The Committee on Transportation and the Environment convened on June 25, 2025, under the leadership of Chairperson Charles Allen, to discuss the District of Columbia's proposed budget for Fiscal Year 2026. This meeting followed a condensed timeline of budget oversight hearings, during which the committee received extensive public input, including live testimony from approximately 150 witnesses and 171 written submissions. The passionate engagement from the community underscored the significance of the budget discussions.

Chairperson Allen began by outlining the challenging financial context surrounding the proposed budget. The District's Chief Financial Officer had projected a significant decline in local revenues over the next four years, estimating an average reduction of $342 million annually. This forecast was compounded by a decrease in federal employment, which would further diminish income and sales tax revenues. Additionally, a recent continuing resolution passed by Congress restricted the District's ability to spend its own funds, necessitating a reduction of $1.13 billion in FY 2025 spending levels.

The mayor's proposed budget, branded as a "GrowDC" initiative aimed at fostering growth, faced criticism for undermining the District's commitments to sustainable energy and environmental goals. Key cuts included a $71 million sweep from the Sustainable Energy Trust Fund (SETF), which supports various sustainable energy projects. This marked a significant retreat from the District's climate commitments, with the Department of Energy and Environment facing a total budget reduction of $77 million compared to FY 2025.

The committee's discussions highlighted the adverse impacts of these cuts on local businesses and environmental initiatives. Witnesses included contractors and nonprofits who expressed concerns about the detrimental effects of reduced funding on sustainable energy projects and community programs. Despite these challenges, the committee managed to restore some funding, including $3.1 million to the SETF and a full restoration of $1.9 million to the Anacostia River Cleanup and Protection Fund.

The proposed budget also included reductions to the DC Green Bank, which plays a crucial role in financing sustainable projects. The committee's report proposed a minimum annual contribution of $3.5 million to the Green Bank, although this was half of the previous year's funding. The Green Bank's ability to leverage public funding for private investment was emphasized, with discussions around potential bond issuances to enhance its financial independence.

In addition to environmental concerns, the committee addressed transportation-related budget cuts. The meeting concluded with a commitment to continue advocating for the restoration of funding to support the District's environmental and transportation goals, emphasizing the importance of maintaining robust investments in sustainable infrastructure.

Overall, the committee's deliberations reflected a complex interplay between fiscal constraints and the need for continued investment in the District's environmental and transportation initiatives, setting the stage for further discussions as the budget process moves forward.