A wave of anxiety is sweeping through Washington, D.C., as federal employees face unprecedented job insecurity due to President Trump's and Elon Musk's Department of Government Efficiency (DOGE) initiative. Spending cuts and program terminations are leading to layoffs and buyouts, leaving the Capitol in a state of shock less than three weeks into Trump's second term.

Politico's Michael Schaeffer describes a palpable shift in the city's atmosphere, noting a sense of transformation and unease that may be permanent. His recent column highlights the sudden anguish experienced by government workers, many of whom live in one of the nation's most affluent areas.

The USAID, among other agencies, has found itself targeted by DOGE's cost-cutting measures. The resulting uncertainty has sent ripples through the local economy, which is heavily reliant on federal spending. Experts like Yesim Sayin of the D.C. Policy Center emphasize the magnitude of the situation, comparing it to a "nuclear bomb" detonating long-term plans.

Schaeffer points out the novelty of this economic paranoia for a city built on the bedrock of government stability. Federal paychecks and government contracts have long provided a sense of security, but that foundation is now wobbling, creating a sense of bewilderment and vertigo.

Trump's mandate for federal workers to accept buyouts or return to in-person work has sparked legal challenges. Several unions, including the American Federation of Government Employees (AFGE), have filed a lawsuit alleging that the buyout offer is unlawful and arbitrary. A federal judge recently extended the deadline for workers to decide, providing a temporary reprieve.

The situation has drawn comparisons to Detroit's decline during the auto industry collapse. Former D.C. journalist Ron Fournier, who now resides in Detroit, believes the D.C. workforce may not fully recover, highlighting the psychological impact of lost stability and optimism.

As the city grapples with this unprecedented upheaval, the long-term consequences for Washington's economy and its residents remain uncertain.