Federal layoffs by the Trump administration are expected to result in a loss of 40,000 jobs over the next four years, which translates into an estimated billion-dollar drop in revenue for the city due to reduced incomes and lower consumer spending.

To support businesses, Bowser announced she would delay a planned sales tax increase while reviving a tax incentive for tech companies, as well as a $52 million venture capital fund sourced from private and public dollars. She also proposed spending $35 million to increase foot traffic between downtown and the National Mall.

To support education, Bowser proposed $2.8 billion in spending for the city’s school system, which amounts to a $123 million increase. Public and charter school enrollment is set to increase to more than 101,000 students in 2026.

Bowser is also pushing for the Washington Commanders to return to the district by 2030. She, alongside Commanders owner Josh Harris and NFL commissioner Roger Goodell, announced that the district and the team reached a $3.7 billion deal to build a football stadium on the abandoned Robert F. Kennedy Memorial Stadium site. 

While most district residents approve of the new stadium, the deal faces an uncertain future getting approved by the City Council. Bowser’s 2026 budget allocated a billion dollars over several years for the RFK Stadium redevelopment.

Bowser also noted that she would seek to legalize certain forms of gambling, including blackjack and commercial bingo.

To fund some of these measures, 25,000 residents would be removed from Medicaid. These people would be “childless adults and adult caregivers between 138%-200% of the federal poverty level” who would be moved to a new healthcare plan called DC Health Benefits Exchange, which, according to the proposal, has “largely the same benefits.” Bowser also noted that some programs that were set to begin soon, including baby bonds and a child tax credit, could be eliminated.

WASHINGTON COMMANDERS ANNOUNCE DEAL FOR NEW NFL STADIUM AT RFK SITE

The district faced a grave challenge supplementing the rest of fiscal 2025 after the House passed a continuing resolution that did not allow the district to use its previously approved budget authority worth $1.13 billion. To address these matters, the Bowser administration said it instituted a hiring freeze, which saved $63 million, eliminated $175 million worth of nonpersonnel services reductions, and shifted $202 million of spending and costs to fiscal 2027, among other cost-cutting measures.

In doing so, the district is on track to avoid large-scale cuts. It will not have to furlough or lay off employees, close facilities, or reduce summer programming.