More than two weeks into the federal government shutdown, certain municipalities of all sizes across America are feeling the ripple effects. As the leading voice for the nation’s cities, towns and villages, NLC is spotlighting these local leaders’ stories.
Testimonials: Economic Impact
From small businesses to tourism to furloughed federal employees, local economies are often the first to be affected.
“We’re having a hard enough time with things the way they are in the economy…You know, we don’t need a government shutdown to detract from those people who have already committed to coming here,” said Moab, Utah, city councilmember Jason Taylor.
Communities with high numbers of federal employees, like Alexandria, Va., can be disproportionately affected. “Those folks can’t pay rent, can’t pay real estate taxes, can’t go shopping. That’s hurting the commercial base here…You’re talking about child care, you’re talking about restaurants, you’re talking about just going to shop at Marshall’s to buy a shirt, right? Someone’s not doing that anymore if they’re staying home,” said Alexandria city councilmember Canek Aguirre.
Local governments often lead on economic development initiatives, not only because development can create a better way of life and novel opportunities for their constituents, but because development increases funds to improve municipal service delivery, allowing public sector businesses to grow in revenue as well.
Testimonials: Public Safety
Constituents may first start to feel the federal government shutdown’s effects when everyday municipal services–such as public safety or other social safety net services–are slowed or outright halted.
“In previous shutdowns, many of our federal and military personnel—essential members of our community—were still required to report for duty without pay, putting added strain on local resources like food banks and emergency assistance programs as families work to keep up with rent, mortgages, and groceries,” said Tacoma, Wash. Mayor Victoria Woodards.
The effects can be notable in military communities, said Colorado Springs, Colo. Mayor Yemi Mobolade.
“As a city with deep military and defense roots, Colorado Springs knows firsthand the sacrifices that come with serving our country. In light of the federal government shutdown, my heart is with the many families in our community who may be directly impacted. To our service members, defense workers, and federal employees; we see you, we value you, and we stand with you. Colorado Springs is resilient, and we will continue to support one another through this uncertain time.”
Some local leaders note they are trying to anticipate impacts if the federal shutdown continues. As Chris Giglio, federal advocate for the City of Pasadena, Calif., said, “For Pasadena, the earliest local impacts would likely surface after several weeks, as monthly federal reimbursements come due. Section 8 payments to landlords, monthly WIC benefits and Head Start draws are all paid on monthly cycles; if the shutdown persists, delays could begin to appear as those cycles hit.”
Because local leaders live in the same communities as their constituents, they see and feel the effects of their own day-to-day work. While often positive and rewarding, this also means they are the ones to first see and feel the unraveling of essential, collaborative systems.
City Summit: Leading Through Uncertainty
The theme of this year’s City Summit conference is “leading through uncertainty,” which is precisely what local governments are being asked to do in this moment. Some NLC members have already taken action for their residents, such as Mayor Monique Ashton of Rockville, Md. “The federal shutdown has a very real impact on Rockville families, workers, and small businesses. We know that uncertainty about paychecks, services, and resources creates real stress in our community. That’s why Rockville, in coordination [with] federal, state, county, and municipal partners, is taking proactive steps to support our community during challenging times. Federal employees and contractors could be eligible for delayed payment options, with no penalties, on certain City or Rockville services, including childcare, water bills, rent payments, pet license fees, and food services.”
NLC President and Mayor of Athens, Ohio, Steve Patterson, said local leaders need certainty in their communities.
“What we need from our federal partners right now is certainty, a clear path forward that supports our local economies. Fear of the unknown has the potential to stall progress. I urge Congress to prioritize consensus and work quickly towards a bipartisan compromise that would restore stability for our nation’s cities, towns and villages.”
Register Now for City Summit
Join more than 3,000 local leaders creating opportunities amid uncertainty November 19-22, 2025, in Salt Lake City.
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