Sponsors (4)
Introduced February 11, 2026 by Angela Deneece Alsobrooks · Last progress February 11, 2026
The bill creates a public, evidence-based GAO review to improve transparency and policy options around large federal workforce reductions—helping planning and potentially identifying supports—while offering no immediate relief and leaving state/local governments, workers, and taxpayers exposed to fiscal and economic risks unless Congress funds mitigation.
State and local governments and Congress will receive a public, evidence-based GAO assessment of the fiscal and local impacts of major federal workforce reductions, including policy options to mitigate harm and transparency about RIF effects.
Displaced federal workers could benefit from GAO-identified supports (e.g., retraining, assistance) and from prompting for targeted planning to reduce the harm of RIFs.
The requirement and findings will prompt planning and coordination between federal, state, and local governments to anticipate and manage potential local fiscal shocks from RIFs.
State and local governments — and the local economies that depend on federal employers — could face higher unemployment, Medicaid, and housing costs, reduced economic activity, and lower tax revenues if large RIFs occur and mitigation is not provided.
The GAO study does not provide immediate financial or service relief, so jurisdictions and displaced workers receive no guaranteed short-term assistance from this bill alone.
Displaced federal workers may still face joblessness, relocation costs, and other personal economic harms if recommended supports are insufficient or delayed.
Based on analysis of 4 sections of legislative text.
Requires the Government Accountability Office (GAO) to study how federal reductions in force (RIFs) affect State and local government budgets, services, and economies, and to deliver findings and recommendations to Congress and publish the report within 18 months of enactment. The study must examine spending changes (unemployment insurance, Medicaid, workforce retraining, housing/income assistance), tax revenue impacts, regional economic effects, administrative challenges, historical case studies, and mitigation strategies, and must consult State and local officials and relevant Federal agencies.