Maryland federal contractor layoffs increase as Trump slashes federal spending

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Maryland federal contractor layoffs continue to rise as the Trump administration makes major organizational changes and slashes federal agency budgets. More than 3,000 employees at companies that contract with the federal government have received layoff notifications this year, according to a Maryland database. Many companies reporting layoffs worked with the United States Agency for International Development (USAID), which provides humanitarian assistance around the world. Others worked with agencies like NASA, the Department of Education and the Department of Health and Human Services.

Federal reliance: In Maryland, if federal employment were to decline by 30,000 with 10 percent less in federal spending, the state’s total employment would decrease by close to 100,000, according to the Regional Economic Studies Institute at Towson University. This highlights the state’s prolonged dependence on federal employment and funding, raising concerns about economic self-sufficiency.

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