As the Trump administration slashes the budgets of federal agencies, the ripple effects are already hitting Maryland’s private sector.

Since the beginning of this month, Maryland-based federal contractors have reported planned layoffs affecting more than 1,250 people, according to a state database. Almost 1,000 of those jobs are based in Montgomery County. Another 271 jobs are in Prince George’s County.

The federal government directly employs about 10% of Maryland’s workforce ― an estimated 327,000 employees — according to the U.S. Census Bureau. But the federal government’s total impact on Maryland’s economy is actually much higher.

Uncle Sam is the number one customer for some of Maryland’s biggest employers, like aerospace and defense company Northrop Grumman and the Johns Hopkins Applied Physics Laboratory in Howard County. But an ecosystem of smaller contractors and subcontractors also depend on the U.S. government.

Federal spending accounted for one-tenth of Maryland’s GDP in 2022, according to Maryland Comptroller Brooke Lierman.

Since President Donald Trump’s inauguration on Jan. 20, members of his administration — led by the world’s richest man, Elon Musk — have announced a raft of cuts to agencies like the United States Agency for International Development, or USAID.

USAID financed and supported programs in developing countries for decades, some of which are administered through organizations based in Maryland. The Trump administration effectively dismantled it in the span of a few days.

The administration’s budget slashing also appears to be reaching several companies that are now giving notice of upcoming layoffs to the Maryland Department of Labor.

• DAI Global in Montgomery County: 506 jobs
• EnCompass in Montgomery County: 194 jobs
• Science Systems and Applications in Prince George’s County: 148 jobs
• Creative Associates International in Montgomery County: 37 jobs
• Peraton’s Environmental Test & Integration Services in Prince George’s County: 123 jobs
• Abt Global in Montgomery County: 241 jobs

According to their websites, those firms either contracted with or provided staffing for USAID. Others reported contracts with agencies like NASA.

Some companies notify the state of layoffs that ultimately may not occur, for example, if a new contract comes through or if business plans change.

DAI Global’s layoffs are marked as temporary in the state’s database, meaning those workers will be furloughed with the possibility of returning to work.

Last month, a federal vocational and academic training center in Baltimore County reported it would cease operations and lay off 117 employees.

Woodstock Jobs Corps Center, which prepared students for careers in welding, health care, business and more, had been temporarily closed because of cuts made during the Biden administration.

Officials asked Congress and the incoming Trump administration for support. But within days of the new presidency, the center’s temporary closure became permanent.