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Statement on the Federal Government Shutdown’s Impact of the District of Columbia Government’s Revenue Estimates

Tuesday, January 22, 2019

(Washington, DC) – Today, the Office of the Chief Financial Officer released the results of an analysis of economic activity and tax revenues related to the partial federal government shutdown. In response to the results, Mayor Bowser released the following statement:

“Today marks the beginning of the second month of the federal government shutdown, and the District of Columbia’s Chief Financial Officer has confirmed the ripple effect of this unnecessary and unprecedented shutdown.

“More than 144,000 federal workers and contractors in the DC region are directly impacted by the shutdown, including over 53,000 Washingtonians. We have thousands of dedicated public servants who want to work, who should be working, and who have jobs that are essential to the functioning of our government. But they can’t go to work because they’re locked out. And this lockout is having a devastating impact on their financial stability.

“But it’s not just federal workers and their families who are impacted by the shutdown—it is restaurant workers, child care providers, hair salons, and so many others. With less money and more economic anxiety, people are spending less, and we are seeing the effects throughout the regional economy. According to this new report by our Chief Financial Officer, we are already facing roughly $40 million in revenue loss, and if the shutdown continues until February 15th, the District of Columbia Government could face upwards of $85 million in lost revenue.

“Fortunately, because we have managed our finances effectively and built up strong cash reserves, the District of Columbia is in a strong position to step up and assist residents. And while we are confident that no immediate changes are on the horizon, we know that if this shutdown continues, at some point, the projections will become more dire and it will impact the services we provide to our residents.

“Once again, in recognizing that it is workers, families, and small businesses that are paying the highest price, we urge President Trump to work with Congress to bring an immediate end to this shutdown.”