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WASHINGTON (AP) — The Department of Government Efficiency’s remaking of the federal workforce has battered the Washington job market and put more households in the metropolitan area in financial distress, according to a report released Wednesday.

The number of homes for sale in the District of Columbia, Maryland and Virginia region, also known as the DMV, is up by 64% since June 2024, and the region’s unemployment rate is the highest in the nation, according to the DMV Monitor, a real-time data interactive created by the Brookings Institution with the Metropolitan Washington Council of Governments.

Washington has had the nation’s highest seasonally adjusted unemployment rate for four straight months. The unemployment rate was 5.3% in January and ticked up to 6% in August, compared with the 4.3% national average, according to Bureau of Labor Statistics data.

From the start of President Donald Trump’s second term in January, DOGE, led by his then-adviser Elon Musk, instigated purges of federal agencies with the expressed mission of rooting out fraud, waste and abuse. DOGE led to tens of thousands of job cuts, including layoffs and people who accepted financial incentives to quit. Some people were rehired, a reflection of the haphazard process. Although losses were felt around the country, the Washington area was particularly hard hit.

Scott Kupor, director of the U.S. Office of Personnel Management, said last month that there will be 300,000 fewer federal workers on the payroll nationwide by the end of the year. The government has about 2.5 million workers, including military members.

Contractors have been affected, too. DOGE’s website states that 13,231 federal government contracts have been terminated, totaling $59 billion in savings. In fiscal year 2024, more than 100,000 companies received contracts, totaling roughly $774 billion.

Besides the mass layoffs, the Republican president’s other actions to remake the image of the nation’s capital — including deploying National Guard troops and federalizing the city’s local Metropolitan Police Department — “could shape consumer spending and investment in the local economy,” the report says.

The report also says private-sector job growth is stagnating, “with many new jobs not aligned with the skills and experiences of most laid-off federal workers.”

“As a result,” it says, “job postings were not as robust as they were in peer regions, which is concerning when unemployment has soared, especially in the suburbs.”

Taylor Rogers, a White House spokeswoman, said D.C. “has often had the highest unemployment rate in the nation, even during Joe Biden’s federal hiring frenzy.” D.C.’s unemployment rate hit 11.3% at the height of the COVID-19 pandemic and fell to 5.3% at the end of Biden’s presidency. “This longstanding problem is due to an overreliance on federal bloat and sky-high crime, two problems that President Trump is quickly and successfully fixing by cracking down on crime in the Nation’s capital and implementing supply-side reforms that have already created over half a million private-sector jobs for American-born workers,” Rogers said.

The DMV region is home to the most college graduates of any major U.S. metropolitan area, and one-fifth of federal workers are concentrated in the area.

In July, the Supreme Court cleared the way for Trump’s Republican administration to downsize the federal workforce further, despite warnings that critical government services would be lost. The ruling does not apply to every agency, and other legal challenges to federal worker firings continue.

Additionally, hundreds of federal employees who lost their jobs in Musk’s cost-cutting blitz are being asked to return to work.

“The DMV region’s economy has grown even weaker than the nation in many categories due to the Trump administration’s seismic actions to shrink the federal government,” the report reads.

And given proposed additional cuts in the future, the DC Fiscal Policy Institute predicts it’s likely more Washington residents and others from around the region who work in Washington will lose their federal jobs over the coming months and years.

The latest Washington Office of Revenue Analysis figures show that initial unemployment insurance claims have jumped by 33.7% compared with this time last year.

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ABILENE, Texas (AP) — The afternoon sun was so hot that OpenAI CEO Sam Altman traded his usual crewneck sweater for a T-shirt on the last legs of a Tuesday visit to the massive Stargate artificial intelligence data center complex that will power the future of ChatGPT.

OpenAI announced Tuesday that its flagship AI data center in Texas will be joined by five others around the U.S. as the ChatGPT maker aims to make good on the $500 billion infrastructure investment promoted by President Donald Trump earlier this year.

Stargate, a joint venture between OpenAI, Oracle and Softbank, said it is building two more data center complexes in Texas, one in New Mexico, one in Ohio and another in a Midwest location it hasn’t yet disclosed.

But it’s the project in Abilene, Texas, that promised to be the biggest of them all, transforming what the city’s mayor called an old railroad town.

Oracle executives visiting the eight-building complex said it is already on track to be the world’s largest AI supercluster once fully built, a reference to its network of hundreds of thousands of AI computer chips that will be running in its H-shaped buildings.

Altman said, “When you hit that button on ChatGPT, you really don’t — I don’t, at least” — think about what happens inside the data halls used to build and operate the chatbot.

He and Oracle’s new co-CEO Clay Magouyrk also sought to emphasize the steps they’ve taken to reduce the energy-hungry complex’s environmental effects on a drought-prone region of West Texas, where temperatures hit 97 degrees Fahrenheit (36 degrees Celsius) on Tuesday.

“We’re burning gas to run this data center,” said Altman, but added that “in the long trajectory of Stargate” the hope is to rely on many other power sources.

The complex will require about 900 megawatts of electricity to power the eight buildings.

One is already operating, and a second that Altman and Magouyrk visited Tuesday is nearly complete. Each server rack in those buildings holds 72 of Nvidia’s GB200 chips, which are specially designed for the most intensive AI workloads. Each building is expected to have about 60,000 of them.

More than 6,000 workers now commute to the massive construction project each day, in what Mayor Weldon Hurt described as a significant boost to the local economy. The campus and nearby expansion will provide nearly 1,700 jobs onsite when fully operational, Oracle said, with “thousands more indirect jobs” predicted to be created.

Hand-made signs lining the roads to the facility advertise “move-in-ready” homes for workers.

“AI WORKERS? HUGE DISCOUNTS” says one promising homes with one to six bedrooms.

But Hurt also acknowledged that residents have mixed feelings about the project due to its water and energy needs.

The city’s chronically stressed reservoirs were at roughly half-capacity this week. Residents must follow a two-day-a-week outdoor watering schedule, trading off based on whether their address numbers are odd or even.

One million gallons of water from the city’s municipal water systems provides an “initial fill” for a closed-loop system that cools the data center’s computers and keeps the water from evaporating. After that initial fill, Oracle expects each of the eight buildings to need another 12,000 gallons per year, which it describes as a “remarkably low figure for a facility of this scale.”

“These data centers are designed to not use water,” Magouyrk said. “All of the data centers that we’re building (in) this part of Stargate are designed to not use water. The reason we do that is because it turns out that’s harmful for the environment and this is a better solution.”

The closed-loop system shows that the developer is “taking its impact on local public water supplies seriously,” but the overall environmental effect is more nuanced because such systems require more electricity, which also means higher indirect water usage through power generation, said Shaolei Ren, a professor at the University of California, Riverside, who has studied AI’s environmental toll.

Indeed, the data center complex includes a new gas-fired power plant, using natural gas turbines similar to those that power warships. The companies say the plant is meant to provide backup power for the data halls and is a better option than traditional diesel generators. Most of the power comes from the local grid, sourced from a mix of natural gas with the sprawling wind and solar farms that dot the windy and sunny region.

Ren said that “even with emission-reduction measures, the health impacts of essentially turning the data center site into a power plant deserve further study for nearby communities.”

Arlene Mendler, a Stargate neighbor, said she wished she had more say in the project that eliminated a vast tract of mesquite shrubland, home to coyotes and roadrunners.

“It has completely changed the way we were living,” said Mendler, who lives across the street. “We moved up here 33 years ago for the peace, quiet, tranquility. After we got home from work, we could ride horses down the road. It was that type of a place.”

Now, she doesn’t know what to do about the constant cacophony of construction sounds or the bright lights that have altered her nighttime views. The project was essentially a done deal once she found out about it.

“They took 1,200 acres and just scraped it to bare dirt,” said her husband, Fred Mendler.

The first time most residents heard of Stargate — at least by that name — was when Trump announced the project shortly after returning to the White House in January. Originally planned as a facility to mine cryptocurrency, developers had pivoted and expanded their designs to tailor the project to the AI boom sparked by ChatGPT.

The partnership said at that time it was investing $100 billion — and eventually up to $500 billion — to build large-scale data centers and the energy generation needed to further AI development. More recently, OpenAI signed a $300 billion deal to buy computing capacity from Oracle. It’s a huge bet for the San Francisco-based AI startup, which was founded as a nonprofit.

OpenAI and Oracle invited media and politicians, including U.S. Sen. Ted Cruz, a Texas Republican, to tour the site for the first time Tuesday.

Cruz called Texas “ground zero for AI” because if “you’re building a data center, what do you want? No. 1, you want abundant, low-cost energy.”

Of the other five Stargate data center projects announced Tuesday, Oracle is working with OpenAI to build one just northeast of Abilene, in Shackelford County, Texas, and another in New Mexico’s Doña Ana County. It also said it is working to build one in the Midwest.

Softbank said it has broken ground on two more in Lordstown, Ohio, and in Milam County, Texas.

The projects offer OpenAI a way to break out from its longtime partnership with Microsoft, which until recently was the startup’s exclusive computing partner. Altman told The Associated Press his company has been “severely limited for the value we can offer to people.”

“ChatGPT is slow. It’s not as smart as we’d like to be. Many users can’t use it as much as they would like,” Altman said. ”We have many other ideas and products we want to build.”

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The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP’s text archives.

NEW YORK (AP) — YouTube will offer creators a way to rejoin the streaming platform if they were banned for violating COVID-19 and election misinformation policies that are no longer in effect, its parent company Alphabet said Tuesday.

In a letter submitted in response to subpoenas from the House Judiciary Committee, attorneys for Alphabet said the decision to bring back banned accounts reflected the company’s commitment to free speech. It said the company values conservative voices on its platform and recognizes their reach and important role in civic discourse.

“No matter the political atmosphere, YouTube will continue to enable free expression on its platform, particularly as it relates to issues subject to political debate,” the letter read.

The move is the latest in a cascade of content moderation rollbacks from tech companies, who cracked down on false information during the pandemic and after the 2020 election but have since faced pressure from President Donald Trump and other conservatives who argue they unlawfully stifled right-wing voices in the process.

It comes as tech CEOs, including Alphabet CEO Sundar Pichai, have sought a closer relationship with the Republican president, including through high-dollar donations to his campaign and attending events in Washington.

YouTube in 2023 phased out its policy to remove content that falsely claims the 2020 election, or other past U.S. presidential elections, were marred by “widespread fraud, errors or glitches.”

The platform in 2024 also retired its standalone COVID-19 content restrictions, allowing various treatments for the disease to be discussed. COVID-19 misinformation now falls under YouTube’s broader medical misinformation policy.

Among the creators who have been banned from YouTube under the now-expired policies are prominent conservative influencers, including Dan Bongino, who now serves as deputy director of the FBI. For people who make money on social media, access to monetization on YouTube can be significant, earning them large sums through ad revenue.

House Judiciary Committee Chairman Jim Jordan and other congressional Republicans have pressured tech companies to reverse content moderation policies created under former President Joe Biden and accused Biden’s administration of unfairly wielding its power over the companies to chill lawful online speech.

In Tuesday’s letter, Alphabet’s lawyers said senior Biden administration officials “conducted repeated and sustained outreach” to coerce the company to remove pandemic-related YouTube videos that did not violate company policies.

“It is unacceptable and wrong when any government, including the Biden Administration, attempts to dictate how the Company moderates content, and the Company has consistently fought against those efforts on First Amendment grounds,” the letter said.

Meta CEO Mark Zuckerberg has also accused the Biden administration of pressuring employees to inappropriately censor content during the COVID-19 pandemic. Elon Musk, the owner of the social platform X, has accused the FBI of illegally coercing Twitter before his tenure to suppress a story about Hunter Biden.

The Supreme Court last year sided with former President Joe Biden’s administration in a dispute with Republican-led states over how far the federal government can go to combat controversial social media posts on topics including COVID-19 and election security.

Asked for more information about the reinstatement process, a spokesperson for YouTube did not immediately respond to a request for comment.