Washington, D.C., is a strong and resilient city: It is innovative, vibrant and rich in culture. But it is our business community — the local restaurants and corner stores, tech firms and startups, nonprofits and professional services shops — that is the heart and soul of our local economy and neighborhoods. Together, they reflect the entrepreneurial spirit and creativity that make this city more than just a government town.
As we outlined in the D.C. Chamber’s 2025 State of Business Report, we face a pivotal moment. Employers across industries have expressed concerns about the rising costs, declining investment and the competitive disadvantages that make growth more challenging here than in neighboring jurisdictions. These concerns, already pressing when we conducted our study, have only intensified in recent months.
While we remain optimistic about our city’s long-term potential and bright future, we must address the immediate pressures threatening our economic foundation. With heightened congressional scrutiny and fragile economic forecasting, we must show that our leaders can keep their focus where it belongs: on supporting growth, not piling on costs that weaken confidence. Now is the time to make it easier, not harder to do business in D.C.
Many of the headwinds we face originated beyond our control. The recent federal intervention and the current shutdown, combined with inflation, lingering pandemic effects and a diminished federal and downtown workforce have reduced foot traffic and significantly raised costs across the board. Small businesses that already operate on thin profit margins are struggling to keep up. Many owners are facing tough decisions so they can continue to operate in the District.
We’ve seen the toll most visibly in our dining scene. A record number of restaurants closed in the District in 2024, and a survey from the Restaurant Association of Metropolitan Washington (RAMW) reported that 51% of restaurant operators expect conditions to worsen this year. President Donald Trump’s federal law enforcement surge and the National Guard deployments have contributed to sharp declines in diners compared to the same days in 2024, according to OpenTable data. This was a particularly tough blow during RAMW’s beloved Summer Restaurant Week, which typically drives a dining spike in August. Supply chain disruptions and staffing instability have compounded these difficulties for D.C.’s critically important restaurant and hospitality industries.
Meanwhile, our professional services, tech firms and innovators are fielding questions from investors and partners about whether the District remains the optimal location for expansion. Council testimony this past July underscored a sobering point: D.C. is losing ground in attracting real estate investment to other jurisdictions. We can’t afford any policies that accelerate a trend of losing capital and projects across our borders.
This is precisely why we urge the council to exercise judicious restraint as it advances legislation and in the policies that are in our control this session. With the threat of federal interference always looming and Congress clearly unafraid to treat the District like a political football, we cannot afford to advance bills that impose new burdens on residents and businesses. Such actions risk weakening our economy during a vulnerable time and handing federal lawmakers another excuse to intervene.
This means no new taxes on already overburdened residents and businesses. No costly mandates that drain resources from small businesses already stretched to capacity. And it means rejecting poorly conceived legislation like the proposed Bottle Bill, which would require retailers and restaurants to pay deposits up front on every beverage container they sell — from water to wine. Some businesses would be forced to create and operate redemption centers, while the city builds a new bureaucracy to administer the system. All resulting in higher prices for customers, more red tape for local businesses and yet another competitive edge for Maryland and Virginia.
Such proposals send a troubling message: D.C. is a place where conducting business is unnecessarily difficult. That is exactly the wrong signal to send as we work to rebuild confidence and compete with neighboring jurisdictions for jobs, investment and growth.
Advocating for our city is core to who we are at the D.C. Chamber. It is our role to ensure that the businesses who operate here, the families calling D.C. home, and the employees working throughout all eight wards, have the resources they need to prosper and serve our city and its visitors.
The eyes of the federal government are already on us. The District is a world-class city and has long demonstrated that it can govern with fiscal discipline and balance. Prioritizing growth, protecting local businesses and strengthening the dynamic business culture that keep D.C. thriving and competitive is the best way the council can protect our autonomy and safeguard our future.