Not only does DC depend on the US for local funding, it suffers an incredible amount of intervention into its internal affairs. Some of this might be necessary for the national interest, however, often it is simply idealogical concerns, for the most recent example, when Congress prevented District funds for paying for abortions. However, Congress has experimented with various education programs and other initiatives without local consent. As long as DC remains under the exclusive jurisdiction of Congress no mere act can protect it from the possibility of having its rights trampled upon.
The only way to ensure that DC citizens get a chance to control their own affairs is to give them representation in Congress, remove the District from direct Federal control or both.
One way to do this is through a constitutional amendment, which is notoriously difficult. Another way is through a law to give it home rule and representation. However, this law would likely be unconstitutional and could be revoked by Congress at any time. The two options left are statehood and retrocession, in which the residential areas would be returned to Maryland as an independent city.
The democratic way to deal with this would be to hold a plebiscite on the matter and let district residents choose which way they want to go, then for Congress to enact the result. Most likely statehood would win, and residents would finally have the equal representation they deserve.
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