The Rockville Mayor and Council met on February 9, 2026, when Rockville Economic Development, Inc. (REDI) presented a major economic briefing about how federal policy changes are affecting the city. The full reports — including the Economic Impact presentation and supporting materials — are available in the Council agenda packet posted on the city website. Together they paint a clear picture: Rockville’s economy is stable today, but entering a period of structural transition.

City officials reviewed a detailed economic report showing Rockville is highly exposed to federal employment and contracting. Roughly one-fifth of local workers depend on federal jobs or funding. Layoffs and reduced contracting increased unemployment and softened consumer spending. Office vacancies remain high as contractors shrink their footprints, while housing listings have risen across the region. The economy is not collapsing — but it is shifting away from federal-driven growth toward a more uncertain private-sector future. Note: This post is based on the reports provided by REDI in the Council agenda packet; in a future post I hope to share the City Council’s reaction.

Economic Impact of Federal Changes

City officials reviewed new economic data showing Rockville’s unusually high dependence on federal employment and contracting. Layoffs and procurement slowdowns have nudged unemployment upward and softened local spending. Office vacancy remains elevated at 25% as federal contractors reduce space, and housing listings across the region have increased by 64% from 2024 to 2025. The report emphasized that Rockville is not entering a recession — instead, it is adjusting to a structural shift in how the federal government operates and how the regional workforce is organized.