Trump Signs Legislation to Bar District of Columbia From Decoupling From OBBBA

President Trump has signed legislation to prevent the nation’s capital from decoupling from 13 provisions of the One Big Beautiful Bill Act (OBBBA), but there is uncertainty over whether the law is effective.

On February 4, the House voted 215-210 to pass H.J. Res. 142 to repeal temporary emergency legislation (A26-0214) passed by the D.C. Council late last year. The Senate approved H.J. Res. 142 February 12 in a 49-47 vote.

If effective, H.J. Res 142 will reverse the District’s emergency legislation decoupling from key provisions in the OBBBA. The question hinges on the review period under the District of Columbia Home Rule Act, a 1973 law that generally allows Congress to vote to rescind District legislation within a 30-day review period. The D.C. Council has asserted that the review period ended February 11, which was 30 days from the bill’s transmission to Congress. However, Congress posits that the review period does not start until the bill is published in the Congressional Record.

The Council passed A26-0214 December 3 to avoid large potential revenue losses stemming from 13 of the OBBBA’s many provisions, including the permanent reinstatement of 100% bonus depreciation and the elimination of taxes on tip and overtime wages. The emergency act took immediate effect. (See our previous Alert for more information on the decoupled provisions.)