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D.C. region braces for shock from Trump effect on spending, federal workforce
D.C. region braces for shock from Trump effect on spending, federal workforce
By Robert McCartney February 12 at 6:18 PM
The Washington region’s prospects aren’t all bad under the Trump administration. A top local economist joked at a recent business conference that demonstrators flocking to rallies in the District will drop bundles of cash, spurring growth from “protest tourism.” ... But the area is bracing for shock at the hands of a reinvent-the-rules president who routinely insults the city and a Republican-led Congress that for years has sought to shrink the federal government that is the area’s principal employer.
Officials and analysts expect sharp cuts in federal nondefense spending, which would strain local budgets nationwide and pose a particular threat to economic growth here. In addition, proposed tax changes risk stalling the Washington area’s high-priority efforts to provide more affordable housing. And business leaders say President Trump’s demonization of the capital, highlighted by his calls to “drain the swamp,” has hurt the region’s reputation as a good place to work.
....
No one knows what the full impact will be, because the administration and congressional leaders have sent mixed signals about their intentions. And since the White House does not release details of its budget proposal for several weeks, local jurisdictions are making plans for next year with no specific information on how much federal support they’re going to lose. ... But the region is widely expected to fare worse than most because of steps to restrict the size and cost of the federal workforce — an effort already begun with the president’s early freeze on federal hiring. .... Trump’s pick for national budget director, Rep. Mick Mulvaney (R-S.C.), is an outspoken advocate for slashing federal budgets. Republicans in Congress and conservative groups advising the White House want to shrink programs including Medicaid, food stamps, housing assistance and Head Start.
....
Terry Clower, director of George Mason University’s Center for Regional Analysis, said in an interview that a federal pay freeze, as proposed by some Republicans, would deprive the regional economy of more than $900 million a year in cost-of-living increases alone. ... But at a conference in Falls Church on Feb. 1, Clower also noted, with a smile, that the new administration was having at least some positive impact. ... Spending by anti-Trump demonstrators visiting from the suburbs or out of town, he quipped, could become “the biggest growth sector in our economy.”
Patricia Sullivan contributed to this report.
Robert McCartney is The Post’s senior regional correspondent, covering politics and policy in the greater Washington, D.C area. Follow @McCartneyWP
By Robert McCartney February 12 at 6:18 PM
The Washington region’s prospects aren’t all bad under the Trump administration. A top local economist joked at a recent business conference that demonstrators flocking to rallies in the District will drop bundles of cash, spurring growth from “protest tourism.” ... But the area is bracing for shock at the hands of a reinvent-the-rules president who routinely insults the city and a Republican-led Congress that for years has sought to shrink the federal government that is the area’s principal employer.
Officials and analysts expect sharp cuts in federal nondefense spending, which would strain local budgets nationwide and pose a particular threat to economic growth here. In addition, proposed tax changes risk stalling the Washington area’s high-priority efforts to provide more affordable housing. And business leaders say President Trump’s demonization of the capital, highlighted by his calls to “drain the swamp,” has hurt the region’s reputation as a good place to work.
....
No one knows what the full impact will be, because the administration and congressional leaders have sent mixed signals about their intentions. And since the White House does not release details of its budget proposal for several weeks, local jurisdictions are making plans for next year with no specific information on how much federal support they’re going to lose. ... But the region is widely expected to fare worse than most because of steps to restrict the size and cost of the federal workforce — an effort already begun with the president’s early freeze on federal hiring. .... Trump’s pick for national budget director, Rep. Mick Mulvaney (R-S.C.), is an outspoken advocate for slashing federal budgets. Republicans in Congress and conservative groups advising the White House want to shrink programs including Medicaid, food stamps, housing assistance and Head Start.
....
Terry Clower, director of George Mason University’s Center for Regional Analysis, said in an interview that a federal pay freeze, as proposed by some Republicans, would deprive the regional economy of more than $900 million a year in cost-of-living increases alone. ... But at a conference in Falls Church on Feb. 1, Clower also noted, with a smile, that the new administration was having at least some positive impact. ... Spending by anti-Trump demonstrators visiting from the suburbs or out of town, he quipped, could become “the biggest growth sector in our economy.”
Patricia Sullivan contributed to this report.
Robert McCartney is The Post’s senior regional correspondent, covering politics and policy in the greater Washington, D.C area. Follow @McCartneyWP
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