(The Center Square) – Virginia could lose billions of dollars if the federal government shutdown continues, according to a White House Council of Economic Advisers fact sheet that lays out state-by-state impacts.
Virginia’s economy could shrink by about $396 million every week the shutdown goes on, or roughly $1.7 billion a month, with as many as 1,200 Virginians losing jobs under a one-month shutdown, according to the fact sheet.
In a government shutdown, the fact sheet notes most federal workers are either furloughed or working without pay. In Virginia, that includes about 189,000 federal employees, making up roughly 5% of the commonwealth’s workforce.
At the same time, approximately 107,000 Virginia families rely on Women, Infants and Children benefits, which could be at risk of running out if the impasse drags on. Another 825,000 Virginians are enrolled in SNAP, including about 320,000 children, who could face uncertainty if payments are delayed.
Seniors in Virginia could see impacts too. Roughly 8,600 Virginians who still receive Social Security checks by mail may see delays in getting them.
The Small Business Administration has stopped processing loans during the shutdown. That puts about $53 million in Virginia loans at risk of delay in just one month.
Federal contractors face a major hit as well. Spending on contracts in Virginia could fall by $3 billion if the standoff continues. With so many workers unpaid, the CEA says consumer spending could also drop by another $3.6 billion each month.
As previously reported by The Center Square, both parties’ funding proposals have stalled in the Senate. Democrats rejected a Republican continuing resolution they said would cut health care subsidies, while Republicans opposed a Democratic plan that added $1.4 trillion in new spending.
House Republican Conference Chair Lisa McClain, R-Mich., said at a press conference that Democrats were responsible for prolonging the shutdown by rejecting what she called a “clean” continuing resolution.
She argued the measure matched spending levels previously supported under President Biden and claimed Democrats instead were pushing for more than a trillion dollars in new spending. McClain said that money would go to “climate pet projects overseas” and “benefits for illegals,” while cutting rural health care.
McClain said Virginia’s senators, Democrats Mark Warner and Tim Kaine, were “digging their heels in” instead of voting to reopen the government. “Virginia Republicans voted to keep the government open. Virginia Democrats voted again and again to keep it closed,” she said.
Sen. Mark Warner, D-Va., said in a video that the Trump administration used the shutdown to “hide the ball” on a weakening economy by withholding jobs data.
He compared it to Virginia, stating notices of rising health care costs were being delayed until after Election Day. Warner added that tariffs were turning the Trump economy “into more of a disaster” and warned of a looming health care crisis.
Gov. Glenn Youngkin said the shutdown jeopardizes ‘safety in our skies and security at home’ and urged Sens. Tim Kaine and Mark Warner to put Virginians first.
