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.



Saudi Arabia, Syria Sign Joint Airline and Telecoms Deals

Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)
Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)
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Saudi Arabia, Syria Sign Joint Airline and Telecoms Deals

Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)
Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)

Syria and Saudi Arabia signed deals Saturday that include a joint airline and a $1-billion project to develop telecommunications, officials said, as Syria seeks to rebuild after years of war.

The new authorities in Damascus have worked to attract investment and have signed major agreements with several companies and governments.

Syrian Investment Authority chief Talal al-Hilali announced a series of deals including "a low-cost Syrian-Saudi airline aimed at strengthening regional and international air links".

The agreement also includes the development of a new international airport in the northern city of Aleppo, and redeveloping the existing facility.

Hilali also announced an agreement for a project called SilkLink to develop Syria's "telecommunications infrastructure and digital connectivity".

Syrian Telecommunications Minister Abdulsalam Haykal told the signing ceremony that the project would be implemented "with an investment of around $1 billion".

For decades, Syria was unable to secure significant investments because of Assad-era sanctions.

But the United States fully removed its remaining sanctions on Damascus late last year, paving the way for the full return of investments.

Syria and Saudi Arabia also inked an agreement on water desalination and development cooperation on Saturday.

At the ceremony, Saudi Investment Minister Khalid Al-Falih announced the launch of an investment fund for "major projects in Syria with the participation of the (Saudi) private sector".

The deals are part of "building a strategic partnership" between the two countries, he said.

Syria's Hilali said the agreements targeted "vital sectors that impact people's lives and form essential pillars for rebuilding the Syrian economy".

Syria has begun the mammoth task of trying to rebuild its shattered infrastructure and economy.

In July last year, Riyadh signed investment and partnership deals with Damascus valued at $6.4 billion to help rebuild the country's infrastructure, telecommunications and other major sectors.

A month later, Syria signed agreements worth more than $14 billion, including investments in Damascus airport and other transport and real estate projects.

This week, Syria signed a preliminary deal with US energy giant Chevron and Qatari firm Power International to explore for oil and gas offshore.


India’s Modi Lauds Interim Trade Pact After US Tariff Rollback

Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
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India’s Modi Lauds Interim Trade Pact After US Tariff Rollback

Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)

Indian Prime Minister Narendra Modi on Saturday hailed an interim trade agreement with the United States, saying it would bolster global growth and deepen economic ties between the two countries.

The pact cuts US "reciprocal" duties on Indian products to 18 percent from 25 percent, and commits India to large purchases of US energy and industrial goods.

US President Donald Trump, while announcing the deal Tuesday, had said Modi promised to stop buying Russian oil over the war in Ukraine.

The deal eases months of tensions over India's oil purchases -- which Washington says fund a conflict it is trying to end -- and restores the close ties between Trump and the man he describes as "one of my greatest friends."

"Great news for India and USA!" Modi said on X on Saturday, praising US President Donald Trump's "personal commitment" to strengthening bilateral ties.

The agreement, he said, reflected "the growing depth, trust and dynamism" of their partnership.

Modi's remarks came hours after Trump issued an executive order scrapping an additional 25 percent levy imposed over New Delhi's purchases of Russian oil, in a step to implement the trade deal announced this week.

Modi, who has faced criticism at home about opening access of Indian agricultural markets to the United States and terms on oil imports, did not mention Russian oil in his statement.

"This framework will also strengthen resilient and trusted supply chains and contribute to global growth," he said.

It would also create fresh opportunities for Indian farmers, entrepreneurs and fishermen under the "Make in India" initiative.

In a separate statement, Commerce Minister Piyush Goyal said the pact would "open a $30 trillion market for Indian exporters".

Goyal also said the deal protects India's sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry and milk.

Other terms of the agreement include the removal of tariffs on certain aircraft and parts, according to a separate joint statement released Friday by the White House.

The statement added that India intends to purchase $500 billion of US energy products, aircraft and parts, precious metals, tech products and coking coal over the next five years.

The shift marks a significant reduction in US tariffs on Indian products, down from a rate of 50 percent late last year.

Washington and New Delhi are expected to sign a formal trade deal in March.


Gold Bounces Back on Softer Dollar, US-Iran Concerns; Silver Rebounds

Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
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Gold Bounces Back on Softer Dollar, US-Iran Concerns; Silver Rebounds

Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth

Gold rebounded on Friday and was set for a weekly gain, helped by bargain hunting, a slightly weaker dollar and lingering concerns over US-Iran talks in Oman, while silver recovered from a 1-1/2-month low.

Spot gold rose 3.1% to $4,916.98 per ounce by 09:31 a.m. ET (1431 GMT), recouping losses posted during a volatile Asia session that followed a fall of 3.9% on Thursday. Bullion was headed for a weekly gain of about 1.3%.

US gold futures for April delivery gained 1% to $4,939.70 per ounce.

The US dollar index fell 0.3%, making greenback-priced bullion cheaper for the overseas buyers.

"The gold market is seeing perceived bargain hunting from bullish traders," said Jim Wyckoff, senior analyst at Kitco Metals.

Iran and the US started high-stakes negotiations via Omani mediation on Friday to try to overcome sharp differences over Tehran's nuclear program.

Wyckoff said gold's rebound lacks momentum and the metal is unlikely to break records without a major geopolitical trigger.

Gold, a traditional safe haven, does well in times of geopolitical and economic uncertainty.

Spot silver rose 5.3% to $74.98 an ounce after dipping below $65 earlier, but was still headed for its biggest weekly drop since 2011, down over 10.6%, following steep losses last week as well.

"What we're seeing in silver is huge speculation on the long side," said Wyckoff, adding that after years in a boom cycle, gold and silver now appear to be entering a typical commodity bust phase.

CME Group raised margin requirements for gold and silver futures for a third time in two weeks on Thursday to curb risks from heightened market volatility.

Spot platinum added 3.2% to $2,052 per ounce, while palladium gained 4.9% to $1,695.18. Both were down for the week.