Mayor Bowser’s new economic agenda funnels more than $1 billion to the corporate class and doubles down on ineffective strategies while stripping away legal protections for tenants and wages for workers. Her geographically targeted investments exclude Black communities East of the Anacostia River (EOTR), where deeper opportunities are most needed. At a time of deep economic uncertainty, her agenda fails to embrace policies that grow DC’s economy from the bottom up and middle out, paving the way for worsening inequality. DC Council should reject several elements of her agenda and center equity, workers, and everyday residents in the looming recession.
Mayor’s Economic Agenda Centers Trickle-Down Economics
DC’s economy is at its strongest when the workers who power it are the focus of policymaking. Yet, to enact her vision of DC as a sports, hospitality, and high-tech hub, Mayor Bowser is proposing massive giveaways to businesses, drawing away funding from vital public services and with only partial clarity on how she will pay for them. Evidence shows her misguided approach will not grow an inclusive economy, with the most wasteful elements in her proposal being:
- Subsidizing a billionaire and wealthy co-owners to build a glitzy stadium. The mayor wants to fast-track an ill-designed deal with the Commanders that would divert at least $1.14 billion in public money to building a new stadium (and related costs) at the RFK site. Analysis shows this would be the second highest sports stadium construction subsidy in the US. It also comes on top of last year’s deal with Monumental Sports to provide $515 million in public money for renovations to Capital One Arena. Sports economists widely agree that NFL stadiums “do not generate significant local economic growth” and that they are “typically just gigantic giveaways to billionaire owners at the expense of taxpayers.” And, such subsidies overwhelmingly transfer public wealth to white men, research shows.
- Squandering dollars on ineffective strategies. She proposes reviving tax cuts for Qualified High Technology Companies, which DC Council largely ended in 2020 after the Chief Financial Officer found the program to be costly without strong accountability measures or any sign of economic benefits. DC is already home to a booming tech sector due to a highly educated workforce and strong talent pipeline. The mayor also proposes to suspend taxes on restaurant meals via “sales tax holidays,” despite the fact that research shows these tend to be costly, benefit wealthy residents the most, and enable businesses to exploit consumers with higher prices.
- Deepening investments for programs with little evidence they’re working: The mayor also wants to expand to Georgetown and Mt. Vernon Triangle the unproven Housing in Downtown program—which provides tax abatements and exemptions from Tenant Opportunity to Purchase Act (TOPA) requirements to developers to convert office buildings to housing. The mayor should provide proof that the program is meeting its goals and that these projects wouldn’t happen absent the subsidy before further expansion, as well as include clawbacks to safeguard public dollars. There’s already proof that some developers waited on already planned downtown office conversions until the tax abatement program started.
The mayor proposed some worthwhile ideas, such as pausing the planned increase in the sales tax that she proposed last year. She wants to improve public spaces in the Gallery Place/Chinatown neighborhood and provide $6 million for repairs at several DC theaters. But these investments are small compared to the enormous corporate giveaways. And, these massive corporate subsidies come at a time DC is facing an estimated $1 billion revenue loss largely due to federal job losses, plus potential cuts to Medicaid that could cost DC well over $1 billion annually.
Mayor’s Economic Agenda Harms Workers and Tenants and Exacerbates Racial and Geographic Inequities
While bankrolling giveaways to businesses, the mayor’s agenda betrays workers and tenants. She wants to repeal Initiative 82—a law that gradually raises tipped workers’ minimum wage—and return to $5.35 per hour from the current $10 per hour (set to increase to $12 in July). DC voters passed the initiative twice—with 74 percent approval the second time—and workers are benefiting from higher wages plus tips that remain strong. Lawmakers should find other ways to support struggling restaurants that don’t require sacrificing economic justice for workers with low incomes.
The mayor is also putting landlords ahead of tenants with her proposed Rebalancing Expectations for Neighbors, Tenants, and Landlords Act (RENTAL Act). The Act would speed up the eviction process and significantly narrow TOPA, which gives tenants the first right of purchase if their building is put up for sale. Stripping away protections for tenants will lead to more evictions, especially for Black and brown renters who are the most cost burdened in DC.
The mayor’s plan may also deepen racial and geographic inequities. Many of the investments in her new economic agenda are in downtown and Southwest DC, and she did not announce any new or expanded specific investments in predominantly Black communities East of the River, such as bringing much-needed grocery stores to the area.
Council Should Reject Most Elements of the Mayor’s Plan
DC will never achieve transformational growth by doubling down on ineffective and disproven strategies. To seed inclusive and long-lasting growth, DC Council should support the residents with the lowest incomes, fortify local programs that build economic security and grow low- and middle-class incomes, and make effective investments that help residents weather the economic storm.
