Sponsors (14)
The bill provides states, localities, and Congress with actionable data and recommendations to plan for and mitigate the effects of federal layoffs and help displaced workers, at the cost of added administrative work and the potential for increased federal and local fiscal burdens and negative effects on identified communities.
State and local governments will get clearer, evidence-based assessments of how federal reductions in force (RIFs) affect their budgets, enabling better fiscal planning, mitigation, and coordination with the Federal government.
Displaced federal workers and affected communities could benefit from recommended workforce development, retraining, and targeted economic supports that improve reemployment chances and help states plan for increased demand for unemployment insurance, Medicaid, and housing assistance.
Congress will receive policy options and statutory/administrative recommendations to better coordinate Federal assistance, potentially improving relief and targeted responses for communities harmed by concentrated federal layoffs.
Taxpayers could face increased federal costs if the assessment's findings prompt Congress to adopt new assistance programs, mandates, or additional spending to mitigate RIF impacts.
States and localities with limited fiscal capacity may face pressure to cut public services or raise local taxes to offset RIF-related budget strains, harming low-income residents who rely on those services.
Conducting the GAO study and assessments will incur administrative costs and require staff resources, which must be funded from GAO's budget or new appropriations and could divert resources from other priorities.
Based on analysis of 3 sections of legislative text.
Directs GAO to study and report within 18 months on how federal reductions in force affect state and local budgets, revenues, services, and regional economies and to recommend mitigation options.
Introduced February 11, 2026 by April McClain Delaney · Last progress February 11, 2026
Directs the Government Accountability Office (GAO) to conduct a comprehensive study of how federal reductions in force (RIFs) affect State and local government budgets, revenues, programs, and regional economies, and to deliver a public report to Congress within 18 months. The study must analyze changes in spending (unemployment insurance, Medicaid/health programs, workforce retraining, housing and income assistance, etc.), tax revenue effects, administrative burdens, regional economic impacts, historical case studies from the prior 20 years, and mitigation strategies, and must include findings and recommendations for statutory or administrative action. The GAO must consult State and local officials, relevant federal agencies (including OPM and DOL), and experts; may use administrative data, surveys, and modeling; identify the most-affected States and localities; assess whether each RIF improved agency efficiency; and publish the report on its website.