Senate passes Trump-endorsed bill to prevent D.C. from losing $1 billion in local operating budget

 March 16, 2025

Apparently, there was a "mistake" in the recent stopgap federal spending bill that would have meant the loss of $1 billion for Washington D.C.'s local operating budget.

The situation sparked the Senate to quickly pass a bill allowing the nation's capital to continue with its prior budget approval for fiscal year 2025, The Hill reported

The bill to fix the situation was endorsed by Senate Republicans and even President Donald Trump. It passed in the upper chamber via voice vote, according to the outlet.

Congress is in charge of approving Washington D.C.'s budget during the appropriations process every year, even though the city was granted "home rule" in the 1970s.

What's happening?

Senate Appropriations Committee Chair Susan Collins of Maine, a Republican, announced that the bill was supported by both President Trump and Republican House Appropriations Committee Chair Tom Cole.

"This bill would simply fix a mistake in the House [continuing resolution] that prevents the District of the Columbia from spending its own tax dollars as part of its budget, which Congress routinely approves," Collins said in a statement.

"Congress approves the authorization of the expenditure of D.C. local funds, which are paid for by D.C. tax revenues," Collins added.

The Hill noted:

Collins noted that previous stopgap legislation enacted last year included language approving D.C.’s fiscal year 2025 budget and that the “language was continued in the second” funding patch passed in late 2024.

During routine appropriations discussions, language included in such bills typically allows D.C. to continue operating under the budget it would have previously approved.

For reasons still unknown, the standard language approving that process was omitted from the most recent stopgap continuing resolution passed last week.

Another shutdown averted

Had the Senate not taken action on the issue, amending the larger spending bill would have required the House's involvement, which would have likely led to a government shutdown since the House recessed after passing the latest CR.

Passing a standalone bill was the fastest and most effective way to allow the capital city to continue operating as normal.

The Hill noted:

The stand-alone D.C. bill still needs to be approved by the House and signed by Trump, and it’s unclear how soon the lower chamber will act on it. Neither the House nor Senate are in session next week.

While the situation isn't ideal, it's better than having to risk a shutdown over omitted language.

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