A brief History of how DC ended up in this situation:
The Start:
Founded in 1790 to serve as the capital of the United States of America as per the Constitutions requirement of the capital not being a part of a state. Started on land donated by Maryland and Virginia (although the virginia land was given back in 1847).
The Current Situation and how we got here:
Like other citizens living in states, D.C. citizens pay full federal and local taxes, but they do not get the privileges of representation and independence that the states have. Also, unlike the states, when D.C. receives federal funding, the funding comes with directives on how the money should be spent. D.C. residents do not have voting representatives in the Senate or in the House of Representatives to protect their interests. They have nonvoting representation that can sit on committees, but the representatives cannot vote on bills affecting their District. Senators and members of Congress from the states have voting powers. D.C. residents have a limited Presidential vote equal to the smallest state regardless of their population, and have only had the right to vote for the President since the 1964 election. Unlike states who can appoint their own local judges, the President appoints D.C.’s local judges. Congress only delegated power to a locally elected mayor and 13-member city council in 1974, and Congress continues to review and modify D.C.’s laws and budget. No states have their laws and budget reviewed.
Why this is such a big problem:
The Federal Government tries to control everything the city does. Especially when congress is controled by the Republican Party they put a stop to any "liberal" policies the city wants.
For Example:
This website gives examples of congressional interference. preventing dc from doing things that its citizens voted for.