Analysis|Five winners and losers in D.C.’s 2025 budget

D.C. Council Chairman Phil Mendelson shakes hands with Mayor Muriel E. Bowser before she testifies before the council on her budget proposal in April. Council tax hikes — including as on homes worth more than $2.

The caveat: One of the most lucrative tax hikes the council passed is on the tax employers must pay into the paid family leave pot — impacting small and big businesses alike. The council hiked it to 0.75 percent from its current 0.26 percent. Any money that exceeds what’s needed to fund paid family leave goes into the general fund.Council member Kenyan R. McDuffie hit a trifecta in this year’s budget, advancing three major policy goals at once.

Lawmakers worked to fund more than 600 new housing vouchers — some of which would go to people exiting rapid rehousing — after between Mendelson and D.C. Public Schools Chancellor Lewis D. Ferebee about how to fund the public school system. Bowser’s administration ignored a law known as the “schools first” funding formula, which directs that individual schools can’t get less funding than they did the year before. So in his own proposal, Mendelson redirected $25.4 million away from the DCPS central office back into individual schools.Ferebee strongly objected.

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