House Republicans Move to Block DC’s Effort to End Trump-Era Tax Cuts for Tipped, Overtime Workers

In a sharp legislative rebuke to Washington D.C.’s local government, the House of Representatives passed a bill Wednesday that would prevent the city from blocking key provisions of President Donald Trump’s signature tax legislation, the One Big Beautiful Bill Act. The measure passed along strict party lines with a 215-210 vote, highlighting the ongoing tension between Republican federal lawmakers and the Democratic-controlled D.C. city council.

Led by Representative Brandon Gill, a Republican from Texas, the legislation aims to force D.C. to implement all provisions of Trump’s tax law, including the elimination of taxes on tipped and overtime wages, as well as various business tax cuts that the city council had attempted to block.

“Republicans want more money to be in the hands and in the pockets of working-class families, and Democrats want that money to be in the hands of government,” Gill told Fox News Digital, framing the issue as one of economic freedom versus government control.

The conflict stems from the unique relationship between the federal government and the District of Columbia. As a federal territory, D.C. typically conforms to the federal tax code, but the city’s progressive leadership had moved to block parts of Trump’s tax plan that they claimed would significantly reduce municipal revenue.

D.C.’s non-voting Delegate Eleanor Holmes Norton has been vocal in her opposition to the House bill, calling it “nothing short of unprecedented and deliberate administrative and fiscal sabotage of D.C.” According to Norton and other local officials, implementing the full Trump tax package would result in approximately $600 million in lost revenue for the city, potentially affecting public services and infrastructure projects.

The congressional authority to override D.C.’s local legislation stems from the District of Columbia Home Rule Act of 1973, which grants Congress ultimate authority over the city’s laws. This power dynamic has long been a point of contention for D.C. statehood advocates who argue that the arrangement denies district residents full representation and autonomy.

Rep. Gill defended the measure by emphasizing what he characterizes as the practical benefits of Trump’s tax plan for working residents. “So to give you a few examples, you have no tax on tips, no tax on Social Security, no tax on overtime pay, a variety of pro-growth, pro-business tax provisions that they decided they wanted to decouple from,” Gill explained. “We think that’s bad policy on D.C.’s part, and we’re gonna stop them.”

The timing of the legislation could create significant complications for D.C. residents if passed by the Senate and signed into law. With tax filing season already underway, taxpayers and businesses in the District could face uncertainty about which provisions apply to their returns, potentially necessitating amended filings and creating administrative challenges for the city’s tax authorities.

The dispute highlights broader tensions between federal and local governance, as well as partisan divisions over tax policy. Republicans maintain that their approach benefits workers by allowing them to keep more of their earnings, while Democrats argue that the revenue losses would hamper the city’s ability to fund essential services.

For the legislation to take effect, it would still need to pass the Senate and receive presidential approval. If enacted, it would represent a significant assertion of federal authority over D.C.’s fiscal governance at a time when the district continues to push for greater autonomy.

The congressional intervention also underscores the ongoing political significance of Trump’s economic agenda, as Republicans work to ensure its full implementation despite local resistance in Democratic-controlled jurisdictions.