
First from Council Chairman Phil Mendelson’s office on Friday:
“DC Council Chairman Phil Mendelson issued the following statement in response to Moody’s placing the District’s credit ratings on review for possible downgrade:
“Today’s decision by Moody’s to change our outlook to ‘Under Review,’ further demonstrates how the decision to drastically downsize the federal workforce is hurting our regional economy,” Mendelson said.
“According to Moody’s, this review ‘is prompted by drastic cuts to the federal workforce, which have an outsized impact on the District’s economy, finances and employment.’ The agency is also pointing to potential reductions in federal Medicaid funding as having a negative impact on the District’s credit rating. Their review will focus on the city’s fiscal 2026 and future budgets.
“Despite whatever federal challenges, our FY 2026 Budget will be a balanced budget, as it has been 29 consecutive times before,” Mendelson added. “The District government is well-managed fiscally – better than most states, which Moody’s historically acknowledges. But the shocking and disruptive cuts by the Federal government, as well as our lack of Statehood, continue to hurt the District.”
And from the Post this morning:
“GOP spending bill would lead to $1 billion in D.C. cuts, city officials say”
Council Members Henderson and Lewis George write: (more…)