WASHINGTON (DC News Now) — D.C. leaders are preparing for major economic impacts as changes at the federal level take a direct hit at the District’s budget.
According to city projections, mass reductions to the federal workforce will create a more than $1 billion loss in revenue over the next three years. If Congress passes its current short-term spending bill this week, it’ll mean an immediate $1 billion loss to the District’s budget.
“I’m concerned obviously because a lot of what we’re seeing happen on Capitol Hill is happening through no fault of local District officials,” said At-Large Councilmember Kenyan McDuffie. “We’re talking about a city that is well run, that has been recognized with how well we’ve operated, and frankly, the proof is in the numbers.”
Despite that, McDuffie and other councilmembers are planning for an uncertain future.
On Wednesday, McDuffie hosted a public round table to discuss ways to make the economy more resilient.
“We need to diversify our economy,” said Aakash Thakker, chief acquisitions officer for EYA.
Thakker testified at the meeting and said D.C.’s economic development office must attract more private sector businesses to bolster the economy.
“[We need] a team of well paid, highly qualified professionals with a strategy in place that goes out and recruits the best and brightest companies from around the country,” he said.
For Chinyere Hubbard, president of the DC Chamber of Commerce, upskilling and reskilling former members of the federal workforce is also key.
“We should be looking at emerging industries like AI, cyber security, manufacturing. Skills that can weather times like this and reskilling and upskilling some of our current workforce,” she explained. “These are industries that are growing, and we have a strong tech force right here in this city, so we really should leverage on that.”
Others suggested suspending some District policies—at least temporarily—that make it more difficult for developers to do business in D.C. This includes shortening the eviction timeline and rolling back who is eligible for the Tenants Opportunity to Purchase Act program (TOPA).
