About this Letter:
Jack McDougle, President & CEO of the Greater Washington Board of Trade, has sent a letter to Senator John Thune and Speaker Mike Johnson expressing deep concerns over House Concurrent Resolution 14 (H.Con.Res.14) and its potentially devastating impact on the region’s economy. This letter was also sent to additional congressional leaders who represent our region.
Submitted Letter:
March 11, 2025
The Honorable John Thune
President of the United States Senate
United States Senate
Washington, DC 20510
The Honorable Mike Johnson
Speaker of the House
United States House of Representatives
Washington, DC 20515
Dear Senator Thune and Speaker Johnson,
I’m writing on behalf of the Greater Washington Board of Trade, which has represented the business community of the Washington metropolitan region since 1889, to express our deep concern about the harmful impacts of House Concurrent Resolution 14 (H.Con.Res.14). This bill would inflict serious economic harm not only on government workers and contractors but on the broader business community, working families, and the overall economic stability of our region. We urge you to work toward a more balanced and sustainable solution.
The consequences of this bill would extend well beyond the public sector, creating a ripple effect throughout the broader economy. Abrupt federal spending cuts at this scale would weaken consumer demand, lower business revenues, and drive-up unemployment. Businesses large and small—especially those in retail, hospitality, real estate, and professional services—would face declining sales and rising costs as reduced spending and economic uncertainty take hold.
Infrastructure and public services, including transportation, public safety, healthcare, and education, would also suffer, further straining business operations and reducing overall economic productivity. The combined effect of declining business confidence, lower investment, and financial strain would threaten long-term growth and regional competitiveness well beyond any short-term economic downturn.
While we recognize and support the importance of fiscal responsibility, especially bringing down the national debt and lowering debt service payments, the scale and speed of the proposed cuts would cause more harm than good. Deficit reduction cannot come at the expense of jobs, economic stability, and essential services. A destabilized economy in the capital region would have far-reaching national and global consequences.
Instead of indiscriminate, across-the-board cuts that threaten economic stability, we urge you to consider more targeted and thoughtful strategies to reduce costs. A few examples:
- Modernizing government operations through increased automation and streamlined processes to reduce costs while improving efficiency. Creating better experiences for the American people.
- Reducing waste and inefficiency in federal contracting by improving oversight, implementing targeted cuts, and eliminating redundant programs would result in significant savings without undermining economic growth or essential services.
- Reforming healthcare spending by focusing on preventive care and reducing administrative overhead would generate long-term savings without compromising coverage or quality of care.
- Closing tax loopholes and improving enforcement to ensure fair tax compliance would raise revenue, create a level playing field, and reduce the deficit without undercutting business growth or middle-class stability.
The proposed budget cuts, on the other hand, would have specific and measurable negative effects, including:
- Increased Risk of a Long-Term Recession Across Our Region – The Chief Financial Officer (CFO) of the District of Columbia has issued a revised economic forecast showing a reduction in local revenues of more than $1 billion over the financial plan period, with an average annual decrease of approximately $342.1 million from FY 2026 through FY 2028.
- Widespread Private Sector Job Losses and Economic Instability – The House budget bill could result in the loss of 50,000 to 75,000 private-sector, non-government contractor jobs in the Greater Washington region over the next two years. The hardest-hit sectors would likely include retail, hospitality, real estate, professional services, and healthcare due to lower spending and overall economic activity.
- Strain on Small Businesses and Reduced Investment – Small and mid-sized businesses in the Greater Washington area generate over $120 billion in annual economic activity. The House bill would weaken business revenues and limit access to capital, leading to business closures and reduced investment in growth.
- Education Crisis and Lower Student Outcomes – The proposed budget would significantly cut federal education funding, including Title I grants that support low-income schools. Reduced funding for teachers, instructional materials, and support services would increase class sizes, limit access to special education and mental health resources, and reduce after-school programs. Research shows that such conditions lead to higher dropout rates and declining academic performance, which in turn reduces workforce readiness and limits future economic mobility.
- Increased Crime and Public Safety Challenges – Cuts to federal funding would undermine public safety efforts. Reduced support for mental health services, substance abuse programs, and job training initiatives would remove critical resources that help prevent crime and reduce recidivism. A weakened local law enforcement infrastructure would diminish the ability to respond to public safety threats and maintain order.
- Strains on Public Infrastructure and Services – Substantial cuts to federal funding for transportation and healthcare would have immediate consequences for the region’s quality of life. The Washington Metro system, which serves more than 800,000 riders daily, would face service disruptions, increased fares, and reduced reliability—deterring both workers and businesses from staying in the region. Healthcare access, particularly for underserved communities, would also suffer as federal support for Medicaid and local health programs is scaled back, which would affect all patients.
- Housing Market and Financial Instability – A rise in unemployment and reduced confidence would hit the housing market hard. Home prices in the region, which have risen steadily over the past decade, would decline by 5% to 8% within the next year as demand weakens. Increased foreclosures and higher rental costs would add to financial strains for working families and undermine regional bank stability.
- Growing Federal Deficits Despite Cuts – Ironically, the proposed cuts are unlikely to meaningfully reduce the deficit. The CBO has projected that reduced economic activity resulting from these cuts could lower tax revenues by $150 billion over the next decade, undermining deficit reduction efforts. Increased demand for unemployment assistance and other social programs would likely offset much of the intended savings.
- Loss of Global Competitiveness – The Greater Washington region is a critical economic engine for the nation. Disruption here would have a detrimental effect on global confidence in the U.S. economy. Reduced business confidence and weakened infrastructure would make it harder to attract and retain talent, driving business activity to competitor markets abroad.
The economic strength of the Greater Washington region is not just a local concern—it’s a matter of national importance. The businesses, workers, and families that power this region’s economy need thoughtful and balanced solutions, not short-sighted austerity. We strongly urge you to work toward a bipartisan solution that preserves economic stability, protects jobs, and supports businesses of all sizes. The Greater Washington Board of Trade stands ready to work with you and your colleagues to craft a more responsible and sustainable path forward.
We cannot cut our way to prosperity. We must manage our resources responsibly and make smart investments in our shared future. Thank you for your attention to this critical issue.
Sincerely,
Jack McDougle
President and CEO
Greater Washington Board of Trade
