HR7507-119

In Committee

Fiscal Harms of Federal Firings Act

119th Congress Introduced Feb 11, 2026

Summary

What This Bill Does

This bill responds to federal reductions in force by requiring a comprehensive GAO study of downstream fiscal effects on states and local governments. The study must examine added expenditures for unemployment insurance, Medicaid, workforce development, housing assistance, income assistance, and other social services; changes in income, sales, and property tax revenue; regional employment and private-sector effects; operational challenges for state and local governments; historical case studies from the previous 20 years; and mitigation strategies.

Who Benefits and How

State budget agencies, local governments, displaced federal workers, congressional oversight committees, and researchers benefit because the GAO report would identify where RIFs shift costs, reduce tax bases, and require policy responses. The public also gains a GAO website report comparing short-term and long-term budget impacts.

Who Bears the Burden and How

The Government Accountability Office must conduct the study, consult state and local budget officers, governors offices, workforce agencies, OPM, the Department of Labor, economists, labor-market experts, and public-finance researchers, then report within 18 months. Consulted agencies and officials must provide data or expertise, while federal agencies responsible for RIFs may face scrutiny over whether downsizing improved efficiency.

Key Provisions

  • Directs GAO to study how federal reductions in force affect state and local expenditures, tax revenues, regional economies, and administrative operations.
  • Requires consultation with state budget officers, governors offices, workforce agencies, OPM, the Department of Labor, economists, labor-market experts, and public-finance researchers.
  • Requires an 18-month report to House and Senate education, labor, oversight, and homeland-security committees.
  • Requires the report to identify heavily affected governments, projected budget impacts, recommendations, policy options, and whether studied RIFs improved agency efficiency.

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

Requires the Government Accountability Office to study how federal reductions in force affect state and local budgets, public-service costs, tax revenues, and regional economies.

Key Policy Areas

Government, Labor, State & Local Government

Primary Purpose

Requires the Government Accountability Office to study how federal reductions in force affect state and local budgets, public-service costs, tax revenues, and regional economies.

Policy Domains

Government Labor State & Local Government

Substantive provisions

Identified Gains
  • State budget agencies
  • Local governments
  • Displaced federal workers
  • Congressional oversight committees
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
Local governments: ,
State budget agencies: ,
Displaced federal workers: ,
Congressional oversight committees: ,
Identified Costs
  • Government Accountability Office
  • Office of Personnel Management
  • Department of Labor
  • State workforce agencies
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
Department of Labor: ,
State workforce agencies: ,
Office of Personnel Management: ,
Government Accountability Office: ,

Legislative Progress

In Committee
Introduced Committee Passed
Feb 11, 2026

Referred to the House Committee on Oversight and Government Reform.

Feb 11, 2026

Introduced in House

Feb 11, 2026

Mrs. McClain Delaney (for herself, Mr. Subramanyam, Ms. Norton, Mr. …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

State & Local Government
4 mentions across 2 clauses
+4 positive

Local governments, State budget agencies

Government
3 mentions across 1 clause
-3 negative

Department of Labor, Government Accountability Office, Office of Personnel Management

Labor
1 mention across 1 clause
+1 positive

Displaced federal workers

2/3
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Government Labor State & Local Government
Actor Mappings
"rif"
→ Federal reduction in force under title 5 or other significant federal civilian employee downsizing
"comptroller_general"
→ Comptroller General of the United States

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology