What federal workers earn
Reducing Fairfax County’s and Virginia’s federal workforce would further depress the declining commercial real estate market in Northern Virginia.
Fairfax County’s decline in the commercial real estate market significantly impacts its revenue along with "rising employee compensation costs," reports Fairfax County Government News.
The county's 2026 Budget Forecast, published on Nov. 27, 2024, states, "Nonresidential property values are expected to fall by 1.3 percent, marking two consecutive years of declines driven by high office vacancies and rising operational costs.”
"Rising costs and limited revenue growth drive [a] projected $292.7 million shortfall,” for Fairfax County.
According to the Fairfax County Economic Development Authority, businesses in Fairfax County receive $38 billion in federal contracts, accounting for 5 percent of all federal procurement contracts. "Any reduction in federal presence in our county will cause a major impact on the commercial real estate market," Jeff McKay (D), chairman of the Fairfax County Board of Supervisors, said in his Nov. 2024 board matter, “Review of County Regulations Regarding Incoming Presidential Administration,” referencing the commercial real estate market that was already expected to fall by 1.3 percent.
McKay added that they had to “prepare to address the potential impacts of the new administration” locally. McKay presented the board matter with James Walkinshaw (D-Braddock). “The President-Elect has re-committed to his goal of "dismantl[ing] government bureaucracy,” and among the many policy changes that he plans to make in service of this goal are several that could have a significant impact on our community. Those include “a proposed drastic reduction in the federal workforce and the replacement of non-partisan civil servants with those deemed ‘loyal,’” McKay read.
The board matter directed staff to evaluate the potential impacts of the new president on local policies.