New report demonstrates how much the Trump agenda has harmed the D.C. regional economy: Other localities should brace for similar consequences

A new Economic Policy Institute report reveals the extent of the Trump administration's damage to the D.C. regional economy in 2025-and warns other localities across the country could face similar economic harms.

In 2025, the Trump administration relentlessly attacked federal government workers and cut federal programs and agencies. Federal employment in the DMV region (Washington, D.C.; parts of Maryland and Virginia) fell by more than 53,800 jobs (-14.2%) between the end of 2024 and 2025. These job losses were only the tip of the iceberg, as scores of area employers whose revenues are connected to the federal government also shed jobs.

The DMV's employment rate fell by 3.2 percentage points between December 2024 to December 2025, compared with a decline of just 0.4 percentage points for the country over the same period. DMV employment fell at least 2 percentage points for every demographic category of workers, with Black workers suffering the largest employment declines (5.9 percentage points).

Other localities-including many in Southern, Western, and Midwestern states-are at risk of similar economic harms. Trump's attacks on the federal workforce will harm communities that rely on their employment. The social safety net, which Trump has gutted to pay for tax cuts for the rich, is the dominant driver of economic activity for many communities across the country. And Trump's anti-immigrant crackdown and deportation agenda is hurting localities with large immigrant populations.

"Trump's destructive agenda has disproportionately damaged the Washington, D.C. regional economy. But other localities across the country-particularly those with large federal workforces, those that are heavily dependent on federal programs, and those with sizeable immigrant populations-are far from immune. Many could suffer as much, if not more, from the Trump administration's actions," said Nina Mast, EPI economic analyst and co-author of the report.