This Tuesday’s meeting of the Falls Church Economic Development Authority ended on a downer note when the region’s overriding issue of the year was verbalized.
It had to do with the impact so far on the local economy and businesses of the federal job layoffs imposed by the Trump administration since the inauguration of Trump to a second term just over four months ago.
No one at the meeting chaired by former City Council member Ross Litkenhous had any solid data to report, but some anecdotal evidence was not good. One board member said that she’d heard from a couple of local restaurant owners that their business is way down, especially their lunch business.
While some of that may be due to the return to their business offices of folks who live here, it was conceded that most of it is undoubtedly due to penny pinching owing to the Trump layoffs, and the worst of it has hardly yet arrived.
“The couple of restaurateurs I’ve talked to say their lunch business is off a cliff,” said Litkenhous.
While Falls Church has the highest percentage in the region of its adult population working (or working until a couple months ago) for the federal government (though only 2,016 souls, constituting 16.4 percent of the total in the workforce here), according to the Northern Virginia Regional Commission, the impact on the local economy is clearly due to the region-wide effect among a total of 196,252 federal employees of the layoffs.
Becky Witsman, the City’s Economic Development Division chief, said a report on the region-wide impact of layoffs was due imminently from the Northern Virginia Economic Development Alliance, a body on which she serves as the Falls Church representative, but as the News-Press went to press this week, no report has yet surfaced.
The alliance has produced what is calledThe Pivot, described as “a timely response to the sweeping changes across the federal landscape — from massive workforce reductions to budget cuts and agency closures — impacting federal employees, contractors, and nonprofit professionals alike. This initiative helps those navigating career transitions move forward with confidence, clarity, and renewed purpose.”
Yet, the EDA and local Chamber of Commerce continue to celebrate the opening of new restaurants in Falls Church: Dok Khao Thai Eatery, BurgerFi, Honoo Ramen and Bar, Paris Baguette, Stratford Garden, Rashfa Restaurant, Seoul Spice, Tatte, My Home Thai, Fish Taco, Semicolon Cafe, Lil’ Cakes Creamery, Little Falls Cafe, and Grill Marx, all set to open sometime over the summer.
It was discussed that emergency meetings to address the imminent crisis will be held in in August or September. The unfolding crisis in Northern Virginia is sending shock waves over the entire commonwealth, as this region accounts for 42 percent of Virginia’s total GDP.
Not only federal employment, but also housing, food and health care resources are suffering, too, along with non-profits, impacting the region’s most vulnerable populations.
For example, Arlington’s Department of Human Services, which has received $42.3 million in federal funds in just the past year, is at grave risk now, as the federal money had been used to help with housing, homeless shelters, medical care, including Medicaid, immunizations and substance use treatment, food insecurity including SNAP benefits and food assistance centers, even as the numbers of residents seeking food assistance has been rising rapidly.
Pleas for housing assistance, eviction diversion programs, initiatives aimed at retaining highly skilled workers and childcare support have gone out from elected boards, too.
Takis Karantonis, Arlington County board chair, told Arlington magazine’s Helen Partridge that the rising food insecurity is “a canary in the coal mine” signalling coming greater economic pain.
State Del. Alfonso Lopez cautioned, “We need to be realistic about where the priorities are going to have to be in terms of social safety net programs that are going to be hurt. They are going to be hurt.”
He surmised that Virginia will soon need to tap the surplus in this year’s budget to offset cuts in Medicare, Medicaid, veterans benefits and education funding.
In Arlington, hotel occupancy has fallen off eight percent in March and April.
“Visitors come and they spend money on hotels, they spend money in our restaurants and our retail establishments, and so we expect to see secondary effects of those declines,” the head of Arlington’s development authority said.
In Fairfax, the sales tax numbers in May were down 5.3 percent compared to just the month before.