Wallethub: Maryland Third Most Affected State By Partial Government Shutdown

It affects all areas of Md., not just those near the DC border.


Frederick, Md (KM) There doesn’t appear to be any end to the partial government shutdown which enters its 14th day on Friday, and it could affect the local economy if it continues any longer.

An analysis by the personal financial website Wallethub has found that Maryland is the third most affected state by the shutdown, behind New Mexico and Washington DC. “And it’s largely due to–no surprise here–a very high share of federal jobs. It’s actually tied with DC for the highest share. It’s also tied for the highest federal contract dollars per capita. So two things that residents relied upon for income and work,” says Jill Gonzalez, an analyst with Wallethub.

The partial government shutdown began on December 22nd when President Trump and Democrats in Congress couldn’t come to agreement on funding for several agencies. Trump wanted $5-billion for a wall along the border with Mexico. Democrats have refused to fund the wall.

One of the agencies most affected is NASA. “About 96% of NASA employees have been told to stay home during this partial shutdown,” says Gonzalez. “It’s hit more than most other government agencies.”

Another affected agency is the IRS, where 53,000 employees were furloughed, or were told to work without pay. “And that not only affects tax season, which we’re about to be in the thick of. But it also affect mortgage processing because there are not only shortages at the IRS, but at the FHA {Federal Housing Administration} and the VA {Department of Veterans Affairs},” says Gonzalez.

But it’s not just federal employees who are affected. Families which depend on the Supplemental Nutritional Assistance Program, or SNAP or Food Stamps, could be impacted if  the shutdown continues. . :”Even though those fundings will continue through the partial shutdown–at least during it–they could eventually run out, depending upon how much longer it goes on for,” she says.

If the shutdown continues, Gonzalez says it could affect Maryland’s economy. “Especially in a place like Maryland that has so many federal jobs and federal workers. That’s going to affect its own state economy, and consumer spending for those residents within the states,” she says. “So Maryland is already at a disadvantage when compared to states not as affected.”

She says this could lead to federal workers who are furloughed or working without pay curtailing their spending, and that will impact retailers who wont’ take in as much sales revenue.

Gonzalez also says this impact from the partial federal shutdown won’t just affect areas located near the DC line. “I would say any area within Maryland is going to be hit a little more hard than those that are out of the state,” she says. “Even though it’s not directly next to DC, it still employs a lot of federal workers who might be staying home over the next couple of weeks.”

Wallethub is a personal finance websites examines world events, and explains how they affect consumers.

On Thursday, the Democratic majority in the House of Representatives passed two bills designed to end the partial shutdown. But Senate Majority Leader Mitch McConnell has said he will not bring them before Senators for a vote because he says the President will not sign them.



By Kevin McManus