Senate votes to overturn DC tax decoupling, as locals push back

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Source: Roll Call

Posted February 12, 2026 at 2:40pm


The Senate passed a joint resolution on Thursday blocking changes to the District of Columbia’s tax code, which will now head to President Donald Trump’s desk. District officials warned it could cause delays during tax season and devastate the city’s budget, and suggested Congress had missed its window to intervene in the local actions. It is rare for Congress to use its power to nullify local laws in D.C., with just four other examples in recent decades, according to the Congressional Research Service: in 1979, 1981, 1991 and 2023.

“We are seeing sort of an unprecedented level of micromanagement under this administration, and Congress seems to be following this administration in its bullying of D.C.,” said Stasha Rhodes, a senior adviser at D.C. Vote, an advocacy group that pushes for equality for D.C. residents.

The disapproval resolution would reverse a decision by the D.C. Council to reject some of Trump’s signature tax policies, such as “no tax on tips.” The House narrowly passed the measure last week along party lines, and the final tally in the Senate was 49-47.

In pleas to congressional leaders, local officials cited projections that the District is poised to lose hundreds of millions in revenue over the next five years if it conformed to the federal code. By decoupling, the District was able to put resources toward a local child tax credit and an expanded earned income tax credit, they said.

Read more: https://rollcall.com/2026/02/12/senate-votes-to-overturn-dc-tax-decoupling/