District Ends FY 2025 with a Balanced Budget and 29th Consecutive Unmodified “Clean” Opinion

Chief Financial Officer Glen Lee today released the Government of the District of Columbia’s Fiscal Year 2025 Annual Comprehensive Financial Report (ACFR), for the year ended Sept. 30, 2025. The District finished FY 2025 with a balanced budget and a $4.8 billion general fund balance.

“Due to prudent financial management and sound decision-making, the District ended fiscal year 2025 in a strong position,” said CFO Lee. “These results were achieved in the face of unprecedented challenges, including thousands of federal job reductions and high commercial office vacancies. Going forward, the District government has a solid foundation for navigating the continuing changes in our economy.”

Independent certified public accountants CliftonLarsonAllen, LLP, audited the FY 2025 ACFR, with the assistance of F.S. Taylor & Associates, PC.

Takeaways from the District’s FY 2025 Annual Comprehensive Financial Report:

• The District’s financial statements received a clean audit opinion for the 29th consecutive year – indicating no material misstatements or errors.
• Actual FY25 revenues exceeded the budget by $257.3 million, mainly due to strong non-withholding and corporate tax collections.
• The General Fund balance (which includes prior year surpluses, dedicated funds and mandated reserves) totals $4.8 billion.
  • Federally and locally mandated reserves total $2.2 billion. The reserves are near full funding in order to operate the government and respond to unplanned events.
• Trusts for Retirement and Other Post-Employment Benefits are fully funded.
• The District’s ratings for General Obligation Bonds and Income Tax Bonds remain strong.

NOTE: CFO Lee will present additional information on the FY 2025 ACFR at a DC Council public hearing at 2:30 p.m. Thursday, Feb. 5, 2026.