
People take part in the "No Kings Day" protest on Presidents Day in Washington, in support of federal workers and against recent actions by President Donald Trump and Elon Musk, Monday, Feb. 17, 2025, by the Capitol in Washington. (AP Photo/Jose Luis Magana,File)
Virginia policy makers continue to worry about the impact of the Trump administration’s slashing of the federal workforce and spending.
President Donald Trump’s efforts to shrink the federal workforce and cut federal spending have created serious uncertainty about Virginia’s economy and undercut the state’s ability to combat climate change.
A House of Delegates emergency committee examining the impacts of federal workforce cuts recently met in Norfolk for presentations from local leaders in Hampton Roads.
Since Trump began slashing the number of government workers, Virginia policy makers have been on high alert given how deeply intertwined the state’s economy is with the federal government. But the Trump administration has had to re-hire federal workers it laid off, making it hard to know how many have really been laid off. According to tracking by CNN, at least 128,709 federal workers nationwide have been laid off or targeted for layoffs.
Job postings data from Indeed show that federal spending cuts are beginning to impact the labor market, particularly in the Washington, DC area, which includes Virginia. According to an Indeed research report, Trump’s federal workforce cuts have resulted in a massive surge in federal workers starting new job applications and an already cooling job market for research jobs has gotten worse.
“The pullback in these (research and development) roles suggests that cuts to government spending are already impacting some employers and organizations outside the federal government that depend on federal contracts,” according to Indeed.
Unemployment rising
There are some warning signs that have begun to flash for Virginia’s economy.
Virginia’s unemployment rate rose to 3.4% in May – the highest it’s been since August 2021, but still less than the national average of 4.2%, Axios D.C. reported. The rise in May marks the fifth consecutive month Virginia’s unemployment rate has risen – the longest streak since 2008 when the economy crashed.
The Democratic nominee for governor Abigail Spanberger said the rising unemployment rate reflects the impacts of “the Trump administration’s reckless attacks on Virginia’s economy.”
“It’s unacceptable that my opponent, the Lieutenant Governor, is cheering on the White House’s chainsaw approach to cutting the federal workforce,” Spanberger said in a statement.
Spanberger’s Republican opponent, Lieutenant Governor Winsome Earle-Sears, did not immediately respond to an emailed request for comment.
Climate funding cuts
Programs targeting climate change have already been a target of the Trump administration, and Virginia could see even more damage done to its efforts to fight the impacts of a warming climate.
The Trump administration has been “laser-focused” on cutting programs related to combating the impacts of climate change, which has resulted in millions of dollars in canceled federal funding for long-standing climate projects in Virginia, according to Jay Ford, Virginia policy manager for the Chesapeake Bay Foundation.
Virginia’s entire approach to climate resilience is predicated on massive federal investments, so the Trump administration’s pull back on support for combating climate change puts Virginia in a “precarious position,” Ford told Dogwood in an interview.
“Virginia may need to be prepared to take on some of these roles that the federal government was playing,” Ford said. “Because the worst thing we could do is punt for six years. That is a financial disaster for us, and it is a health and human life disaster for us.”
Virginia’s environmental programs rely on federal agencies like the Environmental Protection Agency, Natural Resources Conservation Science, National Oceanic and Atmospheric Administration, and United States Geological Survey. But significant workforce cuts at those agencies have imperiled Virginia’s water monitoring efforts, climate change research, flood preparedness, and technical assistance for farmers, Ford said.
“These are all impacts we feel at this point, and we’ll need to work on ways to backfill,” Ford said.
Support Our Cause
Thank you for taking the time to read our work. Before you go, we hope you'll consider supporting our values-driven journalism, which has always strived to make clear what's really at stake for Virginians and our future.
Since day one, our goal here at Dogwood has always been to empower people across the commonwealth with fact-based news and information. We believe that when people are armed with knowledge about what's happening in their local, state, and federal governments—including who is working on their behalf and who is actively trying to block efforts aimed at improving the daily lives of Virginia families—they will be inspired to become civically engaged.


Virginians protest Trump’s anti-worker policies at Richmond Labor Day rally
Speakers urged workers to organize to fight back against poverty wages and union busting. Hundreds gathered in Richmond’s Monroe Park on Monday to...

Arlington, Alexandria daycare costs rank among nation’s highest
Childcare is inaccessible to many, but Northern Virginia takes the cake on expenses. Republicans and Democrats can agree that childcare in the US is...

Virginia unemployment rate projected to rise in 2025, 2026
Economic pain could be avoided with better federal and state policies. Virginia workers could be in even more trouble this year unless better...

Manassas job fair draws crowd amid tough labor market
Unemployment is on the rise in Virginia. Alex Karapetkov has sent out hundreds of job applications over the last six months with no luck. As a 2024...

Virginia’s economy shows signs of trouble as hiring slows, fewer people quit jobs
A weakening labor market in Virginia and at the national level has policy watchers nervous about a possible economic downturn. Hiring is slowing in...

Tips to help manage your buy now, pay later loans
Between rising prices and dwindling job growth, using “buy now, pay later” on everything from concert tickets to fast food deliveries is becoming...