Washington is suffering from the economic consequences of government shutdown

• The Capital Area Food Bank is preparing for an increase in demand for assistance.
• The unemployment situation in the capital remains the highest in the country.
• Local businesses are experiencing significant losses due to the government shutdown.

Washington (AP) — The prolonged government shutdown, massive layoffs of federal employees, and the new federal assistance program have led to an increase in demand for assistance at the Capital Area Food Bank, which is preparing for an increase in the number of people needing assistance before the holiday season.

This food bank serves 400 food pantries and charitable organizations in Washington, northern Virginia, and two counties in Maryland. It is expected to have 8 million more clients this year than was planned for this budget year — an increase of more than 20%.

Radha Mutia, the general director of the organization, noted that the area is particularly suffering due to the events that have unfolded over the past year. Washington has seen impacts from a series of administrative decisions by Trump, from layoffs of federal workers to the infringement of civil rights organizations in the area. The additional impact from the shutdown, which has led to the furlough of workers and the suspension of funding for ongoing assistance, only worsens the economic situation.

Recent data from the Office of Income Analysis of the Washington area does not take into account changes in the workforce since the moment of the shutdown, which began on January 1. However, even the employment rate for the last season shows that the seasonal unemployment rate stands at 6%, compared to the most recent national figure of 4.3%, and remains the highest in the country for several months.

Economic difficulties are also reflected in political life. Democrat Abigail Spanberger won the gubernatorial election in Virginia, focusing her campaign on the impact of President Trump's policies on the state's economy.

Local businesses are also feeling the strain. Washington has the largest share of federal workers in the country — nearly 20%, and about 150,000 federal workers live in this area. By Monday, hundreds of thousands of federal workers across the country were expected to be furloughed. Nationally, more than 670,000 federal workers were sent home, while nearly 730,000 work without pay, according to data from the Bipartisan Policy Center.

During the shutdown, the number of federal workers in the Washington metropolitan area decreased by approximately a quarter compared to previous indicators. Food establishments, which have already struggled with low margins due to seasonal fluctuations, and the consequences of the mobilization of National Guardsmen on city streets, face new challenges at a time when owners hoped to recover.

Tracy Hadden Loh, a research associate at Brookings Metro, noted that the absence of pay creates serious problems with cash flow for federal workers, which may lead to defaults on personal loans and student loans. For local businesses, especially those that depend on discretionary spending by federal workers, this could register a situation during the quarter with high sales.

Small businesses are also feeling the impact of this spending decline. For example, the Queen Vic bar in southeast Washington reported a drop in business by nearly 50% compared to the previous period before the shutdown.

One person who is facing difficulties is Tea Pryce, who was laid off from her job at the University of the World in the U.S. in February of this year. She and her husband, a contractor, have also lost their jobs. Since then, they have been living on savings, Medicaid, and SNAP.

This situation forced Pryce to turn to assistance from the food pantry in Arlington, Virginia, for the first time in her life. She plans to return to her hometown in the Seattle area, as she cannot afford to stay in the region.

The Capital Area Food Bank is preparing for an increase in demand, expecting to provide 1 million more meals this month than was planned before the shutdown.

"We are focused on the urgent needs of people who need assistance," said Mutia, but she also noted that the situation may have long-term consequences, as people tend to rely on their savings for basic needs.

Tags: USA/Politics/Economy