Former DC Circulator drivers and other staff have filed a lawsuit claiming they still have not seen a dime from the sale of the system’s buses and equipment. The Circulator shut down service at the end of 2024, and hundreds of workers lost their jobs in a phased closure. According to the plaintiffs, money from selling off buses and other assets was supposed to cover severance, back pay, and job transition support for those employees.
As reported by DC News Now, the complaint asks a judge to force the release of sale proceeds that workers say are still being withheld. The filing, dated April 7, 2026, says former employees have been waiting months while the buses and equipment changed hands, with no payout in sight.
Council set aside sale proceeds for employees
The D.C. Council passed emergency legislation in late 2024 that required money from any sale, lease, or transfer of DC Circulator assets to be deposited into a dedicated DC Circulator Fund and reserved for laid-off workers while they searched for new jobs, as laid out in the council’s enrolled resolution. D.C. Council documents spell out that requirement. Local reporting later noted that the buses were sold to private buyers, yet former staffers say the funds they were promised under that law never arrived.
How the city handled liquidation
Agency records show that DDOT and the Office of Contracting and Procurement handled the disposal of vehicles through surplus procedures and online listings, with OCP’s Surplus Property Division setting up listings and valuation ranges for different bus models, according to DDOT’s pre-hearing responses to the Council. DDOT documents also describe the phased wind-down schedule and the kinds of costs the city expected to face as the program shut down.
Union and workers push back
The Amalgamated Transit Union Local 689, which represented many Circulator drivers, has repeatedly pressed the city for answers and payment since the phase-out was announced. Coverage of rallies and oversight hearings captured drivers’ mounting frustration and the union’s demands that officials follow through on commitments to workers during the shutdown. Washingtonian reporting includes on-the-ground accounts of those protests and the union’s public statements.
Legal stakes and what plaintiffs want
The lawsuit focuses on forcing the release of proceeds that plaintiffs say the Council clearly earmarked for severance and workforce support. If a court enforces that language, the decision could unlock funds for back pay and transition programs for the laid-off staff. Plaintiffs’ attorneys are asking the court for swift action to move money into the DC Circulator Fund so former employees can finally receive the compensation the legislation envisioned, according to DC News Now.
For now, the case is pending in D.C. courts, and former Circulator workers say they are pushing for a fast resolution so the promised funds actually reach them. The Council’s emergency measure and DDOT’s liquidation paperwork are expected to be key documents in the legal fight as both sides argue over what happened to the bus sale money.
