Washington's Struggling Economy Takes Another Economic Hit from the Government Shutdown

 A person walks toward the entrance of the Capital Area Food Bank, Thursday, Nov. 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)
A person walks toward the entrance of the Capital Area Food Bank, Thursday, Nov. 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)
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Washington's Struggling Economy Takes Another Economic Hit from the Government Shutdown

 A person walks toward the entrance of the Capital Area Food Bank, Thursday, Nov. 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)
A person walks toward the entrance of the Capital Area Food Bank, Thursday, Nov. 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)

With the combination of the longest government shutdown, the mass firings of government workers and a fresh cut in federal food aid, the Capital Area Food Bank in Washington is bracing for the swell of people who will need its help before the holiday season.

The food bank, which serves 400 pantries and aid organizations in the District of Columbia, northern Virginia and two Maryland counties, is providing 8 million more meals than it had prepared to this budget year — a nearly 20% increase, The AP news reported.

The city is being hit “especially hard," said Radha Muthiah, the group's CEO and president, "because of the sequence of events that has occurred over the course of this year."

The nation's capital has been battered by a series of decisions by the Trump administration, from the layoffs of federal workers to the ongoing law enforcement intervention into the district. The added blow of the shutdown, which has furloughed workers and paused money for food assistance, is only deepening the economic toll.

The latest figures from the D.C. Office of Revenue Analysis do not account for workforce changes since the shutdown that began Oct. 1. But even the September jobs report shows that the seasonally adjusted unemployment rate hovers at 6%, compared with the most recent national rate of 4.3%, and has been the highest in the nation for months.

The economic woes appear to be reverberating politically. Democrat Abigail Spanberger won election Tuesday as Virginia's governor after focusing her campaign message on the effects of President Donald Trump's actions on the state’s economy.

The shutdown's long-term impact on the regional economy will be felt long after the government reopens, experts say.

Local businesses feeling the crunch Washington has the country's largest share of federal workers — about 20%, according to official figures — and roughly 150,000 federal employees call the area home. By Monday, hundreds of thousands of federal workers across the country will have missed at least two full paychecks because of the shutdown. Nationally, at least 670,000 federal employees are furloughed, while about 730,000 are working without pay, according to the Bipartisan Policy Center.

During the shutdown, the number of federal employees on Washington’s transit system each weekday has dropped by about one-quarter compared with ridership in September. Eateries that the Restaurant Association of Greater Washington says were already dealing with thin margins from seasonal declines and the fallout from Trump’s deployment of armed National Guard members on city streets are facing more challenges at a time when owners had hoped for a rebound.

Tracy Hadden Loh, a fellow at Brookings Metro, a think tank, said that going without paychecks is causing significant cash flow issues for federal workers, potentially leading to defaults on mortgages and student loans. For local businesses, especially those reliant on federal workers’ discretionary spending, it could exacerbate the impact during the high-sales October-December quarter.

“A lot of businesses rely on higher spending in Q4 in order to have a revenue positive year,” Loh said.

Small businesses are feeling the loss of that spending.

The crowd watching Liverpool's Premier League game last weekend would have been standing room only at The Queen Vic, a bar in Northeast Washington. But that was not the case, said Ryan Gordon, co-owner of the British pub.

“We still had seats for people, which means the bars around us who get our overflow got nothing,” Gordon said.

Business is down about 50% compared with what it was before the shutdown, he said. He considers himself lucky in the local restaurant scene because he owns the building and does not have to pay rent.

“To the extent to which discretionary spending by D.C. area households is limited, that could push a lot of local businesses into the red,” Loh said. The culmination of the shutdown, cut in SNAP benefits and layoffs are weighing heavy on households that have never sought help before, she added.

A family gets squeezed out of the region Thea Price was fired from her job at the U.S. Institute of Peace in March of this year, part of the wave of layoffs meant to shrink the size of the federal government. Her husband, a government contractor, also lost his job at a museum. Since then, they have lived on savings, Medicaid and SNAP.

Price, 37, recently went to a food pantry in Arlington, Virginia, for the first time recently. The shutdown halted funding for SNAP, after it took her months to get it, and the $500 payments she receives each month were set to stop. Virginia sent a partial payment but it was not enough, Price said. With her options to sustain herself and her family running out, Price is moving back to her hometown in the Seattle area.

“We can’t afford to stay in the area any longer and hope that something might pan out,” she said. “We’re just in a much different place than when these things started in March.”

At the Capital Area Food Bank in Northeast Washington, forklifts sped around in a controlled chaos, unloading trucks, moving food and preparing for a distribution set up for federal employees and contractors, and preparations are intensifying with the holiday season in mind. The organization is expecting to provide 1 million more meals this month than it had anticipated before the shutdown.

“We’re very focused obviously on the immediacy of all of these impacts today and getting food to those who need it," said Muthiah, the group's director. But she cautioned there were long-term implications to the unfolding crisis, with people tapping their savings and retirement funds to get by.

“People are borrowing against their futures to be able to pay for basic necessities today,” she said.



Dar Global and Trump Organization Launch $1 Billion Project in Jeddah

The project, called Trump Plaza Jeddah, will include executive and premium residences, home offices, retail outlets and curated dining offerings. (Asharq Al-Awsat) 
The project, called Trump Plaza Jeddah, will include executive and premium residences, home offices, retail outlets and curated dining offerings. (Asharq Al-Awsat) 
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Dar Global and Trump Organization Launch $1 Billion Project in Jeddah

The project, called Trump Plaza Jeddah, will include executive and premium residences, home offices, retail outlets and curated dining offerings. (Asharq Al-Awsat) 
The project, called Trump Plaza Jeddah, will include executive and premium residences, home offices, retail outlets and curated dining offerings. (Asharq Al-Awsat) 

Dar Global and the Trump Organization announced on Monday the official launch of Trump Plaza Jeddah, valued at over $1 billion.

Dar Global, a London-listed luxury real estate developer, said the project marks its third collaboration with the Trump Organization in the Kingdom.

This landmark project, strategically located within the expansive Amaya development along King Abdulaziz Road, is poised to redefine luxury urban living in Jeddah's thriving real estate landscape, following the launch of Trump Tower Jeddah in December 2024.

Dar Global described the project as one of the most integrated urban destinations in Jeddah, saying it includes home offices, retail spaces, dining venues and a private club.

Residential offerings include fully furnished 1, 2, and 3-bedroom Trump Executive Residences; premium 2, 3, and 4-bedroom Trump Park Residences; and exclusive 4-bedroom Trump Townhouses.

Together with thoughtfully designed home offices, premium retail, and curated dining, the project redefines modern living by blending convenience and luxury into a single, connected destination.

Optional rental management services further enhance the appeal for international owners seeking a turnkey ownership experience.

“Expanding our presence in Saudi Arabia with Trump Plaza Jeddah underscores our commitment to world-class quality and iconic design,” said Eric Trump, executive vice president of the Trump Organization. “This project reflects the strength of our relationship with Dar Global and our confidence in Jeddah as a dynamic, globally relevant city.”

Trump affirmed that Trump Plaza Jeddah will set a new benchmark for integrated urban destinations.

For his part, Ziad El Chaar, CEO of Dar Global, said the launch of Trump Plaza Jeddah represents a major milestone in the company’s Saudi portfolio.

“This is not a single-use development, but a carefully curated urban ecosystem designed for global residents who want to live, work, and connect within the best address in Jeddah,” he said.

“Anchored by a private park and supported by world-class amenities, Trump Plaza Jeddah introduces a new model for modern city living in the Kingdom,” El Chaar noted.

The project also features an exclusive 4,000-square-meter Vitality Club, with golf simulators, a spa, sports medicine and recovery facilities, swimming pools, dining, and high-performance wellness spaces.

Destination retail and dining, including Trump Grill, Trump Daily, an artisan bakery, and a fitness pro shop, reinforce its positioning as a district day and night.

 

 


Oil Extends Climb on Iran Supply Disruption Concerns

FILE PHOTO: A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Oil Extends Climb on Iran Supply Disruption Concerns

FILE PHOTO: A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

Oil prices extended gains on Tuesday as heightened concerns surrounding Iran and potential supply disruptions outweighed the prospect of increased crude supply from Venezuela.

Brent futures rose 22 cents, or 0.3%, to $64.09 a barrel by 0430 GMT, hovering near a two-month high struck in the previous session. US West Texas Intermediate crude climbed 23 cents, or 0.4%, to $59.73.

"The price increase comes amid intensifying protests in Iran, raising the possibility of some form of intervention ‌by the US," ING ‌commodities strategists said on Tuesday.

Iran, one of ‌the ⁠biggest producers ‌of the Organization of the Petroleum Exporting Countries, is facing its biggest anti-government demonstrations in years, drawing a warning from US President Donald Trump of possible military action over lethal violence against protesters.

Trump is expected to meet senior advisers on Tuesday to discuss options on Iran, a US official told Reuters.

The US president said on Monday that any country that does business with Iran will be subjected ⁠to a tariff rate of 25% on any business conducted with the United States. Iran exports ‌much of its oil to China.

"With the US ‍and China having reached a trade ‍truce, we question whether the US would want to rock the boat ‍again with additional tariffs on China," the ING strategists said.

The political developments matter for oil markets as Iran is a major sanctioned producer and any escalation could disrupt supply or add a geopolitical risk premium.

"Unrest in Iran has added about $3-4/barrel in geopolitical risk premium in oil prices, in our view," Barclays said in a note.

Markets are also grappling with concerns of additional crude supply ⁠hitting the market due to Venezuela's anticipated return to exports. Following the ouster of President Nicolas Maduro, Trump said last week the government in Caracas is set to hand over as much as 50 million barrels of oil subject to Western sanctions to the US.

Global oil trading houses have emerged as early winners in the race to control Venezuelan crude flows, getting ahead of US energy majors.

Elsewhere, geopolitical tensions escalated as Russian forces launched attacks on Ukraine's two largest cities early on Tuesday, Ukrainian officials said.

In the United States, the Trump administration renewed its attacks on the Federal Reserve, underscoring concerns in markets about the central ‌bank's independence and adding to uncertainty about future economic conditions and oil demand.


Morocco Targets $10 Billion AI Contribution to GDP by 2030

 People wave Morocco's flag in the old town of Rabat, on January 9, 2026 prior the Africa Cup of Nations (CAN) quarter-final football match Morocco v Cameroon. (AFP)
People wave Morocco's flag in the old town of Rabat, on January 9, 2026 prior the Africa Cup of Nations (CAN) quarter-final football match Morocco v Cameroon. (AFP)
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Morocco Targets $10 Billion AI Contribution to GDP by 2030

 People wave Morocco's flag in the old town of Rabat, on January 9, 2026 prior the Africa Cup of Nations (CAN) quarter-final football match Morocco v Cameroon. (AFP)
People wave Morocco's flag in the old town of Rabat, on January 9, 2026 prior the Africa Cup of Nations (CAN) quarter-final football match Morocco v Cameroon. (AFP)

Morocco is targeting a 100 billion dirhams ($10 billion) boost to its gross domestic product from artificial intelligence by 2030, the minister in charge of digital transition said on Monday, as the country steps up its investment in training programs, sovereign data centers and cloud services.

Morocco, whose current GDP comes to around $170 billion, plans to invest in artificial intelligence centers linked ‌to universities and ‌the private sector, and ‌to ⁠integrate AI solutions ‌into public administration and industry, Minister Amal El Fallah Seghrouchni told a conference in Rabat.

The GDP boost would largely come from expanding domestic data-processing capacity through sovereign data centers, scaling up cloud and fiber-optic infrastructure, and building an AI-skilled workforce ⁠to support the deployment of AI solutions across industry ‌and government, she said.

Under the ‍plan, Morocco expects ‍to create 50,000 AI-related jobs and train ‍200,000 graduates in AI skills by 2030.

As part of that effort, Seghrouchni on Monday signed a partnership agreement with France's Mistral AI to support the development of generative AI tools in Morocco.

"We want to turn Morocco into ⁠a future excellence hub in AI and data science," Seghrouchni said.

The government is also preparing legislation governing artificial intelligence, according to the minister.

Morocco has earmarked 11 billion dirhams ($1.2 billion) for its digital transformation strategy for 2024–2026, covering AI initiatives and the expansion of fiber-optic infrastructure. It is separately planning a 500-megawatt, renewable energy-powered data center in the southern city of Dakhla ‌to boost the security and sovereignty of national data storage.