House Resolution Aims to Block DC Tax Code Decoupling

The measure would reject a recent DC law to decouple from federal tax changes.

Feb. 2, 2026 at 4:31am

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A recently enacted temporary Washington, DC, law to decouple the city's tax laws from certain changes to the federal tax code made by Republicans' 2025 tax law would be rejected under H. J. Res. 142, a new House resolution.

Why it matters

The DC Council approved the decoupling bills at the end of 2025 after finding that tax provisions in the Republicans' 2025 budget reconciliation package created a $539.4 million gap in the local budget through fiscal 2029 due to a drop in estimated tax revenue. The House resolution seeks to block this decoupling.

The details

H. J. Res. 142 would disapprove and nullify the DC law that decoupled the city's tax code from the federal changes made by the Republicans' 2025 tax law. This would force DC to continue aligning its tax code with the federal changes, which the city estimates would create a significant budget shortfall.

  • The DC Council approved the decoupling bills at the end of 2025.
  • H. J. Res. 142 was introduced in the House in February 2026.

The players

Washington, DC

The local government of the District of Columbia.

DC Council

The legislative body of the District of Columbia government.

Republicans

The political party that passed tax law changes in 2025 that prompted DC to decouple its tax code.

H. J. Res. 142

A House resolution that would block DC's decoupling from the federal tax changes.

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What’s next

H. J. Res. 142 will now proceed through the legislative process in the House and potentially the Senate.

The takeaway

This resolution highlights the ongoing tensions between the federal government and the District of Columbia over tax policy and local control. The outcome could have significant budgetary implications for DC.