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S3844119th CongressWALLET

Fiscal Harms of Federal Firing Act

Sponsored By: Senator Alsobrooks, Angela D. [D-MD]

Introduced

Summary

Comprehensive study of how federal reductions in force affect state and local budgets and services. This bill would require a focused look at worker displacement, increased demand for state programs, and local tax revenue losses.

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  • Workers and families: The study will examine likely increases in unemployment insurance claims, Medicaid and other health program enrollment, demand for workforce retraining, and requests for housing or income assistance.
  • State and local governments: The report will measure changes in income, sales, and property tax revenue and document administrative and operational challenges across jurisdictions with different fiscal capacity.
  • Local economies: The Comptroller General would assess regional employment shifts, spillover effects on private firms, and identify regions with concentrated federal job losses.
  • Report and policy options: The Comptroller General must consult state and local budget officers and relevant federal agencies, analyze up to a 20-year period of past reductions, and deliver a public report within 18 months with findings and recommendations for federal assistance, coordination, or planning tools.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Study of federal job cuts' local impacts

This bill would require the Government Accountability Office to study how federal job cuts affect State and local budgets. The study would examine effects on displaced workers and demand for unemployment insurance and Medicaid. It would also look at workforce retraining, housing and income assistance, and changes in State and local tax revenues. The Comptroller General would consult governors, State and local budget officers, OPM, the Department of Labor, and outside experts. Not later than 18 months after enactment, the GAO would send a public report to Congress with findings, whether studied reductions improved agency efficiency, places with the biggest fiscal effects, projected short- and long-term impacts, and policy options including possible Federal assistance and coordination tools.

Sponsors & CoSponsors

Sponsor

Alsobrooks, Angela D. [D-MD]

MD • D

Cosponsors

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 2/11/2026

  • Sen. Warner, Mark R. [D-VA]

    VA • D

    Sponsored 2/11/2026

  • Sen. Padilla, Alex [D-CA]

    CA • D

    Sponsored 2/11/2026

Roll Call Votes

No roll call votes available for this bill.

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