Mayor Steven L. Reed warned that the federal government shutdown could harm Montgomery's economy and residents who rely on federal programs. "I just saw a report today about the economic impact of the shutdown expecting to be in the tens of billions of dollars," Reed said during an interview on the Mayor's Tape.

Reed said the shutdown has already affected benefit payments and household spending. "SNAP benefits and other programs that have essentially been defunded by the Republican Congress," he said, adding that people "aren't going to be spending, you know, like they normally would spend." Reed said reduced spending will lower demand for restaurant staff and other service workers: "If you're not going out to eat as much, how much'wait staff do I need? Do I need all 3 of those cooks and chefs in the back? I don't. I may only need 1 or 2."

The mayor framed the potential impact as a local ripple effect: lower consumer spending could shrink hours or positions in hospitality and related sectors and slow local economic activity. He pointed to uncertainty over whether federal program recipients will receive benefits and said that even people who must continue to work can be placed under financial strain if paychecks are delayed.

Reed also tied the local situation to national politics by noting which federal decisions have led to paused funding, and urged residents and local institutions to plan for a possible contraction in spending. He said the city is monitoring conditions and encouraged community organizations to prepare for higher demand for food and basic-assistance programs.

The remarks were part of a broader conversation that included community events and other municipal business. No specific local budget changes or formal city actions were announced during the interview.