Washington Council of Governments warns Trump administration cutbacks could hit DMV hard

WASHINGTON - The Metropolitan Washington Council of Governments put out a stark warning on Wednesday, saying the DMV could be facing "gloom and doom" as a result of Trump administration cutbacks. 

By the numbers:

At a Board of Directors meeting, they said right now, the entire region could see at least a $5 billion revenue hit just from federal job losses alone. But a panel of experts warned that could only be the tip of the iceberg as job losses are likely to shake the housing market, restaurants, businesses and contractors.

"A 10% cut to the federal workforce here in this region that’s about 40,000 individuals and you just average the numbers of what the average salary is — that’s taking $5 billion out of our regional economy," said Clark Mercer, executive director of the Metropolitan Washington Council of Governments.

Wednesday’s meeting looked at the economic impact of the new administration on the DMV. In addition to $5 billion in lost revenue from job cuts, a startling survey of restaurant owners shows that they expect 44% of casual restaurants in the DMV will close their doors in 2025. 

READ MORE: 40% of DC restaurants likely to close by the end of the year, survey shows

"It’s an average of 27 lost jobs every time we lose a restaurant," said Shawn Townsend with the Washington Restaurant Association.

What they're saying:

The way forward will likely mean more economic cooperation between DMV governments than ever before. 

Montgomery County Chief Administrative Officer Rich Maldenado suggested a "non-aggression pact among the region." 

"So that we don’t just try to pick off each other’s businesses," he said. 

That kind of agreement wasn’t always around. There was a lot of back and forth in the recent battle for Amazon’s HQ2, and the fight for the new FBI headquarters showed that the DMV can often be "everyone for themselves" when money’s at stake.

But with the Trump administration zeroing in on DMV jobs, there is a call for an economic truce.

"I think there was a time period when we were a little more competitive and I think the situation we have today is going to require us to do things differently," Fairfax County Supervisor Rodney L. Lusk said. 

What's next:

There were also serious warnings in the meeting that the upcoming World Pride Celebration in D.C. could see much smaller than expected crowds and income, as some foreign nations are indicating they are scaling back participation in response to the Trump administration’s efforts to end "diversity, equity & inclusion" policies in the U.S. government.