Fiscal Harms of Federal Firings Act

HR 7507, the Fiscal Harms of Federal Firings Act, mandates the Government Accountability Office (GAO) to study how federal workforce reductions (RIFs) impact state and local government budgets. The study will examine increased costs for services like unemployment insurance and Medicaid, reduced tax revenues, regional economic shifts, and varying fiscal challenges across states. It requires the GAO to consult with state officials, economists, and federal agencies, then submit a public report to Congress within 18 months detailing findings, historical case studies, and policy options. This bill does not change federal policy but aims to provide data for future decisions about RIFs' fiscal effects.