Monday, July 27, 2026
By Caroline Woodward
On Wednesday, July 22, the House Committee on Oversight and Government Reform advanced a bill which would prevent D.C. from raising taxes without congressional approval.
The legislation, known as D.C. Taxing Authority Review Act, states that all D.C. taxes and fees must be approved by Congress within 60 days or they will not take effect. This process would seriously impede the District’s self-governance and reduce its control over its own finances. In addition, according to the D.C. Fiscal Policy Institute, the bill would pose a risk to D.C.’s credit ratings.
“Credit downgrades would create higher costs for D.C., putting an even bigger squeeze on the District’s budget and ability to maintain healthy finances as it has for the past three decades,” wrote DCFPI Executive Director Erica Williams in an article.
The bill was introduced and championed by Rep. James Comer, Republican of Kentucky, who chairs the House Committee on Oversight and Government Reform. Comer said the bill is intended to curb D.C. tax increases and force the government to focus on spending reforms.
“Radical D.C. Democrats want to solve their spending problem by reaching deeper into taxpayers’ pockets and driving further on the path to socialism,” said Comer in a committee press release. “The Constitution gives Congress clear responsibility over the nation’s capital, and we must prevent the D.C. Council’s reckless fiscal policies jeopardizing its future.”
Congress already has effective veto power over the District’s authority to tax, raise fees or set budgets via a 30-day congressional review period, to which all D.C. financial policy is subject. During this 30-day window, Congress can either move to enact a joint resolution of disapproval or do nothing, allowing the legislation to passively become law.
This process, which falls under the Home Rule Act of 1973, means D.C. fiscal policy exists with the consent of Congress, but does not yet need its express approval. The D.C. Taxing Authority Review Act seeks to totally eliminate the remainder of D.C.’s fiscal autonomy.
In response, Mayor Muriel Bowser issued a statement opposing the bill.
“This would render the District incapable of recovering from the debilitating impacts of Covid, federal remote work and DOGE. A safe and beautiful Nation’s Capital can only be sustained with a vibrant economy,” said Mayor Bowser. “While the federal government should not touch the District’s ability to raise and spend its local dollars, they can and should help us replace the economic activity lost through reductions to the federal workforce and a shrinking federal footprint — that would help us ‘unstick’ this period of slowed growth.”
The House Oversight Committee having advanced the bill with a 23-to-18 vote, it now goes to the House of Representative for a full vote. The House is currently in recess until late August, meaning the timing for the debate and vote remains to be set. The bill will most likely face backlash by both House and Senate Democrats as it moves forward.