Dec 17, 2025 - News

Report: D.C. takes the biggest hit as DMV spending slumps

Consumers are spending less in the DMV — and D.C. is taking the biggest hit, according to a new Brookings report.

Why it matters: The findings undercut President Trump's claims that the federal takeover boosts D.C. business.

The nonpartisan think tank says the administration's policies have been "notably bad" for visitor spending — a big deal in a city where sales taxes make up nearly 17% of revenue.

Driving the news: Four years of regional consumer data show declines across both visitor and local spending.

Local spending this year is just 1.1% below 2024 — suggesting minimal early impact from federal downsizing.
That changed after the National Guard deployment: In spring, D.C. residents outspent last year. By August and September, the gap between D.C. and the region widened two-to-three times.

By the numbers: DMV residents spent 7.4% less in August and 8.3% less in September compared with 2024.

Between the lines: The data stops before the recent federal shutdown.

Stunning stat: Regional restaurant spending plunged 17.4% since 2022 — the peak of pandemic "revenge spending."

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