The Fiscal Harms of Federal Firing Act directs the Comptroller General to conduct a comprehensive study examining how federal employee layoffs affect state and local governments. The study will analyze changes to state and local spending on unemployment benefits, Medicaid, workforce retraining, and housing assistance; impacts on tax revenues; regional economic effects; and differences in how various communities are affected based on the size of layoffs and local fiscal capacity. The Comptroller General will consult with state budget officials, federal agencies like the Office of Personnel Management, and economic experts, using administrative data and surveys to inform the research. Within 18 months of enactment, the Comptroller General must submit a detailed report to Congress that includes findings about whether layoffs improved agency efficiency, identifies the hardest-hit communities, projects budgetary impacts, and recommends policy options such as federal assistance programs or planning tools to help states and localities cope with these effects.
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