United Way of the National Capital Area Welcomes Reopening of Federal Government and Cautions Impact Will Have Lasting Ripple Effects

Washington, D.C. (November 13, 2025) — United Way of the National Capital Area (United Way NCA) welcomes the reopening of the federal government following a 43-day shutdown that began on October 1. The end of this particular disruption brings relief to thousands of federal employees, contractors, and families across the region, who can now return to work and resume receiving income. However, the impact will be felt by thousands for months ahead.

Earlier in the shutdown, United Way NCA cautioned that thousands of families were already on the brink of financial crisis. Six weeks later, those predictions have unfortunately proven true. The combined effects of missed paychecks, cuts to the Supplemental Nutrition Assistance Program (SNAP), and rising costs have left many households—particularly ALICE (Asset Limited, Income Constrained, Employed) families—struggling to regain stability.

“While we are pleased that our friends and neighbors are returning to work, the financial impact will not disappear overnight,” said Rosie Allen-Herring, President and CEO of United Way of the National Capital Area. “The shutdown magnified how fragile financial stability is for many households in our region. For both federal workers who missed paychecks and families who rely on SNAP, the past six weeks have been a crisis of uncertainty, not just inconvenience.”

Across the National Capital Area, more than 600,000 households—representing an estimated 1.4 million adults and children—live below the ALICE Threshold. These are households that earn above the Federal Poverty Level but still cannot afford essentials such as housing, child care, food, transportation, and health care. ALICE includes the region’s essential workforce: preschool teachers, grocery clerks, delivery drivers, home health aides, and, increasingly, federal workers and contractors.

“While most federal workers do not qualify for SNAP benefits, the shutdown placed many of them in the same position as ALICE families,” said Allen-Herring. “Missed paychecks placed many individuals and families into a financial crisis, which will have lasting ripple effects. At the same time, SNAP recipients have faced significant benefit cuts and payment delays, not knowing where their next meal will come from. This has further strained local food banks and community programs already facing a tremendous increase in demand with fewer resources.”

The Urban Institute estimated that more than 230,000 families across the D.C. metropolitan region would experience reduced or eliminated SNAP benefits, resulting in the loss of approximately 40 meals per month for a typical family in Washington, D.C. Feeding America estimates that food banks can replace only one of every nine SNAP meals lost to federal benefit reductions.

Through its five Financial Empowerment Centers (FECs) located across D.C., Maryland, and Virginia, United Way NCA continues to see record demand for services. The organization has reported a 20 percent increase in engagement from dislocated federal workers and a sustained rise in requests for financial coaching, housing, and food assistance.

“Our message is clear: While the government shutdown has ended, the journey to recovery for tens of thousands of households is only just beginning,” said Allen-Herring. ”That is why United Way of the National Capital Area remains steadfast in its commitment to strengthening the safety net for ALICE families—those who work hard yet continue to face barriers to financial stability.”

United Way NCA calls on community members, businesses, and policymakers to come together to support long-term recovery.

“When we build systems that support ALICE through education, healthcare access and financial stability, we strengthen our entire region,” Allen-Herring added. “Now is the time to meet the moment, especially as the holiday season quickly approaches, to ensure that every household in the National Capital Area and beyond has the resources to not only survive but thrive.”

Media Contact:

Cyndi Sutton for United Way NCA
cyndi@jrcommunications.com
(571) 213-0401

About United Way of the National Capital Area

United Way of the National Capital Area works to improve the health, education, and economic opportunity of every person in the National Capital community. United Way NCA creates measurable impact in the District of Columbia, Northern Virginia, Montgomery, and Prince George’s Counties for nearly 100 years. In 2020, United Way NCA was among 384 organizations across the United States to receive a generous transformational investment from novelist and venture philanthropist, MacKenzie Scott. For more information about United Way of the National Capital Area, visit UnitedWayNCA.org.