D.C. Council members could be forced to make $150M last-minute cut

What he's saying: CFO Glen Lee describes the reserves as "needed to manage and support the cash flow needs" of the city government.

• Therefore, he wrote in a letter to the council on Monday, it's "imprudent to depend" on them for city programs.

Context: Lee's word matters because his job is to ensure that D.C. budgets are balanced, a federal requirement.

• There's fear that Lee labeling the budget "unbalanced" would invite intervention from Congress, which has final say over the city.

By the numbers: D.C.'s reserves were 99% full as of the end of last fiscal year in September 2025 ($2.23 billion), per data the CFO provided to Axios.

State of play: Council members could've seen this coming. Lee warned them against tapping the reserves earlier this month.

• Now, Council Chairman Phil Mendelson is consulting Attorney General Brian Schwalb about how to move forward. Two years ago, Schwalb wrote in an opinion that the CFO's "failure to certify an otherwise valid budget would have no legal effect."
• Mendelson has said the council's one-time use of the reserves would still keep it at a level enough to cover 60 days of operating expenses.

What we're watching: The council can revise the budget before its final vote on Tuesday afternoon.