DC Business Community Urges Opposition to Congressional Disapproval Resolutions Targeting City’s Tax Code
About this Letter to Congress:
DC’s leading business organizations, including the Greater Washington Board of Trade, jointly urged Congress to oppose H.J. Res. 142 and S.J. Res. 102, which would overturn the District’s decision to decouple its local tax code from parts of the federal “One Big Beautiful Bill Act.” The groups warn that reversing this policy would disrupt the ongoing tax filing season, delay returns until fall 2026, and create a $400 million cash shortfall in FY26. This is all at a time when the District is still recovering from recent federal actions. They emphasize that tax decoupling is a common practice among states and argue that Congress should support DC’s economic stability rather than introduce new uncertainty. The letter calls on lawmakers to reject the resolutions and work toward strengthening the District’s fiscal and economic health.
Letter Submitted:
February 3, 2026
Dear Speaker Johnson, Leader Jeffries, Leader Thune, and Leader Schumer:
We write to you, in unison, as representatives of the District of Columbia’s business organizations, urging you to oppose the Joint Resolution of Disapproval H.J. Res. 142 and Joint Resolution of Disapproval S.J. Res. 102 that would reverse the District’s decision to decouple the local tax code from some provisions of the One Big Beautiful Bill Act’s federal tax code changes.
A reversal of decoupling would create chaos in the middle of tax filing season. The District has already begun accepting and processing returns. It would take the DC government and private vendors months to adjust local tax administration. Filing deadlines would have to be pushed back to the Fall of 2026. Delaying local income tax collection would create a local cash shortfall of up to $400 million in FY26, according to the DC Chief Financial Officer.
Local tax code decoupling from the federal tax code is not unique. Many states have also voted to decouple from provisions in the One Big Beautiful Bill Act, as they have many times in the past in response to federal tax changes.
Changes at this stage in the process would create fiscal instability and uncertainty, impeding the District’s ability to attract investment. There are many ways that Congress has and can continue to use its power to make the District a vibrant city where Americans want to live, visit, and do business, and we welcome your support for the District of Columbia.
Signed,
Anthony Williams, CEO & Executive Director
Federal City Council
Jack McDougle, President & CEO
Greater Washington Board of Trade
Chinyere Hubbard, President & CEO
DC Chamber of Commerce
Lisa Mallory, President & CEO
Apartment & Office Building Association of Metropolitan Washington
Scott Reiter, CEO DC Association of REALTORS
Jacqueline D. Bowens, President & CEO D.C. Hospital Association
Liz DeBarros, CEO
District of Columbia Building Industry Association
Edward Krauze, CEO Greater Capital Area Association of Realtors
Solomon Keene, President & CEO
Hotel Association of Washington, DC
Malcom Fox, Executive Director
Opportunity DC
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