In news that’s likely to lead the day, WUSA9 reported late last night that embattled Councilmember Harry Thomas, Jr. (D-Ward 5) has told close confidantes and colleagues that he’ll resign as part of a plea deal with federal prosecutors over $300,000 in city funds he allegedly used on personal expenses like a luxury SUV and travel. Moreover, he’s reportedly set to plead guilty to one felony and serve a prison sentence of two to three years.

Still, nothing is yet set in stone — NBC4’s Tom Sherwood tweeted last night that no indictment had yet been handed down and that no agreement has yet been reached on possible jail time. (Under existing D.C. law, if Thomas were sent to jail for a felony, he’s be forced to give up his seat anyhow.) WUSA9’s Bruce Johnson is sticking to the story, though, tweeting this morning that Thomas is set to meet with the feds tomorrow.

What is clear is that Thomas failed to pay $50,000 he owed the District by December 31, writes the Post’s Mike DeBonis. The money is part of a payment plan he established with D.C. Attorney General Irv Nathan last July as a means to pay back the $300,000 he is accused of taking. (As part of the settlement, Thomas claimed no guilt for the misappropriation of the funds.) He already paid $50,000, and was set to keep making payments through 2013.

And as we reported last month, Thomas is also on the hook for $16,000 in unpaid student loans dating back 30 years; according to a court filing unsealed yesterday, he’ll be making monthly payments of $494.

Should Thomas resign, his seat will remain empty until a special election can be held. Because of timing requirements written into the D.C. Charter, though, a Ward 5 special election likely wouldn’t coincide with the April 3 primary. In the meantime, though, D.C. Council Chair Kwame Brown said yesterday that Ward 5 residents would be cared for.