A bill to amend the District of Columbia Self-Governmental Reorganization Act, to establish a formula-based annual Federal Payment, to require the District to budget to offset any deficit occurring in its General Fund and for other purposes.

Amends the District of Columbia Self-Government and Governmental Reorganization Act to allow the District of Columbia to expend funds proposed for a fiscal year before such funds are approved by an Act of the Congress and signed into law.

Eliminates certain budget-submission requirements of the Mayor of the District of Columbia to the D.C. Council and the President.

Authorizes annual appropriations beginning with FY 1986 as the annual Federal payment to the District of Columbia.

Requires the District of Columbia to take budgetary action to offset any deficit occurring in its general fund.