The Trump administration is ordering federal agencies to submit plans by April 14 to relocate bureaus and offices outside the Washington, D.C., area, and many are wondering what kind of major blow this could have on the economy.

A new directive from the Office of Management and Budget (OMB) and the Office of Personnel Management (OPM) instructs agency heads to identify which offices should be moved to other regions of the country. It aligns with Trump’s broader push to reduce the federal government’s real estate footprint and shift power away from Washington.

At his first cabinet meeting, he singled out the Department of Education as a key agency that could downsize its D.C. presence. He has previously floated eliminating the department entirely, arguing states should control their own education policies.

However, the political and economic impacts on the D.C. region are massive. Federal jobs make up nearly a quarter of the District’s workforce and more than a quarter of its wages.

With many federal leases locked in for years, the question remains: Will this plan shrink government or create a logistical nightmare?

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