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The National Mall (the area containing The White House, Capitol, Supreme Court, and all the monuments and Smithsonian museums) would remain a Federal District, while the rest of Washington would become the State of New Columbia.
Democrats oppose this because there would be no new Senate seats gained and the one additional House set for Maryland would likely come at the expense of heavily Democratic-leaning California.
There used to be several towns within the counties until Washington was consolidated as one city and Alexandria was given back to Virginia due to slavery and other disagreements, as well as the theories that the seat of government wouldn't get big enough to need it and that the District would not develop much of a local population.
Both ended up happening, of course, and several major buildings such as The Pentagon are across the Potomac River in what is now known as Arlington, Virginia.
Statehood would add two new Senate seats and one House seat permanently under the Left's control.
Republicans tend to favor "retrocession", meaning that all of DC except for the National Mall would be returned to Maryland (which donated the land for the District in the first place).