Monday, March 2, 2026 - 3:45pm
DC’s new revenue forecast shows slightly stronger collections this year thanks to higher wages, strong stock‑market gains, and solid early‑year income tax payments. But these improvements aren’t enough to offset the broader economic challenges facing the city. Federal job cuts, weak real estate activity, soft tourism, and uncertainty surrounding a new federal law reversing DC’s tax changes are all weighing heavily on FY 2026 revenue. Some growth is expected to return in FY 2027 and beyond, but with commercial real estate still struggling and uncertainty surrounding both federal policy and the regional labor market, the financial outlook remains guarded. Read the entire forecast letter here.
