Amid growing concerns about federal workforce reductions on Virginia’s economy, a rapid spate of activity is underway in Virginia aimed at helping mitigate the impact not only for federal employees, but for the many who stand to be impacted who work for major government contractors.
While Virginia Gov. Glenn Youngkin, a Republican, is quoted defending the Trump administration’s federal workforce cuts as “needed due to the bloat of federal government,” Virginia House of Delegates Speaker Don Scott has appointed Falls Church’s Del. Marcus Simon to the newly formed Emergency Committee on the Impacts of Federal Workforce and Funding Reductions.
The committee’s work will be to assess and respond to potential job losses and budget shortfalls stemming from federal policy changes.
“Virginia is home to nearly 145,000 federal civilian employees, and they are a cornerstone of our economy,” said Simon. “These are dedicated professionals who provide essential services—not just to Virginians, but to the entire country. When the federal government makes drastic cuts, we feel the impact immediately in our communities, our state budget, and our local economies.”
One area response has come in the form of a town hall for federal workers and contractors that will be held next Tuesday, Feb. 25, at 6:30 p.m. at the Arlington Central Library, 1015 N. Quincy St.
Representatives providing “labor, legal and policy perspectives” will be at the event, hosted by the library. “To discuss the growing threats to federal worker and contractor rights under the Trump administration.”
“Understand your rights to protect yourself and prepare for further uncertainty in this federal employment landscape,” a promotion of the event reads. “We will discuss available resources to protect yourself at your current job, what to do if laid off, and how to find assistance and new employment should the need arise.”
Meanwhile, help wanted ads from both Fairfax County and the City of Falls Church are being circulated, including an ad in this edition of the News-Press that promises “competitive pay, excellent benefits, and career growth.”
On the other hand, it may be too early to tell, but there is as yet no evidence of a mass exodus from the region, the CEO of the Northern Virginia Association of Realtors, Ryan McLaughlin, told the monthly luncheon of the Falls Church Chamber of Commerce this Tuesday.
In fact, he said data to date shows a marked decline in homes on the market, down seven percent in Fairfax and down two percent in Arlington, compared to a year ago. This contrasts to some false rumors floating on social media, he noted.
Also this week, Fairfax Supervisor James Walkinshaw and board chair McKay got the Fairfax County Board OK for a letter to Gov. Youngkin calling on him to provide a dedicated resource hub for federal workers and contractors impacted by the “drastic actions being taken to reduce the size of the federal government,” as McKay wrote this week.
He said that Fairfax County has a dedicated page on its website on “Help for Residents Affected by Federal Workforce Restructuring.”
“We will continue to thoroughly evaluate and respond to actions taken by this administration that threaten County residents or our economy. Our Board will be having a committee meeting in the coming weeks to have a thorough discussion on potential impacts to the County.” McKay said.
On the House of Delegates’ emergency committee, Del. Simon said, “The move comes in response to workforce reductions announced by the Trump Administration, including a hiring freeze that began Jan. 20, and a deferred resignation program aimed at reducing federal employment by 10 percent. Agencies have been ordered to develop significant workforce reduction plans, including a proposed 70 percent cut at the U.S. Office of Personnel Management.
“The numbers are staggering,” Simon noted. “We’re already seeing the effects in constituent service requests, in legislation we’ve worked on, and in the state budget. This is not just about job losses—it’s about economic stability for families and businesses across Virginia.”
The potential impact extends beyond federal employees. In 2023, Virginia received $106 billion in federal contract awards. Any decline in these contracts could disrupt key industries and threaten thousands of additional jobs, Del. Simon noted. “Further complicating the situation, the U.S. Office of Management and Budget (OMB) recently suspended certain federal financial assistance disbursements, creating uncertainty for state-funded programs.”
“Virginia relies on federal funding to maintain critical services,” Simon explained. “If that support is cut off abruptly, we’ll be forced to make tough decisions to keep our budget balanced, as required by our constitution.”
The Emergency Committee will gather data on the projected scope of workforce and funding reductions, evaluate their impact on Virginia’s economy, and work with experts, business leaders, and community representatives to develop strategies for mitigating the fallout.
“This is about being proactive,” Simon emphasized. “We need to get ahead of these challenges and put forward actionable solutions to protect Virginia’s workforce and economy.”
“This isn’t just about numbers on a spreadsheet—it’s about real people, real jobs, and real consequences for our communities,” Simon said. “I am committed to ensuring that Virginia remains strong, competitive, and prepared for whatever comes next.”
Del. David Bulova of Fairfax County, tapped to chair the Emergency Committee, said, “My office has received hundreds of emails and calls from constituents expressing deep concern about reductions in the federal workforce and proposed cuts to federal funding. Virginia is home to nearly 145,000 civilian employees and is the top state in the nation for federal contracts – totaling $106 billion in value. In addition, Virginia relies on its partnership with the federal government to deliver critical services – including Medicaid, education, transportation, and broadband deployment, just to name a few.
“While the Virginia General Assembly cannot control these cuts – we owe it to our fellow Virginians to soften the blow for impacted families. As noted by Speaker Scott, “This is not about politics — it’s about protecting Virginia’s workforce, economy, and essential services.”
The bipartisan committee (seven Democrats and five Republicans) will collect and analyze data on the potential scope of the cuts and develop recommendations for how to keep our budget structurally sound and protect communities from sudden economic disruptions.
Del. Simon said, “Our first meeting will be held soon after we adjourn on February 22. In the meanwhile, I welcome any thoughts and ideas as we tackle this important work.”
