D.C. Council passes $21B budget after disagreement with mayor

The D.C. Council gave final approval Wednesday to a $21 billion budget , one of the most difficult plans to cobble together in decades due to a drop in revenue and the end of federal pandemic aid.

Why it matters: Lawmakers devoted more funding for housing assistance and raised taxes on businesses — frustrating Mayor Muriel Bowser , who wanted more cuts to spending.

How it works: D.C. is set to raise a payroll tax on businesses. The hike was originally intended to float the paid family leave program, but council members instead are directing the funds to the broader budget.

• The property tax rate would also go up on the value of homes worth more than $2.5 million.
• The budget funds 600 additional housing vouchers available for residents at risk of falling into homelessness. Part of that, however, comes from $1 million being removed from a new anti-truancy program envisioned by Bowser inside the Department of Human Services.

Council chair Phil Mendelson defended the changes by saying the mayor's original budget proposal in April cut too deeply "safety net programs and other initiatives that advanced the fight for equity," per the Washington Post .

The other side: Meanwhile, Bowser said in a letter to the council that she is "greatly concerned" the plan "sets up our residents and businesses for even larger cuts to services and programs or additional tax hikes next year."

Zoom in: The council also restored funding cut from Bowser's original plan to build a youth sports complex at the RFK site and for a new D.C. jail.

• A provision that would open up D.C.'s sports gambling program to more operators other than FanDuel advanced in the budget as well.