Alexandria residents have continued to seek out local tax assistance as the city’s economy reels from federal layoffs, rising living costs and increased unemployment.
Alexandria has currently provided a total of 95 car tax payment plans averaging some $1,053 each, in addition to 12 real estate payment plans that average $4,189 per year.
“That, traditionally, is not something we do,” City Manager Jim Parajon said during an economic update at last night’s City Council meeting. “And all of a sudden, we’re now up to 12 of those, and that’s been within, I think, the last month or so. So, it really is representing some pressure and stress on our residents.”
The city’s unemployment is still rising, hovering close below the national rate of 4.4%. The headwinds are leading more people to rely on local assistance, an indicator that more residents may be living paycheck-to-paycheck, Parajon said.
More uncertainty is still to come, given recent changes to eligibility requirements for the Supplemental Nutrition Assistance Program (SNAP) that shift administrative costs to the commonwealth and localities. In October, 11,589 Alexandria residents were enrolled in the assistance program.
Changes are expected to affect eligibility for victims of severe forms of trafficking, refugees, and people granted asylum, as well as certain Afghan and Ukrainian nationals, according to the presentation. Additionally, rules that went into effect Nov. 1 eliminated work exemptions for veterans, people experiencing homelessness and former foster youth, among other changes.
“That can be challenging in an environment where people are already working numerous jobs and they still need child care, they need some of those other things,” Parajon said.
Overall, Northern Virginia has lost nearly 26,000 jobs from August 2024 to August 2025, including about 10,300 jobs in the professional and business sector and 6,600 federal jobs.
“Jobs are flat,” Parajon said. “So, what this really is highlighting is the economy is sluggish. Costs are rising, and there’s less job opportunities in many sectors.”
In terms of residential developments, rising construction costs related to tariffs and labor have caused a backlog of approved projects that have yet to break ground. The conditions are also delaying projects like renovations to existing homes.
Parajon said this is not “just a single six-month or eight-month issue,” but something that could extend over the next few years, if not more, “until the system really changes.”
Looking ahead, Parajon said Alexandria continues to face uncertainty from decisions made at the federal level.
“[It is] negatively impacting anything from grant opportunities to uncertainty about how we can rely on funding,” he said.
The City Manager is expected to provide another economic update next month, while the city’s departments have been asked to cut budgets by 1%.
