Residence Act

The Residence Act of 1790, officially titled An Act for establishing the temporary and permanent seat of the Government of the United States, is the United States federal law that settled the question of locating the capital of the United States, selecting a site along the Potomac River. The federal government was located in New York City at the time the bill was passed and had previously been located in Philadelphia, Annapolis, and several other locations.

Overview

Congress passed the Residence Act as part of a compromise brokered between James Madison, Thomas Jefferson, and Alexander Hamilton. Madison and Jefferson favored a southerly site for the capital on the Potomac River, but they lacked a majority to pass the measure through Congress. Meanwhile, Hamilton was pushing for Congress to pass the Assumption Bill, to allow the Federal government to assume debts accumulated by the states during the American Revolutionary War. With the compromise, Hamilton was able to muster support from the New York State delegates for the Potomac site, while four delegates (all from districts bordering the Potomac) switched from opposition to support for the Assumption Bill.