Federal File

The District of Columbia is broke. The National Education Association is under political fire. And last week, union and city officials announced what seems like a mutually beneficial deal.

Keith B. Geiger, the president of the 2.2 million-member union, gave the capital city's government a check for $100,000 and a pledge to pay more if other institutions chip in too.

The local City Council, faced with devastating budget cuts, hopes the Washington-based NEA's move will be the first step in establishing a "payment in lieu of taxes program" for tax-exempt institutions that wish...