(Washington, DC) - Today, Mayor Muriel Bowser unveiled her economic growth agenda that will be included in her Fiscal Year 2026 budget. With the city facing economic uncertainty caused by a shrinking federal presence, including the possible loss of 40,000 jobs, the Mayor's budget invests in a bold, proactive growth agenda to attract new businesses, create new jobs, generate new tax revenue, and quickly grow the local economy.

"I want Washingtonians to know that this growth agenda is about our future. In FY26, we're not standing still; we're being bold and making catalytic investments that will bring new jobs and new revenue into DC," said Mayor Bowser. "We know that our economy is shifting, and we know the challenges we are facing. Thousands of Washingtonians have already been impacted by those challenges. This is a budget that recognizes that we can't just sit on our hands and hope something changes - we've got to make change happen."

Investing in Downtown
Downtown remains a vital engine for DC's economic growth. The FY26 budget continues the work happening under the District's Comeback Plan by supporting a 24/7 Downtown with more housing, people, activity, and vibrancy.

Activating Spaces:

• $1.1M to host activations during Capital One Arena construction.
• Launch the Gallery Place Cultural District to support the neighborhood.
• $250,000 to support the Chinatown Renewal Initiative to rejuvenate and preserve the cultural identity of Chinatown.

Transforming Spaces:

• Increase new office-to-housing conversions by expanding the Housing in Downtown program to Georgetown and Mt. Vernon Triangle.
• $34.8M to improve public spaces and attract people from the National Mall to Downtown:
  • Gallery Square: Transform the National Portrait Gallery plaza into a European-style plaza that will draw residents and visitors to businesses around the Chinatown-Gallery Place neighborhood.
  • 8th Street Walk: Connect Gallery Square to the Convention Center by creating a green street that offers shade, seating, and areas for smaller activations.
  • 7th Street South: Create dynamic public spaces between Gallery Square and Pennsylvania Avenue to attract more visitors from the National Mall into the Gallery Place/Chinatown neighborhood.
• $1.5M to develop a Master Plan for Southwest DC as a new mixed-use community that maximizes its proximity to the National Mall.

Doubling Down on Sports and Entertainment
The District's investments in sports have been catalytic drivers of opportunity for neighborhoods across the city. The sports and entertainment sectors are continuing to grow and make the District's economy more resilient.

Investing in the Sports Capital:

• $171M for Capital One Arena Improvements.
• $500M for RFK Stadium horizontal infrastructure.

Bringing New Life to DC's Theaters:

• $6M for assistance and repairs at the historic National Theatre, Lincoln Theatre, and Howard Theatre.

The FY26 budget also includes $820,000 to support planning for celebrations in July 2026 that will mark the 250th anniversary of Independence Day.

Investing in Tech
Washington, DC is ranked as a national leader for tech careers and cybersecurity talent. The Mayor's budget invests in the tech industry as a key growth industry, with a focus on attracting new tech businesses and global entrepreneurs to DC.

Accelerating DC's Position as a Tech Hub:

• $2.2M to revive the Qualified High Technology Companies (QHTC) tax incentive.
• $2.4M to create the DC Technology Ecosystem Fund to invest in business accelerators and incubators for start-up tech companies in DC.

Supporting Emerging DC-Based Tech Companies:

• Launched in 2024, the DC Venture Capital Program is leveraging $52 million in combined DC and private dollars to make equity investments in early-stage, DC-based tech companies.

Supersizing Business Attraction
Given the urgency of the moment, the Mayor's FY26 budget redirects a portion of DC's tourism attraction funding to expand the city's business attraction efforts.

The Mayor's FY26 budget includes $6.6M to market DC to new, prospective businesses and to generate business attraction leads and incentives. The FY26 budget also includes $5M to continue the Vitality Fund, the District's most effective existing incentive to businesses within targeted, high-growth sectors to relocate, expand, or remain in the District.

By investing more in business attraction, the District can:

• Double DC's marketing capacity.
• Accelerate DC's capacity to attract high growth industries to DC.

Removing Barriers to Business Growth
The Mayor's FY26 budget will make it easier to do business in DC by cutting red tape, lowering taxes, improving processes, and supporting local businesses.

Making it Easier to Open in DC by Cutting Red Tape:

• Reform zoning procedures to speed up reviews of new development projects.
• Pause Building Energy Performance Standard and Net Zero.
• Repeal the Parking Benefit Equivalent Program.
• Encourage new investment in housing production by reforming TOPA.

Making it Easier to Stay in DC by Cutting Taxes and Supporting Local Businesses:

• No sales tax increase in FY26.
• Reduce Universal Paid Leave tax from 0.75% to 0.72%.
• Expand eligibility for DMPED retail grant programs.
• $1.5M for citywide retail incentives to revitalize commercial corridors in all 8 wards.

Supporting DC's Restaurants
DC restaurants are facing a perfect storm - from increased operating and supply costs to higher rents and unique labor challenges. DC must rebalance our system to ensure local restaurants can survive, compete, and employ DC residents.

The FY26 budget will:

• Bring DC's policies in line with the region by restoring DC's previous tipped minimum wage law.
• Create sales tax holidays for restaurants on August 29, 2025, January 18, 2026, and May 22, 2026.

The Mayor's full presentation on the growth agenda is posted on budget.dc.gov.

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