Gaithersburg official warns federal job cuts could outpace local capacity to absorb displaced workers

Sharon Disk, Gaithersburg’s economic development manager, told the mayor and city council at a June 30 work session that federal workforce reductions and related budget cuts could sharply reduce local federal employment and contract spending and that regional job growth likely cannot absorb the displaced workers.

Disk said the risk stems not just from layoffs but from unfilled vacancies and reduced federal contracting, which together shrink payroll and local demand. "It's what happens to our local economy when Federal spending shrinks here," she said, adding later, "We are facing a tsunami when it comes to our economy. We don't know how big it is."

The presentation focused on regional data and federal guidance. Disk said Gaithersburg had 3,748 federal workers in 2023, about 13.6% of local employment, while Montgomery County had 68,848 federal workers (about 16.8%). She described Office of Management and Budget and Office of Personnel Management guidance that outlined an initial phase of cuts beginning March 17, agency reorganization plans due April 14, and a larger implementation phase starting Oct. 1. Disk told the council that reported nationwide federal departure counts varied by source, noting examples such as roughly 61,000 and…