Fiscal Harms of Federal Firing Act

Key Points

• This bill asks the government's top auditor to study what happens to states and cities when the federal government cuts a large number of jobs. It focuses on how these layoffs change where people live and work and how they affect local economies.
• When federal workers lose their jobs, they often need more help from state programs like unemployment insurance, Medicaid, and housing assistance. At the same time, the state loses tax money because those workers aren't spending as much or paying income taxes.
• The study will look back at the last 20 years of federal job cuts to see which areas were hit the hardest. It will also look at how these cuts affect private businesses in the area and whether the layoffs actually made the government more efficient.
• A final report would be due in 18 months. This report would give Congress ideas on how to better support workers who lose their jobs and how to help local governments manage the financial strain of federal downsizing.

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