H.R. 7507

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7507 Introduced in House (IH)]

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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 
governments, 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Fiscal Harms of Federal Firings 
Act''.

SEC. 2. FINDINGS.

Congress finds the following:
(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 demand for 
State-administered services, including unemployment insurance, 
medicaid, workforce retraining, 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 significantly in 
their fiscal capacity to absorb the short- and long-term 
impacts of large-scale Federal workforce reductions.
(5) There is currently no comprehensive Federal 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 GOVERNMENT 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 governments.
(b) Scope of Study.--The study shall examine, at a minimum--
(1) changes in State or local government expenditures 
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 programs;
(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 employment 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 capacity and 
labor market conditions;
(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 governments 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 officers 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 administrative 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--
(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 Government 
Reform of the House of Representatives; 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 administrative 
changes to provide support for displaced 
employees and States and local governments 
impacted by RIFs;
(B) identification of States and local governments 
that experienced the greatest fiscal effects of RIFs;
(C) projected short-term and long-term budgetary 
impacts on States and local governments; and
(D) policy options for Congress to consider, 
including potential Federal assistance, coordination 
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.
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