President Trump’s first budget proposal and its ramped-up defense spending could help Arlington’s economy, according to experts, but local lawmakers worry that cuts elsewhere in the federal government could hurt.
Trump’s budget blueprint for fiscal 2018, entitled “America First: A Budget Blueprint to Make America Great Again,” calls for $54 billion in additional defense spending.
The budget plan would cut federal funding to a swath of programs to help offset the increased defense spending, including a number that help lower-income residents.
That would likely mean a spending boon at the Pentagon, which has approximately 25,000 military and civilian occupants daily.
In addition, defense contractors based in the county could see more work go their way, as well as the Defense Advanced Research Projects Agency, an Arlington-based Department of Defense agency.
Frank Shafroth, director of the Center for State and Local Government Leadership at George Mason University’s Schar School of Policy and Government, added that DARPA work can be just as lucrative. DARPA “often subcontracts up to $7 for every dollar spent in house,” Shafroth said.
Sen. Mark Warner (D-Va.) said the effects of decreased defense spending under President Obama, the result of the federal budget sequester, must be tackled but not in this way.
“We should be serious about addressing the fiscal issues in our country and work together to address the impact that the across-the-board spending cuts have had on the military and our national security,” Warner said in a statement. “However, the roadmap the President has laid out does not meet those goals.”
Of concern in Arlington is reduced spending on the State Department, which operates three D.C.-area field offices in Arlington. Trump’s plan would cut $10.1 billion from State and the U.S. Agency for International Development. That cut could force the closure or downsizing of those field offices, which handle security and investigations among other roles.
“Budgets show us a President’s priorities, and based on what President Trump released today, I’m concerned that he’s continuing to push policies that would hurt Virginians,” Sen. Tim Kaine (D-Va.) said in a statement last week. “While I support the Administration’s commitment to investments in defense, deep cuts to the State Department jeopardize our national security.”
“President Trump wants to spend more on defense and border security while making huge cuts to what they defend: our people, our health, and our environment,” he said. “These extreme cuts will hit my constituents particularly hard, including many federal workers at the State Department and Environmental Protection Agency. But their pain will be felt across the entire country.”
Any gains on the defense side may be offset by losses elsewhere, as Trump’s budget plan seeks to shrink the federal workforce. With a hiring freeze already in place, further cuts could be coming.
Analysis by the Stephen S. Fuller Institute at GMU found that Northern Virginia could lose as many as 3,600 federal jobs, under the assumption that between 5.4 and 6.6 percent of all federal jobs in the region are lost.
And the analysis found that any gains in DoD and other departments may not be enough to lessen the impact of losses elsewhere.
Despite others’ gloomy predictions, Shafroth said he is optimistic that Arlington can weather any storms, given how central it is in defense spending.
“On net, especially given the serious situation with North Korea, I believe there will be major job disruption, but, at the end of the day the county’s critical role in national defense and the very large increase in federal spending will lead to disruption, but close to a net overall wash,” he said.
Flickr pool photo (top) by Michael Coffman