D.C. set to become first city in the U.S. to implement local child tax credit

D.C. is poised to become the first city in the nation to create a local child tax credit, a move that lawmakers say could be transformative for families living in poverty.

The D.C. Council passed the local child tax credit — which supplements the federal one — on Tuesday while lawmakers voted to divorce D.C.’s local taxes from President Donald Trump’s One Big Beautiful Bill tax overhaul. The move freed up hundreds of millions in funds for the credit — and it comes as the city’s chief financial officer also has identified hundreds of millions in unexpected surplus revenue.