District of Columbia Home Rule

The U.S. House has passed a bill that would bar Washington, D.C.’s government from decoupling its local tax code from key parts of President Donald Trump’s 'One Big Beautiful Bill Act,' including provisions eliminating federal income tax on tipped and overtime wages, Social Security benefits and certain business tax cuts. The D.C. Council had approved a measure to block those changes, warning through Delegate Eleanor Holmes Norton that conforming fully to the federal law would cost the city about $600 million in lost revenue. Rep. Brandon Gill, R‑Texas, who led the House effort, argued the council was sabotaging working‑class residents for political reasons and said Republicans expected no Democratic support for his bill. Because D.C. is a federal district governed under the 1973 Home Rule Act, Congress can overturn most local laws, but if the Senate follows suit the override could complicate tax season for D.C. residents who have already started filing returns under local rules. The vote spotlights a wider battle over Trump’s second‑term tax agenda and the limits of D.C. self‑government as the city tries to balance revenue needs against federal policy and partisan pressure.