The Fiscal Harms of Federal Firings Act directs the Comptroller General to conduct a comprehensive study examining how federal workforce reductions (known as RIFs) affect state and local government budgets and economies. The study will analyze increased demands on state services like unemployment insurance and Medicaid, lost tax revenues, regional economic impacts, and how different states are equipped to handle these disruptions based on their financial capacity and federal employment concentration. The Government Accountability Office must submit its findings and policy recommendations to Congress within 18 months, identifying which states and localities face the greatest fiscal harm and proposing potential federal assistance or coordination mechanisms. The bill affects state and local governments across the country, particularly those with significant federal employment, and requires no specific funding amount though it authorizes the GAO to conduct the research using existing administrative data and economic modeling.
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