Fiscal Harms of Federal Firing Act

Study of federal layoffs' budget impacts

If enacted, the Comptroller General (GAO) would study how federal reductions in force affect State and local budgets, revenues, and spending. The bill would define a "reduction in force" to include RIFs under subchapter I of chapter 35 or section 3595 of title 5, and other large civil service downsizings. The GAO would examine unemployment insurance, Medicaid and other health programs, workforce retraining, housing and income assistance, and State and local tax revenues (income, sales, and property). The study would also cover regional economic effects, administrative challenges, differences by RIF size and concentration, and historical case studies from the 20 years before the study. The GAO would consult governors' offices, State and local budget and workforce officials, OPM, DOL, and researchers. A report would be sent to the specified Senate and House committees and posted on the GAO website not later than 18 months after enactment.