Virginia moves to protect the economy from the federal workforce crisis – Legacy newspaper

President Don Scott, D-Portsmouth, announced on Tuesday the establishment of a bilateral emergency committee to protect the Virginia Jobs and the economy from the federal abbreviations. (Photo by Marcus Schmidt/Virginia Mercury)

By Marcus Schmidt

(VM) – As the Federal Government has reduced its workforce and is trying to freeze billions of funding, Virginia’s legislators are encouraged for impact. Home Chairman Don Scott, D-Portsmouth, on Tuesday evening announced the formation of an emergency committee on the influence of federal labor and the reduction of funding, a bilateral group charged with the evaluation of economic disintegrations and the development of community protection solutions.
“This is not about policy – it’s about protecting the workforce, economy and basic services of Virginia,” Scott says in a statement. “With nearly 145,000 federal civil servants and even more federal contractors who call the Virginia House, we depend on a strong partnership with the federal government to provide critical services. It has announced that the Federal Administration plans to “drain” the federal workforce and the pause in the federal funding have caused serious concerns about the Virginia economy and the ability to maintain basic services. “

This move comes when President Donald Trump in his second term accelerates the vast federal campaign to reduce the workforce by reducing thousands of jobs through a postponed resignation program and termination of the big federal office rents.

At the same time, the US Management and Budget Office is detained for the payment of federal funds, leaving countries looking to include potential budget gaps. However, a federal judge temporarily blocked the Trump administration from the implementation of the policy, a move that created more uncertainty to an already uncertain situation.

The White House further directed federal agencies to immediately suspend the allocation of funds allocated under the key federal climate and energy laws adopted during the Biden administration, such as the Law on Decreasing Inflation and Laws on Two Party Infrastructure. This decision is likely to put tens of billions of dollars in legally defined federal detention funding and is expected to face legal challenges.

In Virginia, bets are particularly high – the community community is ranked as the best country in the nation for federal treaties awards, amounting to $ 106 billion in 2023.

Del. David Bulova, D-Fairfax, which will chair the committee, the emergency stressed.

“This is a matter of guaranteeing that Virginia remains prepared and sustainable against the backdrop of changes in federal policy,” he said. “Our state budget must remain structurally healthy and we must take steps to protect our communities from sudden economic interruptions.”

The Committee will be bilateral, with del Robert Bloxom, R-Accomck, which serves as Vice-President. Other members include Dels. Bonita Anthony, D-Norfolk, Ellen Campbell, R-Rockbridge, Joshua Cole, D-Fredericksburg, Michael Feggans, D-Virgin Emo, Hillary Pugh Kent, R-WARSAW . R- Virginia Beach, Josh Thomas, D-Prince William, Tony Wilt, R-Harrisonburg and Vivian Watts, D-Fairfax.

North Virginia and Hampton Rhodes, where federal employment and defense treaties lead to local economies-may be among the most affected regions. The Committee will collect data, will consult with stakeholders and will provide recommendations for a policy to mitigate jobs and budget shortages.

Economic experts have warned that federal cuts can send shock waves through Virginia’s economy, especially in industries relying on government treaties. Defense contractors, IT companies and research institutions with strong federal relationships are expected to feel the effects most.

The uncertainty about the payment of federal funding has also sparked concerns among local authorities who rely on federal grants for infrastructure, public safety and education initiatives.

Civil servants are particularly concerned about the effect of reducing small business and services industry. Many local economies in Virginia are supported by a combination of federal employees, government contractors and related industries.

A sharp reduction in federal costs can lead to job loss, reduced consumer costs and potential downturns of government revenue.

Bulova emphasized the need for comprehensive solutions.

“We can’t afford to be caught up,” he said. “This committee will guarantee that we are developing deliberate strategies to protect our economy, will help with displaced workers and maintain funding for basic services. It’s about Virginia’s future stability. ”

Scott sounded these concerns, stating that Virginia’s leadership should be active when dealing with the potential fall. “We have an obligation to protect Virginia’s families and business from policies that could have pernicious consequences. This committee is an important first step in this process. “

The group is expected to hold their first meeting until May 1 and will issue a final report by December 15. Legislators hope the findings will help lead to the session of the General Assembly in 2026 in the preparation of Virginia for a potential economic storm forward.