As the country creeps closer to a possible government shutdown, federal workers are bracing for the impact of suspended pay, while the rest of us would need to manage with reduced federal services.

The effects of a shutdown are nationwide, but they’re particularly painful in D.C., which is already dealing with a sharply slowing economy.

Between the DOGE layoffs and cuts to federal grants and research, unemployment in the D.C. area is up 0.6% year over year as of June.

“While in very large metro areas as a whole in the country, it's basically flat,” said Tracy Hadden Loh, a fellow at the Brookings Institution who has been tracking the impact of Trump administration policies in the region.

The housing market has taken a hit as well, she said — home listings are up more than 63% in the D.C., Maryland, Virginia area.  

“They're up nationwide, but the increase in the DMV is about double the nationwide rate,” said Hadden Loh.

Tourism is also suffering, according to Yesmin Sayin, executive director of the D.C. Policy Center.

“There's no interest among the European tourists to come to the District,” she said. “Canadian tourists, who have been important, they're not coming for political reasons.”

Now, already stressed federal workers are worried about a shutdown, as well.

Furloughed federal workers are supposed to get back pay, but “that doesn't help the folks who are working at the restaurants or places that may be retail outlets,” said Terry Clower, a professor of public policy at George Mason University.

The same goes for some federal contractors who lose out on work and just have to take the hit.