UPO Warns that 64,000+ DC Residents Will Lose Essential Services Under FY 2026 Budget Cuts

February 26, 2026

FOR IMMEDIATE RELEASE

February 26, 2026

The United Planning Organization (UPO) announced today that more than 64,000 District of Columbia residents will lose or experience major reductions in essential safety‑net services due to budget cuts adopted last year in the FY 2026 budget. The programs facing the most severe cuts include health care, Temporary Assistance for Needy Families (TANF), and key housing support programs. The collective impact represents the largest reductions to DC’s social services in at least a generation.

UPO staff and customers will bring these concerns to Mayor Muriel Bowser’s FY 2027 Budget Engagement Forum this evening.

“These cuts threaten the stability, health, and basic well‑being of tens of thousands of our neighbors,” said Andrea Thomas, President and CEO of UPO. “These programs are not optional — they are lifelines. Losing them will have immediate and devastating consequences for households already facing economic hardship.”

Impact on DC Families

UPO highlighted the deepest cuts in the FY 2026 budget.

  • 22,000 parents and children face cuts to TANF cash assistance that will leave an unemployed family of 3 with just $201 a month in cash.
  • 26,000 residents will lose health insurance entirely from eliminating the DC Healthcare Alliance and cuts to Medicaid.
  • 16,000 residents will lose dental, vision, long-term care, and other health benefits by being moved from Medicaid to a new Basic Health Plan.

UPO noted other large reductions, including cuts to the child care Pay Equity Fund that will reduce salaries for as many as 3,000 teachers; cuts to child care subsidies that could force DC to create a waitlist for the first time in a decade; and limited investments in Permanent Supportive Housing at a time when thousands of families are losing Rapid Rehousing benefits.

These services are foundational to family stability. Cutting them now will not only increase hardship but will trigger higher long‑term costs to the city through avoidable crises in health, housing, and emergency support.

UPO Calls for Immediate Action

UPO is urging District leadership, community partners, and residents to work together to protect core safety-net programs and ensure the budget reflects the city’s values of economic security, dignity, and opportunity.

Thomas acknowledged that DC’s finances are stretched but rejected that as a justification for cuts that so deeply affect residents with low incomes. “By concentrating budget cuts on our poorest residents, a ripple effect is triggered that impacts everyone in Washington, DC: higher rates of homelessness, increased emergency room visits, and higher rates of child hunger, whose long-term physical and cognitive effects imperil the future of our children.”

————

About United Planning Organization

The United Planning Organization (UPO) is Washington, DC’s nonprofit Community Action Agency, dedicated to moving residents into economic security. Through education, housing support, workforce training, family services, and community partnerships, UPO Unites People with Opportunities, serving thousands of DC families each year with programs designed to build long‑term economic stability.

PRESS CONTACT: Zohar Rom           zrom@upo.org  (202) 238-4664   Cell: (202) 812-4001

Related Posts

17.4.2025

Eviction of DC Renters Reached a 10-year High in 2024

Federal Pandemic Programs Provided Extensive Aid for Three Years, But Ended Abruptly, Leaving Low-Income DC Families Stranded FY 2025 DC BUDGET CUTS WILL COMPOUND THE IMPACT OF EXPIRED FEDERAL AID

4.3.2025

Community Election for UPO Board: Ward 2/6 Member

UPO’s Board of Directors announced an election for an open seat to serve Ward 2/6 (combined)