All AVs that would operate in DC would be electric cars and reduce emissions to help us meet our climate goals. 

Taking the Initiative: Ballot Reforms Make Good Sense

Last week, the Council gave initial 9-2 approval to retiring At-Large Councilmember Anita Bonds’s Fairness and Accountability in Initiative Reform Amendment Act. This legislation addresses concerns among lawmakers and business leaders that outside advocacy groups have misused the ballot initiative process to bypass legislative scrutiny.

Recent initiatives—such as Initiative 82 (tipped minimum wage) and Initiative 83 (ranked-choice voting and semi-open primaries)—demonstrate how complex laws with sweeping economic and fiscal consequences can be placed directly on the ballot.

Key Reforms in the Bill:

• Single-Subject Requirement: Limits any ballot initiative to a single, clear subject, preventing organizers from “tacking on” unrelated policy changes.
• Fiscal Impact Reviews: Mandates thorough fiscal analysis before measures can proceed to the ballot.

Opportunity DC supports these common-sense guardrails to ensure DC’s ballot process remains fair, transparent, and functional.

We hope you had a good September and enjoy the start of Fall!

Malcom Fox
Executive Director, Opportunity DC