Alexandria’s General Assembly delegation painted a stark picture of the region’s economic future as federal layoffs continue to impact Northern Virginia residents and businesses. The legislators shared their concerns during the Alexandria Chamber of Commerce’s General Assembly Breakfast on Thursday, March 20 at the National Industries for the Blind in Alexandria.
Majority Leader Charniele Herring, Senator Adam Ebbin, Delegate Alfonso Lopez, and Delegate Elizabeth Bennett-Parker addressed the immediate economic challenges facing the region and discussed potential state responses to the federal workforce reductions.
“We are talking about people’s lives and livelihoods,” Herring said. “People are suffering from anxiety and stress, not knowing when they go to work whether they’re going to be laid off that day.”
Garrett McGuire, chair of the Alexandria Chamber of Commerce’s Government Relation Committee, led the conversation and shared that unemployment claims in Virginia rose 40% from the previous week and are 81% higher than at this time last year.
Delegate Lopez shared alarming statistics from the Weldon Cooper Center and Council of Governments, projecting a 9.6% unemployment rate just in the 8th Congressional District.
“For every federal job lost, you’re looking at one to two other jobs being lost because of the lack of money going into the community,” Lopez warned.
The legislators anticipate a special session in the fall to address budget impacts, as federal layoffs threaten to undermine Virginia’s current budget priorities.
“We’ve made significant investments into education, we gave pay raises to state employees and the list goes on and on,” Herring says. “We’re going to have to do some adjustments, unfortunately.”
Senator Ebbin directed residents to resources available on his website, adamebbin.com, which includes links to federal resources, unemployment information, and immigrant resources.
“I’m hoping that the governor will see the light and sign my bill to increase unemployment benefits,” Ebbin says, noting Virginia’s unemployment benefits remain low compared to other states.
The delegation also discussed housing affordability, highlighting several initiatives in the current budget.
“We created a first-time homebuyer grant for up to $10,000 per household for people who qualify. We allotted $15 million for that,” Ebbin said. “We also created a pilot in Northern Virginia and Hampton Roads for a rental assistance fund to assist folks who have children in the household.”
Delegate Lopez, who created the Virginia Affordable Housing Trust Fund in 2013, noted it has grown from $6 million to around $150 million in the current budget but argues it needs to reach $400 million.
“For every application in Northern Virginia that we fund, there are seven that we don’t,” Lopez explains. “For every application in Southside Virginia, Southwest Virginia that we fund, there are four that we don’t.”
Childcare remains another priority for the delegation. Delegate Bennett-Parker highlighted several initiatives in the budget, including $25 million for a childcare pilot program to reimburse employers who offer childcare payments to employees under a certain income level.
“The budget made additional investments to provide an additional 4,500 slots,” Bennett-Parker said. “We also are adjusting the co-payment schedule to cap that at 5% of household income.”
The delegation also discussed the timeline for budget negotiations. They return to Richmond on April 2 to vote on the governor’s amendments to the budget, with a special session likely in the fall to address economic impacts from federal layoffs.
“We will be watching our revenues coming in,” Herring said. “I think we’re just going to have to be fluid and it’s a little bit stressful for business owners because the economic forecast can definitely shift.”
On a positive note, Delegate Lopez highlighted legislation he worked on with Senator Ebbin to cover costs for Advanced Placement and International Baccalaureate exams for students who receive free and reduced lunch.
“Instead of having a roadblock to success, these kids now have an open door,” Lopez said. “It was so successful we needed an additional $150,000 to cover the cost this year.”
The Alexandria Chamber of Commerce’s Government Relations Committee presented its legislative priorities document at the breakfast, focusing on economic sustainability, comprehensive business support, housing, and childcare.
“No longer are chambers’ legislative priorities ‘don’t tax us and don’t regulate us,'” McGuire said. “We’re more concerned about quality of life issues, what is affecting the community as a whole.”
The delegation emphasizes its commitment to working in a bipartisan manner despite the challenges posed by federal actions.
“We’re going to continue to do good work. We’re going to still reach across. We’re going to still be bipartisan,” Herring says. “But we’re at that point where it’s what are we going to do? I mean, this can’t go on.”
A significant portion of the General Assembly Breakfast was made available for those in attendance to ask questions of the General Assembly, connecting the local business community to those representing them and making decisions in Richmond on their behalf.
The Alexandria Chamber of Commerce’s Advocacy Series will continue in May with an Alexandria City Council Breakfast and in September with a Legislative Reception. Visit thechamberalx.com for additional details on those events as they are announced.
