With the federal government slashing its workforce and attempting to freeze billions in funding, Virginia lawmakers are bracing for impact.
House Speaker Don Scott, D-Portsmouth, on Tuesday evening announced the formation of an Emergency Committee on the Impacts of Federal Workforce and Funding Reductions, a bipartisan panel tasked with assessing the economic fallout and crafting solutions to protect the commonwealth. Speaker Don Scott, D-Portsmouth, on Tuesday announced the creation of a bipartisan emergency committee to shield Virginia jobs and the economy from sweeping federal cuts.
The move comes as President Donald Trump, in his second term, accelerates a sweeping federal workforce reduction campaign, cutting thousands of jobs through a deferred resignation program and terminating major federal office leases.
At the same time, the U. Office of Management and Budget has put a hold on disbursing federal funds, leaving states scrambling to plug potential budget gaps. However, a federal judge last week temporarily blocked the Trump administration from enforcing the policy, a move that created more uncertainty to an already precarious situation. The White House has further directed federal agencies to immediately halt the distribution of funds allocated under key federal climate and energy laws enacted during the Biden administration, such as the Inflation Reduction Act and the Bipartisan Infrastructure Law.
This decision is likely to put tens of billions of dollars in legally designated federal funding on hold and is expected to face legal challenges. The committee will be bipartisan, with Del. Robert Bloxom, R-Accomack, serving as vice chair. Other members include Dels. Northern Virginia and Hampton Roads β where federal employment and defense contracts drive local economies β could be among the hardest-hit regions.
