Bowser hosted the town hall to discuss the impact of federal job losses on the National Capital Region and to share resources with D.C. residents such as unemployment insurance.
A new public service career hub has been launched with resources about unemployment compensation. Bowser also encouraged residents who lost their federal jobs to apply for government careers in D.C.
Thousands of those federal workers have been laid off recently under President Donald Trump’s cost-cutting campaign.
The new Department of Government Efficiency (DOGE), led by Elon Musk, is auditing federal agencies to identify waste and inefficiencies. Its findings have led to reduction of federal workforce as part of efforts to curb government spending.
Bowser stated that the financial impact of federal job losses is significant for the city, citing an anticipated loss of over $300 million in each of the next three fiscal years.
The mayor last week also received concerning news about D.C.’s financial state. The city is facing major consequences from the federal cuts, according to Glen Lee, the district’s chief financial officer.
Lee forecast that 40,000 more D.C.-based jobs will be cut from the federal workforce over the next three years, a reduction of 21 percent. His report also identifies a $21.6 million shortfall for this upcoming year.
“Nationally, over 75,000 federal employees have accepted buyouts, many probationary federal employees have been fired, and the administration has instituted a hiring freeze allowing only one replacement employee for every four that leave.”
Lee also noted that fewer federal employees in the region will lead to a decline in spending on restaurants, retail, transportation, and other taxable goods and services, especially for those local businesses that rely on federal workers.
According to Lee, there’s a lot of uncertainty around D.C.’s economic forecast as some of Trump’s executive actions have been, and continue to be, challenged in the courts.
Trump praised the federal government overhaul during his speech at the March 4 joint session of Congress, giving credit to DOGE, his new advisory panel, for targeting wasteful spending amid budget deficit and record national debt.