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DC offers WMATA more funding amid 'budget cliff,' but there are conditions

D.C. is offering up an additional $200 million in funding for WMATA on top of what the District already provides, but there are changes they want to see.

WASHINGTON — D.C. Mayor Muriel Bowser extended an olive branch to WMATA on Thursday amid the transit authority's budget shortfall.

Editor's Note: The video above aired on Dec. 14, 2023.

The Washington Metropolitan Area Transit Authority is facing a fiscal cliff as it deals with a $750 million gap in its operating budget – which threatens to cripple the transit system for the region.

RELATED: Metro cuts: Here are the bus lines WMATA is threatening to eliminate

Bowser signed a letter to WMATA that's co-signed by DC Council Chairman Phil Mendelson and Committee on Transportation & the Environment Chairperson Charles Allen.

"Despite many months of hard work done by WMATA and our teams, there is no agreement on long-term sustainable solution to WMATA's structural funding gap," the letter says. "But we cannot let WMATA fail, nor can we allow Metro services to be downgraded to close a budget gap as to render it an unusable transit system."

D.C. is offering up an additional $200 million in funding for WMATA on top of what the District already provides, but there are conditions.

>Read the full letter here.

D.C. is calling on WMATA to revisit their funding formula which the District says is based on "outdated inputs," and they want Maryland and Virginia to pitch in more funding.

"Our proposal lets WMATA avoid major service reductions and provides the necessary time to correct the funding formula," the letter says. "With Maryland's $150 million and Virginia's $130 million commitments, WMATA would have $480 million of the $500 million gap, which should lessen use of the preventive maintenance fund."

WUSA9 talked to District officials Thursday evening for clarification on the "$500 million gap" when WMATA's funding gap has been well-advertised at $750 million. They said that WMATA has been working to reduce the shortfall and successfully squeezed another $250 million out of its deficit – bringing the deficit down to $500 million.

D.C.'s letter had a list of six things they wanted to see from WMATA's 2025 budget, which currently calls for massive cuts to the system, including closing 10 Metro stations and eliminating 50% of all bus routes.

One of the points the District is making is that WMATA needs to hold off on new projects. 

"Until WMATA' s capital budget cliff is addressed, capital funding should go only to maintaining a state of good repair and not toward new capital projects" the letter says. "The District will not support WMATA launching a new wave of capital projects until its overall capital budget is stabilized; to do otherwise would be financially irresponsible."

For example, in July of 2023, a month after WMATA sounded the alarm about its budget woes, the transit authority floated the idea of a massive project to put Metro stations in Georgetown and National Harbor. The plan would cost tens of billions of dollars.

RELATED: What if Metro had stops in Georgetown, National Harbor?

Randy Clarke, WMATA's General Manager & CEO, tweeted a response to Bowser's proposal, essentially thanking her for being a team player for the region.

Clarke thanks Bowser, Mendelson, and Allen for their "leadership and significant financial commitment to help prevent @wmata fiscal cliff. #wmata is critical to DC & the region and this funding is a big step in preventing major service cuts & layoffs."

WATCH NEXT: With budget shortfall looming, WMATA rolls out proposed budget with plenty of cuts

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