WASHINGTON (DC News Now) — The District’s ability to implement new or change existing tax code could be at stake.
On Wednesday, the House Oversight Committee advanced the D.C. Taxing Authority Review Act. If passed, the bill would require Congressional approval of any bill passed by the D.C. Council that imposes or increases a tax or fee within 60 days of passage.
Kentucky Rep. James Comer proposed the bill.
“Radical D.C. Democrats want to solve their spending problem by reaching deeper into taxpayers’ pockets and driving further on the path to socialism. Let’s be clear: higher taxes will not fix the financial mess they created,” Comer said.
Comer pointed specifically to democratic mayor-elect Janeese Lewis George, who supports implementing a business activity tax. It’s a measure the DC Council has funded a study on to see if and how it could work in the District. He also noted a new fee added to third-party food delivery services and a bill proposed by councilmember Brianne Nadeau to implement a wealth proceeds tax.
But opponents of the bill argue it would do more than Comer is intending.
“I strongly oppose this radical, undemocratic, paternalistic and unworkable bill,” said D.C. Del. Eleanor Holmes Norton. “This bill takes away D.C.’s authority over its tax code, turning the DC Council into an advisory body for taxation. D.C. could not impose, increase, cut or eliminate a tax without Congressional approval. I will repeat that for my Republican colleagues, D.C. could not cut or eliminate a tax without Congressional approval.”
Members of the DC Council are also pushing back.
In a letter to Comer, Chairman Phil Mendelson said he was disappointed that he was not consulted on the legislation.
“The bill would straitjacket the District because it would paralyze our tax code. If Congress cannot approve our judges, and could not fix last year’s Continuing Resolution error, then it is highly unlikely to affirmatively approve D.C. tax bills,” he said.
Congress already has the ability to veto D.C. tax laws.
Under the current Home Rule Act, Congress has 30 days to review a D.C. bill after the Council passes it. If Congress does nothing, the bill goes into law. If Congress passes a disapproval resolution, the bill will not go into law.
Under the D.C. Taxing Authority Review Act, a bill passed by DC Council in regard to taxes or fees would require Congress to approve the bill within 60 days of passage for it to become law.
“This bill would be devastating,” said at-large councilmember Robert White. “It would let a Congress that can’t even keep its own government open decide whether D.C. can fund its own police, schools, and services. Our budget would become a request we send to Congress that dies the moment they ignore it.”
The bill passed through committee in a 23-18 vote. It now moves on to the full House for a vote.
It also requires passage by the Senate.
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