Founding1790
Residence Act Creates Washington, D.C.
President Washington signed the Residence Act, establishing a permanent federal capital along the Potomac River. The act was the product of a famous dinner compromise between Hamilton, Jefferson, and Madison, trading the capital's southern location for federal assumption of state debts.
Why It Matters
The creation of Washington, D.C. as a distinct federal district reflected the Founders' belief that the national government should not be dependent on any single state, while the compromise demonstrated the art of political negotiation.