NORFOLK, Va. — As Congressional leaders are less than three days away from a government shutdown, Hampton Roads is bracing for jabs to the economy's core.
House Republicans regrouped on Tuesday and voted to open debate on a package of spending bills. However, hundreds of thousands of government workers will go without pay if a deal is not reached by the end of September 30.
RELATED: Congress says it wants to avoid a shutdown. But the House and Senate are moving even further apart.
"At the end of the day, we're looking at a shutdown and we're really in the bullseye of the economic impact," ODU Economics Professor Bob McNab said. "We are amongst the largest federal employers in the nation with regards to other metro areas."
McNab explained because Hampton Roads is tied to 40% of federal funding, we could quickly see the impacts trickle down to our area.
"Are the parks going to be open? Likely not. What about food inspections out in Smithfield? That's a question also. Will there be enough people at the airport to do screenings? Will there be people in the control towers? And if they're not getting paid, how happy will they be doing their jobs?" McNab asked.
McNab said because there is infighting among House Republicans instead of just between the two political parties, this creates an unpredictable outcome if they do not reach a deal in time. It could leave Hampton Roads in a tricky position.
"If they can't agree, or agree to blow things up, then nothing is going to move forward," McNab said. "For Hampton Roads, this means uncertainty is really high."
McNab said everything from real estate to car sales, to business at local restaurants, and everything else will be harmed. He added because policymakers would not be able to have access to new economic data, they would be left incapable of predicting what would come next for our economy and how to address it.
The last government shutdown was from December 2018 until January 2019 and is the longest one ever at 35 days. McNab said if this one goes past 60 days and nears 90 days, Virginia and the rest of the nation will likely fall into a recession.
"We could be talking about a recession definitely here in Hampton Roads," McNab said. "The longer the shutdown goes on, the greater the likelihood of entering an economic downturn next year."
The potential government shutdown would also slow down food assistance programs like "Women, Infants, and Children" program and "SNAP" benefits.