The U.S. government shut down on October 1, 2025, furloughing thousands of federal employees. Over 350,000 of these workers are concentrated in the Washington-Arlington-Alexandria, DC-VA-MD-WV metropolitan statistical area (D.C. MSA), according to statistics maintained by the St. Louis Fed.1 Estimates suggest the number could be approximately 50% higher when federal contractors are included. While there have been significant federal cutbacks under the Trump administration in 2025, the ongoing shutdown could further accelerate overall job losses.
In addition to furloughs—which could impact more than 750,000 federal employees nationwide, according to the Congressional Budget Office2 —threats of a permanent reduction to the federal workforce during this time period could cause significant financial hardship for individuals dependent on federal employment. While the full impact of the shutdown remains uncertain at…