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“The Trump administration has made enormous headway in reducing the size of the federal bureaucracy, even as it has expanded federal reach in other ways. With the establishment of the Department of Government Efficiency (DOGE), the White House has accomplished the following: LAID OFF APPROXIMATELY 300,000 FEDERAL WORKERS, TERMINATED OVER 13,000 FEDERAL CONTRACTS AND OVER 15,000 FEDERAL GRANTS and REDUCED OFFICE SPACE,” according to a report issued by The Brookings Institution late last week.
“The White House’s drive to transform the federal government is likely to stick and even expand over time. First, Congress has codified many of Trump’s executive actions through the passage of the One Big Beautiful Bill Act and the Rescissions Act of 2025, which included $9 billion in spending cuts recommended by DOGE. ………………Beyond federal downsizing, there are other federal actions that could also exact unique consequences on the DMV region. From the National Guard deployment and immigration enforcement actions to the federal takeover of key assets such as Union Station and the Kennedy Center, these actions could shape consumer spending and investment in the local economy,” the lengthy report says.
Not only is the “DMV” region, Washington, DC, Maryland and Virginia, area the global headquarters of the US government, but it is a major economic engine for the US as well as the area. The area is the sixth-largest economy in the US. In fact, the presence of the federal government is linked to the economy of the DMV area and the continued “unraveling” could have a negative effect on the entire region that has depended on the government to thrive as it has for years.
Another excerpt from the new DMV Monitor states that the area has “shed federal jobs at a faster rate than the nation, while private sector job growth has plateaued.,,,,,,,,,,Of the 55 US metro areas with populations greater than 1 million, the DMV region ranked 43rd on overall job growth between January and June of 2025.” Another nugget gleaned from the Monitor is that the “private sector jobs that have been gained in the DMV since January are concentrated in industries misaligned with the skills, fields of expertise and professional backgrounds of most displaced federal workers.”
On the subject of real estate, the Brookings’ Monitor claims that the “number of homes for sale in the DMV region is up by 64% since last June, far surpassing the rate or change nationally and in other major metro areas.” No surprise there says this blogger.
In conclusion the three authors of the Monitor paper claim that “the DMV’s region’s economy has grown even weaker than the nation in many categories due to the Trump administration’s seismic actions to shrink the federal government.” The three authors ended with: “The future health and vitality of America’s capital region is uncertain. What is certain is that federal, state and local leaders as well as the regional civic community have the chance to work together to shape its destiny, even as the federal government transforms itself. The region is too important — it is a major economic engine, a center of opportunity for families and a welcome mat to the world.’
In the future, The Brookings Institution will continue to update the DMV Monitor to empower leaders in the region with information, context and insight.
“And as we all know, that 300,000 figure of laid off federal workers will go up when President Trump and his Republican cronies shut down the government because they refuse to negotiate “in good faith” with Democrats,” says this blogger.
The Brookings Institution is committed to quality, independence and impact. A non-profit it is funded by a diverse array of funders and based in Washington, DC.