Federal government shutdown impacting Oakland small businesses
By Da Lin
Twenty-four days into the federal government shutdown, thousands of federal workers are now missing their first full paycheck – and the economic consequences are spreading beyond workers at government buildings.
Just across the street from the Ronald V. Dellums Federal Building in Downtown Oakland, small business owner Sam Samhouri is watching his revenue vanish. Samhouri and his wife run two restaurants – City Cup and Big Guys Burgers – and had long relied on the steady flow of federal workers who once made up the bulk of the lunch rush.
Now, he said, “The government shutdown is affecting about 30% of my business.”
Dellums has noticed more customers struggling to cover even a small meal.
“Lately, we have about 10 to 15% declined cards. So people who used their credit cards [had payments] declined,” he said. “I’ve never had a tab. Now I do have a tab, for a few people I’ve known for a long time, I have a tab for them.”
Some furloughed federal workers are turning to rideshare and food delivery jobs to stay afloat.
“A majority of federal workers are [living] paycheck to paycheck,” said Rep. Lateefah Simon (D-Oakland). “Our federal workers span the region in this district. 10,000 federal workers are affected by this shutdown. We’re seeing an increased number of those federal workers pre-emptively – they’re not going to get their full checks this week – go to our food banks and seek out low-interest loans from our community banks.”
For Samhouri, the shutdown is the latest blow. He’s still recovering from the pandemic when office workers shifted to remote work, and a series of costly break-ins – about 10 over the last three years.
“I’ve got one more year to go,” he said. “When my daughter finishes, graduates from school, I’m done.”
He said business has never been this slow. “10 minutes before 12 [p.m.], empty [in the restaurant], the street is empty.”
While Simon and other lawmakers said they are fighting to protect health care funding, which is the main sticking point, Samhouri said the political gridlock is pushing small businesses to the brink.
“Between the Democrats and Republicans, they don’t care. They’re both hard heads,” he said.
Even if Congress reaches a deal soon, he said it could take weeks before customers can comfortably spend again.
Meanwhile, state officials warn that 5.5 million low-income Californians who rely on CalFresh food assistance could be affected if the shutdown continues, potentially jeopardizing full SNAP benefits for November.
