On April 8, 2025, Senior Director of Insight Region®, Denise Bellows, PhD, attended a meeting of the Virginia House of Delegates for the Emergency Committee, established by the Virginia General Assembly, as a response to stay aware of the recent Federal changes. This meeting specifically focused on the Impacts of Federal Workforce and Funding Reductions.
TL;DR: (Summary)
At the meeting, Denise learned that Northern Virginia drives 47% of Virginia’s tax revenue and 1 in 8 workers holds a federal civilian job. Job postings in the region have dropped sharply, and many career transition cases are tied to USAID cuts. The hospitality sector—already seeing a 14% revenue drop—is bracing for further strain, especially with a decline in Canadian tourism.Key support requests include raising Virginia’s low unemployment stipend (via HB 1766), improving access to regional workforce data, increasing mental health funding, and prioritizing Northern Virginia in business site planning.
Strategic recommendations emphasized building on regional strengths in AI, tech, and quantum computing; investing in resilience and innovation; enhancing amenities to attract talent; and boosting tourism to stimulate revenue.
Interested? Keep Reading! (FULL ARTICLE)
Her reason for attending the meeting was both personal and professional. After eight years in the industry, Denise was hearing of new job losses almost daily—and now, a close friend was losing her business. Ultimately in her role, Denise says,
“It is important to stay on top of this issue and understand how the Federal changes could impact Northern Virginia. I’m also a resident here, so it is especially important to understand what is happening in the region and identify opportunities for the Community Foundation to be supportive.”
She also attended to support Insight Region® research collaborators, Northen Virginia Regional Commission (NVRC) and the Northern Virginia Chamber of Commerce (NVCC), who presented at the meeting.
Here are some key points Denise learned at the meeting:
- Northern Virginia contributes 47% of the tax revenue for the Commonwealth of Virginia (NVRC).
- 175,000 Northern Virginian’s hold a federal civilian job; that is 1 in 8 residents in the workforce (NVRC).
- There are indicators that the private sector is pulling back on hiring; job postings shrunk from 92,000 to 47,000 in the past month (NVRC).
- The majority of NoVA NEXT career transition enrollees are those affected by the USAID cuts (NVCC).
- Nonprofits who provide safety net services and subsidies to our most vulnerable populations will be impacted as high salary earners leave or reduce their support (McKay).
- Hospitality revenue declined 14% from the same time last year; this is concerning within the industry. Hospitality contributes 20% of Virginia’s tax revenue (Mark Carrier, Saul Hospitality and NVC).
- Residents from Canada make up 45% of visitor spending in Virginia; Hospitality is reporting that Canadians are cancelling their planned travel to our region (NVC).
KEY SUPPORT REQUESTS include increasing Virginia’s weekly unemployment stipend—currently among the nation’s lowest despite high living costs—with proposed legislation (HB 1766) aiming to raise it by $100 per week starting January 2025. Advocates also called for more timely, regional unemployment data to better understand workforce shifts and plan community responses. Additional priorities include increased state funding for mental health services in light of federal cuts, and renewed focus on Northern Virginia within the Virginia Business Site Study.
EXPERT RECOMMENDATIONS presented to the General Assembly focused on leveraging regional strengths by:
- enhancing expertise in AI, space, tech, and quantum computing;
- supporting regional amenities to attract top talent;
- and boosting state tourism to drive private sector growth and tax revenue.
Denise is particularly interested in this idea to invest in the Virginia Resilience and Human-Centered Innovation Initiative. Similar to the Research Triangle in North Carolina and University of Maryland's Discovery District -- which developed in College Park during her studies. It would require collaborative effort from local DMV universities, but if it could get off the ground, she thinks it would add great value to this region over a long period of time.
What to Watch For:
- The NOVA Economic Development Alliance is performing a study which should be public soon.
Take Action:
- Invest in a Stronger Tomorrow — Donate to the Community Investment Funds Endowment Today!
Your gift helps power local nonprofits, spark innovation, and create lasting change across Northern Virginia. Join us in building a brighter, more resilient futures for community members — donate now.
Additional Resources:
- Speaker Don Scott Announces Formation of Emergency Committee on the Impacts of Federal Workforce and Funding Reductions - Virginia House Democrats
- 1st EC Meeting - Feb 22, 2025
- 2nd EC meeting - April 8, 2025
- ‘Doom & Gloom:’ George Mason economist breaks down D.C. area economic and housing trends | HBAV - Home Builders Association of Virginia
- Q2 survey of the business community
- Discovery District | University of Maryland Innovation Gateway