The recent federal government shutdown—the longest in U.S. history—has underscored the precarious financial situation faced by many residents in the Washington, D.C. metropolitan area, according to United Way of the National Capital Area. Speaking at a briefing on Thursday, November 13, CEO Rosie Allen-Herring welcomed the reopening of government operations but warned that the consequences of missed paychecks and disrupted aid programs will linger for months, particularly for vulnerable populations.
Allen-Herring emphasized that the shutdown revealed how fragile economic security remains for thousands of households, including federal employees who went unpaid and families dependent on SNAP benefits. She described the six-week closure not merely as an inconvenience but as a prolonged crisis marked by uncertainty.
Headquartered in D.C., United Way delivers essential services in food, health care, education, and financial stability across the region. At the briefing, officials presented findings from their latest report on ALICE households—individuals who are employed and above the federal poverty line but still unable to afford a basic survival budget. For a single-person household, that threshold is approximately $49,000 annually; for a family of four, it exceeds $118,000. In Fairfax County, the figures are even higher: $51,684 and $123,204 respectively, based on 2023 data that predates the full impact of post-pandemic inflation.
About 100,000 households—roughly one in four—in Fairfax County and the cities of Fairfax and Falls Church fall into the ALICE category. These families represent one in six such households region-wide. Rising costs for essentials like housing, food, transportation, child care, and medical care have pushed many into a state of constant financial stress, said Racquel Farah, United Way’s data and research manager. She noted that a single unexpected expense could push these individuals into poverty or crisis.
One such resident is Charlene, a full-time worker and single mother of two, who continues to struggle with daily expenses despite her employment. She stressed the need for greater awareness around the challenges faced by ALICE families, stating, “If we don’t raise the awareness, it’s never going to change.”
Allen-Herring highlighted the importance of public-private collaboration and policy reform to address systemic inequities. She emphasized that solutions must be multifaceted, as the issue is neither uniform nor simple. The ALICE population, she noted, forms the backbone of the regional economy yet remains largely overlooked.
Investments in this group, she argued, generate broader community benefits, creating ripple effects throughout the local economy. She called the current moment a critical opportunity for action.
She and other speakers commended Fairfax County’s One Fairfax policy, which integrates equity into governance decisions, as a model for other jurisdictions. Among its initiatives is an economic mobility pilot program providing monthly cash assistance to ALICE households over 18 months to assess impacts on financial resilience.
— news from FFXnow
— News Original —
Federal shutdown exposed economic instability faced by many in D.C. region, nonprofit says
In the wake of the country’s longest-ever federal government shutdown, a key safety-net organization is calling for a renewed emphasis on helping lower-income, working residents achieve economic independence across Fairfax County and the broader D.C. region. n nWhile welcoming the shutdown’s end on Thursday (Nov. 13), United Way of the National Capital Area President and CEO Rosie Allen-Herring said at a briefing that her organization believes “the impact will be felt, for thousands, for months ahead.” n nThe looming end of subsidies for American Care Act health insurance policies coupled with the potential of an economic downturn could compound existing challenges for people already struggling to make ends meet, she said. n n“The shutdown magnified how fragile financial stability is for many households in our region,” Allen-Herring said in a statement. “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.” n nBased in D.C., United Way provides food, health, education and economic support services to residents throughout the region. n nAt yesterday’s briefing, United Way officials highlighted the findings of the nonprofit’s recently released report on ALICE households, an acronym that stands for Asset Limited, Income Constrained and Employed. n nThe term refers to people who have a job and live above the federal poverty level but don’t earn enough to achieve an economic “survival budget” for the region, defined as about $49,000 for a single-person household and more than $118,000 for a two-adult household with two young children. n nAccording to the report, the survival-budget figures for Fairfax County are even higher: $51,684 for a single-person household and $123,204 for a family of four, based on the most recent (2023) data that doesn’t fully capture the post-pandemic spike in inflation. n nApproximately 100,000 households — one in four — in Fairfax County and the cities of Fairfax and Falls Church fit the ALICE category. That total represents about one in six ALICE households across the region, officials said at the briefing. n nRising costs of food, housing, health care, transportation and child care have led many of those households to live in “a state of perpetual stress and uncertainty” where they face “a constant battle to make ends meet,” said Racquel Farah, a data and research manager at United Way. n nMany are “one unexpected event away from slipping into poverty or crisis,” Farah said. n nAmong those living in the ALICE category is Charlene, a divorced mother of two boys aged 7 and 10 who works full time but still finds it difficult to meet the family’s living expenses. n n“It’s still a struggle,” she said. “It’s hard to make ends meet.” n nCharlene — whose last name was redacted out of consideration for her privacy — said tackling the issue of ALICE families needs to come to the forefront. n n“If we don’t raise the awareness, it’s never going to change,” she said of the challenges facing that economic group. n nIn response to a question from FFXnow, Allen-Herring said a key focus needs to be “getting public-private partnerships to work” on the issue, and promoting changes in public policy. n n“It’s not monolithic. It’s not homogeneous,” she said of ways to address the issues. n nThe ALICE cohort is “the engine that makes our economy and our local lives run,” Allen-Herring said. “Yet they are often overlooked.” n nAddressing the needs of those who earn too much to qualify for government assistance, but too little to meet the region’s high cost of living, will benefit more than the individuals themselves, she said. n n“Every investment in ALICE … has a ripple effect in the community and our economy,” Allen-Herring said. “Now is the time to meet the moment.” n nShe and others praised Fairfax County’s One Fairfax policy, which puts equity at the forefront of decision-making. United Way officials said the policy serves as a guide for other localities to follow. n nAmong the county’s efforts has been an economic mobility pilot, in which households in the ALICE category received monthly cash payments for 18 months to determine the effect on their economic stability.