WASHINGTON — In a meeting on Wednesday morning, D.C. Mayor Muriel Bowser stated that the financial impact of federal job losses is significant and will continue to be so, with an estimated loss of more than $300 million in each of the next three fiscal years.
The Chief Financial Officer’s (CFO) February revenue forecast for FY26 is $325 million lower than the initial estimate in December 2024, before the Trump administration’s massive layoffs of federal employees began.
Over 191,000 federal employees have workstations in D.C., and over 71,000 D.C. residents work for federal agencies, according to the Mayor’s Office.
“A lot of our Washingtonians are in shock, angry, they are anxious about their futures and how they are going to take care of their families,” Bowser told the crowd.
As layoffs have progressed since Jan. 20, Bowser stated that the District now has millions less to work with than anticipated. She anticipates that the D.C. government will be more strategic in its investment decisions.
“We have to make investments that are focused on growth,” she told me.
Despite the multimillion-dollar hit to the District’s budget, Bowser believes the Chief Financial Officer’s forecast can change.
She urged the Trump administration to halt job cuts, extend the buyout period, and/or postpone building consolidations. She also stated that the courts should pause job cuts to ensure their legality.
All or one of those factors, she said, could affect the CFO’s estimate. Bowser urged people to keep in mind that the forecast is for up to four years in some cases, which means that a lot could change between FY26 and FY28.
After addressing the immediate effects of the administration’s massive layoffs, D.C. department heads presented a number of ways in which agencies are assisting impacted federal employees, including the establishment of a new centralized hub with resources.
