House Republicans move to block DC from stopping Trump tax cuts on tipped workers

The House of Representatives passed a bill Wednesday aimed at preventing local government in Washington from blocking parts of President Donald Trump’s new tax law.

The progressive DC City Council has passed a local measure to block parts of Trump’s One Big Beautiful Bill Act from taking effect because of their expected effect of reducing city revenue.

Policies reportedly blocked include Trump’s elimination of taxes on tipping and overtime, as well as some tax cuts for businesses.

The legislation was spearheaded by Rep. Brandon Gill, R-Texas, who told Fox News Digital he didn’t expect a Democrat to support his bill. It passed the House entirely along party lines by a vote of 215 to 210.

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President Donald Trump signs the One Big Beautiful Bill Act during a picnic with military families to mark Independence Day, at the White House on July 4, 2025. (Ken Cedeno/Reuters)

“Republicans want more money in the hands and pockets of working-class families, and Democrats want that money in the hands of the government,” Gill said.

The government in Washington, DC, generally complies with large parts of the federal tax code, as a federal territory itself.

But according to local officials, including non-voting Rep. Eleanor Holmes Norton, D-C., passing Trump’s entire tax bill would amount to a $600 million loss in revenue for the city.

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Rep. Brandon Gill leaves the House Republican Conference caucus meeting at the Capitol, May 6, 2025. (Bill Clark/CQ Roll Call, Inc. via Getty Images)

“This resolution is nothing short of deliberate and unprecedented administrative and fiscal sabotage of DC,” Norton said in a statement.

But Republicans, including Gill, say progressive officials in the capital are blocking the legislation signed by Trump for political reasons, to the detriment of working-class residents.

“Every time we passed this tax law, we expected Washington, D.C., to comply with these tax provisions. And unfortunately, they decided they were going to try to divorce themselves from it,” Gill said.

Del. Eleanor Holmes Norton arrives for a subcommittee hearing in Washington, DC, July 23, 2025. (Graeme Sloan/Bloomberg via Getty Images)

“So to give you some examples, you have no tip tax, no Social Security tax, no overtime tax, a variety of pro-growth, pro-business tax provisions that they’ve decided to divest themselves of. So what we’re saying is we think this is bad policy on the part of D.C., and we’re going to stop them.”

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Congress has the ability to overturn most local laws established by DC thanks to the District of Columbia Home Rule Act of 1973.

However, if passed in the House and Senate, the Republican bill could complicate tax season for Washington, D.C. residents who have already started filing their annual returns.