Despite what some on both sides of the aisle might consider their best efforts, Democrats and Republicans couldn’t avoid the first federal government shutdown in seven years, and the third to take place under President Donald J. Trump.
In the days leading up to that fateful moment, Erica Williams expressed concern about what would become of D.C. residents who depend on federal programs. Williams told The Informer that, at this juncture, it’s only a question of how long it will take before them, and the local government for that matter, feel the burn of an inoperable federal government.
“Can we manage through that period of time without having to pull back on what services people have available to them?” Williams, executive director of the D.C. Fiscal Policy Institute (DCFPI), questioned. “Whether that’s Medicaid, SNAP, TANF or our WIC program, or other kinds of programs that are out there across a whole range of areas. Whether it’s workforce development or childcare, you name it.”
For 20 years, DCFPI has advocated for the creation of policy that prioritizes racial equity and justice for Black and brown D.C. residents. Throughout much of the second Trump presidency, organizers have been critical of federal imposition on local affairs. They have also railed against local and federal policy decisions, including that involving the summer reconciliation bill that gutted social safety net programs and spurred what’s estimated to be $197 million in future tax cuts for the wealthiest D.C. residents.
Amid all the conversation about a federal government shutdown, William said she’s also fearful of what would become of an already fragmented federal government workforce. According to Trump, several workers, many of them living in the D.C. metropolitan area, could be laid off in the event of a shutdown.
“We’ve already obviously sustained pretty massive federal layoffs that are already having an impact on our economy with the downgrade in our revenue over the next several years and the [projection] that we’re heading into a local recession,” Williams told The Informer. “So additional federal layoffs are going to be really damaging for us, potentially, and that’s going to have additional downward pressure on our economy and on our revenue at a time when we’re already feeling a lot of pressure.”
Looking Back: A Contentious Battle on the Hill
In the days and hours leading up to Oct. 1 — the beginning of the 2026 fiscal year — congressional Democrats and Republicans were still at an impasse about how to shape the budget needed to keep the federal government open.
Discussions stalled when Senate Democrats demanded an extension of enhanced Affordable Care Act tax credits and reversal of Medicaid cuts that were included in a stopgap measure proposed by Senate Republicans.
“[Senate Minority] Leader [Chuck] Schumer and I have made clear we are ready, willing and able to sit down and with anyone, anytime, any place to fund the government and to address the Republican health care crisis,” House Minority Speaker Rep. Hakeem Jeffries (D-NY) said shortly before the Senate vote.
GOP leaders have since responded, asking that health care spending discussions take place in the new fiscal year. Republicans also called Democrats’ demands an overture to an anti-Trump base and, more specifically, undocumented migrants.
Jeffries has since rebuffed that notion, citing that undocumented migrants don’t qualify for health care coverage.
With a shutdown on the horizon, other congressional members, including Sen. Chris Van Hollen (D-Md.), continued to rally around federal workers and Americans with pre-existing conditions, both of whom he said stand to suffer on Wednesday without a budget in place that reflects their needs.
“If we don’t defuse that bomb, people are going to see their health care premiums go up in the Affordable Care Act exchanges,” Van Hollen said during the Monday night press conference. “Four million Americans will lose health care altogether. Notices will start to go out in October – next week. And so, we want to keep the government open, but we want guardrails and safeguards, and we want to make sure we turn off this ticking time bomb.”
Van Hollen, who recounted recently speaking with people with pre-existing conditions whose clinical trials were disrupted after Trump-induced cuts, said that the president is adamant about consolidating power at the expense of federal government workers and marginalized people.
“They have been shutting down the parts of the government that they don’t like and beefing up the parts of the government that they want to focus on,” Van Hollen said. “So this has been going on since day one. Now, here we are, and Donald Trump is asking for a blank check from all of us to continue with this lawless activity. And this is a moment for members of Congress to say, ‘No – a lawless president does not get a blank check.’”
A Region in Trouble as Mayor Bowser Weighs in on Federal Budget Debacle
The loss of federal jobs has been compounded by declining tourism and a weakened university pipeline, leaving the District searching for a new identity.
“Our biggest strength is our workforce — a highly educated, highly skilled, motivated, mission-focused workforce,” Rep. James Walkinshaw (D) of Virginia recently said. “Any time one of those folks leaves to go somewhere else, that is a loss for our region.”
Walkinshaw has described hearing from workers in Northern Virginia every day about layoffs, foreclosures, and the painful decision to leave the region after years of service.
Rosie Allen-Herring, president and chief executive of United Way of the National Capital Area, said nonprofits across the region are struggling to keep up as requests for food, housing support, and healthcare assistance pour in.
Meanwhile, Clark Mercer, executive director of the Metropolitan Washington Council of Governments, and other regional leaders are launching a digital “one-stop shop” to help displaced workers find opportunities and navigate support services.
According to Brookings, the region’s unemployment rate has risen more than eight times faster than the national average since January. Private-sector job growth has flatlined, and more homes are for sale across the District and surrounding suburbs.
Credit scores reportedly are dropping more quickly than in other metro areas, signaling deepening financial strain. Economists warn that a prolonged shutdown layered on top of these cuts could set off a regional recession.
D.C. Mayor Muriel Bowser recently confirmed that, under a federal government shutdown, the D.C. government will continue daily operations. A staff member in D.C. Council Chair Phil Mendelson’s office would later tell The Informer that the only effects could concern federal grants.
In recent months, Bowser said that she’s aiming to induce private sector growth, and lessen the District’s economic reliance on federal government employment. On Tuesday, after presenting legislation she’s introducing to advance her Growth Agenda, Bowser lambasted Congress for falling short on what’s expected of the District government it often scrutinizes.
“We have to have a balanced budget,” Bowser said. “We can’t have ongoing and less continuing resolutions. We can’t be in a deficit. We have to be balanced, and we should expect the Congress of the United States to do the exact same thing.”
In her remarks, Bowser went on to weigh in on what a federal government shutdown means for the District metropolitan region.
“We are impacted because many of our residents and the residents in Maryland and Virginia have a lot of anxiety about what it means for their next paycheck or what it means for their job,” Bowser said. “And we certainly hope that the president and the Congress can focus on their work.”