D.C. Budget Cuts Target Child Care and Paid Leave for Private Sector Workers

Private sector workers in D.C. will be unable to take paid leave for personal medical situations or family caretaking for one year if Mayor Muriel Bowser's proposed budget passes. The plan includes a $95 million cut to the paid family and medical leave program, achieved by pausing payouts for all medical claims.

Parents will face higher child care costs if the city axes the Pay Equity Fund. The fund, which uses a tax on wealthy households to increase pay for roughly 4,000 child care workers, is proposed for almost full removal. A study found that in its first two years, the fund increased labor supply by 7 percent and added 1,500 new child care seats across the city. Removing the fund would reduce the qualified workforce available to serve families, which advocates say would drive prices higher.

These cuts are part of a $21.2 billion budget proposal for 2027, which is nearly 4 percent smaller than the previous year. Bowser says the city must scale back spending as it retools for a weaker economy caused by federal government layoffs. While the city has $2.2 billion in reserves, the proposal includes a pay freeze for most of the city's 37,000 employees, excluding teachers and police officers.