According to The HR Digest, an estimated 390,000 to 600,000 private sector workers will be affected by the 25% pay cut in industries like construction, concessions, federal lands and other government areas. Private companies with existing contracts will maintain the current minimum wage until those agreements end, but workers under future federal contracts will be paid the reduced rate of $13.30 per hour.

The federal minimum wage remains $7.25 per hour since it was enacted on July 24, 2009, per the DOL. While the new wage standards are higher, many federal contract workers will still feel the cut’s impact, as the previous $17.75 minimum provided a better salary and encouraged more people to apply for government positions.

According to The Baltimore Banner, Trump’s federal worker cuts could impact the nation’s two wealthiest Black counties with median household incomes exceeding $100,000: Charles and Prince George’s counties, part of the Southern Maryland region.

“The revenue has decreased significantly,” Herb Banks, owner of Copper Compass Distillery in the Waldorf area of Charles County, said.

According to The Baltimore Banner and U.S. Census data, the federal government employs approximately 1 in 5 Black workers in the area.

“This could have devastating effects across these communities,” Duke University economist William A. “Sandy” Darity told the outlet.

federal workers

Get relevant content delivered to you once a week