cannabis

DC’s budget is under real strain, not because residents are asking for too much, but because revenue is not keeping pace with the economy or with the responsibilities DC is required to carry. The District relies primarily on local property, income, and sales taxes, along with federal funds that make up about a quarter of total revenue. Unlike states, DC must fund both city and state level services, including Medicaid, unemployment insurance, and human services, while lacking full control over its own budget.

Congress can block DC laws, restrict how local funds are spent, and impose federal budget riders that deny the District revenue. One clear example is cannabis. DC voters legalized possession, but Congress still blocks the District from regulating and taxing recreational sales, denying millions in revenue that could be reinvested in communities harmed by the War on Drugs.

At the same time, DC’s tax code and development strategy continue to favor the wealthy. Capital gains, inherited wealth, and high value property remain lightly taxed, while working families carry a disproportionate share of the load. The District has increasingly relied on mechanisms like Opportunity Zones, Tax Increment Financing (TIFs), and long term bonding to spur development without clear accountability for results. Too often, these tools shift risk onto future taxpayers while delivering limited public benefit. Without change, revenue will continue to lag behind economic growth, putting…