Sponsors (14)
Introduced February 11, 2026 by April McClain Delaney · Last progress February 11, 2026
The bill directs a GAO study that improves transparency and helps states plan and may surface supports for displaced federal workers, but it provides no immediate funding and could prompt policy or political responses that constrain agency workforce flexibility or lead to increased future taxpayer costs while using GAO resources.
State and local governments will receive detailed, evidence-based GAO analysis about the fiscal and programmatic impacts of federal RIFs, enabling better budgeting and planning for services like unemployment insurance, Medicaid, and housing assistance.
Federal employees displaced by RIFs will have their economic dislocation formally recognized and may benefit from GAO-recommended statutory or administrative supports, coordination tools, or retraining options.
Taxpayers, Congress, and the public gain greater transparency through a publicly available GAO report that highlights the fiscal effects of workforce downsizing and can surface gaps in federal-state coordination for future policy fixes.
Federal employees, state and local governments will learn about harms and costs but the study itself does not provide immediate funding or relief, leaving affected workers and programs without guaranteed assistance.
Findings that recommend new federal assistance or statutory changes could lead to future federal spending or obligations that increase costs for taxpayers.
Publicizing harms and prompting political pressure may reduce agency flexibility to pursue workforce reductions (RIFs), which could be viewed by some taxpayers or officials as limiting cost-saving options.
Based on analysis of 3 sections of legislative text.
Requires the Government Accountability Office (GAO) to do a comprehensive, 18-month study of how Federal reductions in force (RIFs) affect State and local government budgets, revenues, and services. The GAO must analyze spending and revenue changes (unemployment insurance, Medicaid/health programs, workforce retraining, housing/income assistance, tax receipts), regional economic effects, administrative strains, variation by RIF size and concentration, historical cases from the last 20 years, and mitigation strategies, then deliver findings, recommendations, and policy options to Congress and publish the report publicly. The study must consult relevant Federal, State, and local entities, may use administrative data, surveys, and modeling, and identify jurisdictions most affected and possible Federal assistance or coordination tools to support displaced employees and impacted communities.