He played a significant role in establishing and staffing the three Cabinet departments, and his influence helped Thomas Jefferson become the first Secretary of State.[82] At the start of the first Congress, he introduced a tariff bill similar to the one he had advocated for under the Articles of the Confederation,[83] and Congress established a federal tariff on imports by enacting the Tariff of 1789.[84] The following year, Secretary of the Treasury Hamilton introduced an ambitious economic program that called for the federal assumption of state debts and the funding of that debt through the issuance of federal securities. Hamilton's plan favored Northern speculators and was disadvantageous to states, such as Virginia, that had already paid off most of their debt; Madison emerged as one of the principal Congressional opponents of the plan.[85] After prolonged legislative deadlock, Madison, Jefferson, and Hamilton agreed to the Compromise of 1790, which provided for the enactment of Hamilton's assumption plan, as part of the Funding Act of 1790. In return, Congress passed the Residence Act, which established the federal capital district of Washington, D.C., on the Potomac River.