[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3844 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 3844
To require the Comptroller General of the United States to conduct a
study of the impact of Federal reductions in force on State and local
governments, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 11, 2026
Ms. Alsobrooks (for herself, Mr. Van Hollen, Mr. Warner, and Mr.
Padilla) introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To require the Comptroller General of the United States to conduct a
study of the impact of Federal reductions in force on State and local
governments, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fiscal Harms of Federal Firing
Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Comptroller general.--The term ``Comptroller General''
means the Comptroller General of the United States.
(2) Reduction in force.--The term ``reduction in force''
means--
(A) a reduction in force carried out under
subchapter I of chapter 35 or section 3595 of title 5,
United States Code; or
(B) any other significant downsizing of employees
occupying positions in the civil service, as defined in
section 2101 of title 5, United States Code.
(3) State.--The term ``State'' means each of the several
States, the District of Columbia, and each territory and
possession of the United States.
SEC. 3. FINDINGS.
Congress finds the following:
(1) Reductions in force may--
(A) displace workers, altering where affected
individuals live and work across States and localities;
(B) increase demand for State-administered
services, including unemployment insurance, Medicaid,
workforce retraining, housing assistance, and other
social services; and
(C) reduce economic activity and tax revenues in
regions with high concentrations of Federal employment.
(2) State and local governments vary significantly in their
fiscal capacity to absorb the short- and long-term impacts of
large-scale reductions in force.
(3) As of the date of enactment of this Act, there is no
comprehensive Federal assessment of how reductions in force
affect State and local government budgets, revenues, and
expenditures.
SEC. 4. STUDY OF THE IMPACT OF FEDERAL REDUCTIONS IN FORCE ON STATE AND
LOCAL GOVERNMENT BUDGETS.
(a) In General.--The Comptroller General shall conduct a
comprehensive study on the impacts of reductions in force on the
budgets of State and local governments.
(b) Scope of Study.--The study conducted under subsection (a) shall
examine, at a minimum--
(1) the changes that reductions in force have on State and
local government expenditures relating to--
(A) unemployment insurance;
(B) Medicaid and other health programs;
(C) workforce development and retraining; and
(D) housing and income assistance programs;
(2) the impacts on State and local government tax revenues
as a result of reductions in force, including revenue generated
from income, sales, and property taxes;
(3) the regional economic effects resulting from reductions
in force, including employment shifts and impacts on the
private sector;
(4) the administrative and operational challenges faced by
State and local governments responding to reductions in force;
(5) the differences in impacts that reductions in force
have on State and local governments based on--
(A) the size and scale of a particular reduction in
force;
(B) the geographic concentration of Federal
employees in a particular region; and
(C) State and local government fiscal capacity and
labor market conditions;
(6) historical case studies of significant reductions in
force on State or local governments that were carried out
during the 20-year period preceding the date on which the
Comptroller General of the United States commences the study;
and
(7) strategies used by State and local governments to
mitigate the fiscal and economic impacts of reductions in
force.
(c) Consultation and Data Collection.--
(1) Consultation.--In conducting the study required under
subsection (a), the Comptroller General shall seek to consult
with--
(A) State and local government--
(i) budget officers; and
(ii) workforce and labor agencies;
(B) offices of governors of States;
(C) relevant Federal agencies, including the Office
of Personnel Management and the Department of Labor;
and
(D) economists, labor market experts, and public
finance researchers.
(2) Data sources.--In conducting the study required under
subsection (a), the Comptroller General may use administrative
data, surveys, economic modeling, and publicly available fiscal
and labor statistics.
(d) Report to Congress.--
(1) In general.--Not later than 18 months after the date of
the enactment of this Act, the Comptroller General shall submit
to the Committee on Homeland Security and Governmental Affairs
of the Senate, the Committee on Health, Education, Labor, and
Pensions of the Senate, the Committee on Education and
Workforce of the House of Representatives, and the Committee on
Oversight and Government Reform of the House of Representatives
a report regarding the study conducted under subsection (a).
(2) Contents.--The report required under paragraph (1)
shall include--
(A) findings and analysis from the study conducted
under subsection (a), including--
(i) an analysis of whether each reduction
in force studied improved the efficiency of the
agency that carried out that reduction in
force; and
(ii) any recommendations, including
recommendations for statutory or administrative
changes to provide support for--
(I) individuals displaced by
reductions in force; and
(II) State and local governments
impacted by reductions in force;
(B) an identification of State and local
governments that experienced the greatest fiscal
effects of reductions in force;
(C) the projected short- and long-term budgetary
impacts on State and local governments as a result of
reductions in force; and
(D) policy options for Congress to consider with
respect to the impacts of reductions in force on the
budgets of State and local governments, including
potential Federal assistance, coordination mechanisms,
or advance planning tools.
(3) Public availability.--The Comptroller General shall
make the report submitted under paragraph (1) publicly
available on the website of the Government Accountability
Office.
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