I 
119TH CONGRESS 
2D SESSION 
H. R. 7507 
To require the Comptroller General of the United States to conduct a study 
of the impact of Federal reductions in force on State and local govern-
ments, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 11, 2026 
Mrs. MCCLAIN DELANEY (for herself, Mr. SUBRAMANYAM, Ms. NORTON, Mr. 
OLSZEWSKI, Mr. WALKINSHAW, Ms. ELFRETH, Mr. IVEY, Mr. MOULTON, 
Mr. VINDMAN, and Mr. LYNCH) introduced the following bill; which was 
referred to the Committee on Oversight and Government Reform 
A BILL 
To require the Comptroller General of the United States 
to conduct a study of the impact of Federal reductions 
in force on State and local governments, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fiscal Harms of Fed-
eral Firings Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) Federal Reductions in Force (RIFs) may 
displace workers, altering where affected individuals 
live and work across States and localities. 
(2) Such workforce reductions may increase de-
mand for State-administered services, including un-
employment insurance, medicaid, workforce retrain-
ing, housing assistance, and other social services. 
(3) RIFs may reduce economic activity and tax 
revenues in regions with a high concentration of 
Federal employment. 
(4) States and local governments vary signifi-
cantly in their fiscal capacity to absorb the short- 
and long-term impacts of large-scale Federal work-
force reductions. 
(5) There is currently no comprehensive Fed-
eral assessment of how RIFs affect State and local 
government budgets, revenues, and expenditures. 
SEC. 3. STUDY OF THE IMPACT OF FEDERAL REDUCTIONS 
IN FORCE ON STATE AND LOCAL GOVERN-
MENT BUDGETS. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a comprehensive study on the 
impacts of RIFs on the budgets of States and local gov-
ernments. 
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(b) SCOPE OF STUDY.—The study shall examine, at 
a minimum— 
(1) changes in State or local government ex-
penditures resulting from a RIF related to— 
(A) unemployment insurance; 
(B) Medicaid and other health programs; 
(C) workforce development and retraining; 
or 
(D) housing and income assistance pro-
grams; 
(2) impacts on State and local government tax 
revenues as a result of a RIF, including income, 
sales, and property taxes; 
(3) regional economic effects, including employ-
ment shifts and impacts on the private-sector; 
(4) administrative and operational challenges 
faced by States and local governments responding to 
RIFs; 
(5) differences in impacts on States and local 
governments based on— 
(A) size and scale of the RIF; 
(B) geographic concentration of Federal 
employees; and 
(C) State and local government fiscal ca-
pacity and labor market conditions; 
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(6) historical case studies of significant RIFs 
on States or local governments occurring within the 
previous 20 years; and 
(7) strategies used by States and local govern-
ments to mitigate fiscal and economic impacts. 
(c) CONSULTATION AND DATA COLLECTION.— 
(1) CONSULTATION.—In conducting the study, 
the Comptroller General shall seek to consult with— 
(A) State and local government budget of-
ficers and governors offices; 
(B) State and local government workforce 
and labor agencies; 
(C) relevant Federal agencies, including 
the Office of Personnel Management and the 
Department of Labor; and 
(D) economists, labor market experts, and 
public finance researchers. 
(2) DATA SOURCES.—The study may use ad-
ministrative data, surveys, economic modeling, and 
publicly available fiscal and labor statistics. 
(d) GAO REPORTS TO CONGRESS.— 
(1) DEADLINE.—Not later than 18 months 
after the date of the enactment of this Act, the 
Comptroller General shall submit a report on the 
study to— 
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(A) the Committee on Education and 
Workforce of the House of Representatives; 
(B) the Committee on Health, Education, 
Labor, and Pensions of the Senate; 
(C) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives; and 
(D) the Committee on Homeland Security 
and Governmental Affairs of the Senate. 
(2) CONTENTS.—The report under paragraph 
(1) shall include— 
(A) findings and analysis from the study, 
including— 
(i) an analysis of whether each RIF 
studied improved the respective agency’s 
efficiency; and 
(ii) any recommendations, including 
any recommendations for statutory or ad-
ministrative changes to provide support for 
displaced employees and States and local 
governments impacted by RIFs; 
(B) identification of States and local gov-
ernments that experienced the greatest fiscal ef-
fects of RIFs; 
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(C) projected short-term and long-term 
budgetary impacts on States and local govern-
ments; and 
(D) policy options for Congress to con-
sider, including potential Federal assistance, co-
ordination mechanisms, or advance planning 
tools. 
(3) PUBLIC
AVAILABILITY.—The Comptroller 
General shall make the report under paragraph (1) 
publicly available on the website of the Government 
Accountability Office. 
(e) DEFINITIONS.—In this Act— 
(1) the term ‘‘reduction in force’’ or ‘‘RIF’’ 
means a reduction in force under subchapter I of 
chapter 35 or section 3595 of title 5, United States 
Code, or any other significant downsizing of Federal 
civilian employees; and 
(2) the term ‘‘State’’ means each of the several 
States, the District of Columbia, and any territory 
or possession of the United States. 
Æ 
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