Fiscal Harms of Federal Firings Act

Identification of Support Strategies: The study seeks to find strategies used by governments to mitigate impacts and may include recommendations for statutory or administrative changes to support displaced employees and impacted governments (Section 3(b)(7); Section 3(d)(2)(A)(ii)).

Development of Policy Options: The report may provide Congress with policy options to consider, such as potential Federal assistance or coordination mechanisms to help those affected by RIFs (Section 3(d)(2)(D)).

Increased Transparency: By requiring the report to be made publicly available on the Government Accountability Office website, the findings regarding how workforce reductions affect local economies and services will be accessible to the public (Section 3(d)(3)).

Increased Demand for Social Services: Federal reductions in force may lead to an increased demand for State-administered services such as unemployment insurance, Medicaid, workforce retraining, and housing assistance (Section 2(2)).

Economic and Tax Revenue Reductions: Workforce reductions can reduce economic activity and tax revenues—including income, sales, and property taxes—in regions that have a high concentration of Federal employees (Section 2(3); Section 3(b)(2)).

Fiscal Burden on Local Governments: There is a risk that States and local governments may struggle with the fiscal capacity to absorb the short- and long-term impacts of large-scale Federal workforce reductions (Section 2(4)).