Congresswoman McClain Delaney Introduces New Bill Calling for GAO Study on the State and Local Impacts of Federal Firings

WASHINGTON, D.C. – This week, Congresswoman April McClain Delaney (D-MD) was joined by Congressman Suhas Subramanyam (D-VA) and U.S. Senator for Maryland Angela Alsobrooks to introduce the Fiscal Harms of Federal Firings Act, which would direct the Government Accountability Office (GAO) to conduct a comprehensive study of the financial impacts of the Trump Administration’s mass firings on state and local governments.

This bill comes a year after the first waves of large-scale federal firings–many of which have been contested in court–sent state-administered programs in a scramble, such as unemployment insurance, Medicaid, workforce retraining, housing assistance, and other social services scrambling. The U.S. Office of Personnel Management reported that the federal workforce lost more than 317,000 employees in 2025. It also follows, by just one week, Trump’s latest assault on the federal workforce to implement a ‘Schedule Policy/Career’ category that could result in the stripping of protections and at-will firings of more than 50,000 federal employees.

The legislation would:

• Direct the GAO to conduct a comprehensive study of the fiscal impacts of federal reduction in forces (RIFs) on state budgets;
• Evaluate increased state expenditures for unemployment insurance, health care, workforce development, and housing assistance;
• Assess impacts on state and local tax revenues and regional economic activity;
• Identify states most affected by federal workforce reductions; and
• Direct the Comptroller General to submit recommendations to Congress with policy options and best practices to mitigate negative fiscal and economic effects.

“These firings were reckless and cruel, upending the lives of dedicated public servants, disrupting critical services the American people rely on, and leaving state and community budgets, such as those in Maryland, in deficit,” said Rep. McClain Delaney. “The fight isn’t over. As Congresswoman for a district home to more than 35,000 government workers and active-duty service members, I will continue to push legislation to understand the full impact of these cuts so we can do right by these workers and the state and local governments that stepped up to help.”

"One year after the administration’s sweeping removal of more than 317,000 federal workers, the resulting widespread disruption to our state and local economies continues to be felt, especially in Virginia," said Rep. Subramanyam. "We need to understand the true impact of these layoffs on our communities and budgets in order to fully recover and build a future where the contributions of federal workers and contractors to our economy are valued and protected."

“This Administration has spent its first year driving up costs of goods, increasing health care costs, and spending our taxpayer dollars on a goon squad of masked men who are killing American citizens. But what’s the real threat in their eyes? Our patriotic civil servants. It’s a cruel lie meant to cause division and distract the American people from the awful things Republicans are doing. That’s why I’m proud to work with Rep. McClain Delaney on the Fiscal Harms of Federal Firings Act. Our legislation will force the Administration to come clean about the financial impacts of this Administration’s mass firings on state and local governments,” said Senator Alsobrooks.

The bill was also endorsed by the National Federation of Federal Employees (NFFE), the National Treasury Employees Union (NTEU), the American Federation of Government Employees (AFGE), and the International Federation of Professional and Technical Engineers (IFPTE).

“The Trump Administration has led a widespread crusade against the federal workforce that has been devastating not only for government employees, but also the states they service and reside in,” said NFFE National President Randy Erwin. “More than 80 percent of federal employees live outside of the Washington, DC area, and reckless job cuts have caused significant financial harm to communities across the country. It is critical that Congress understands the negative consequences of mass terminations at the federal level, which is why NFFE supports the Fiscal Harms of Federal Firings Act. Thank you to Representatives McClain Delaney and Subramanyam, and Senator Alsobrooks for supporting federal workers and protecting public services.”

"AFGE strongly supports Rep. McClain Delaney's Fiscal Harms of Federal Firings Act, a common-sense step toward transparency and accountability, ensuring Congress and the American people have real data on the economic damage federal job cuts cause,” said AFGE National President Everett Kelley. “Federal workers are not line items on a spreadsheet — they are the backbone of our communities and our economy, and when reductions in force are justified as cost-saving measures, the broader fiscal consequences on states and local governments are too often ignored."

"Federal workers know well that this Administration’s efforts to dismantle the federal workforce have been costly and resulted in the loss of highly capable and dedicated civil servants. The impacts stretch beyond the damage to services, programs, and innovation, and affect communities and local economies throughout the United States,” said IFPTE President Matthew Biggs. “Congress must work to repair the damage, rebuild, and strengthen the civil service, and a necessary step towards that effort is to measure the economic harm created by the Administration's reckless mass firings of federal workers. We thank Congresswoman McClain Delaney for introducing the Fiscal Harms of Federal Firings Act and ask Members of Congress from both sides of the aisle to cosponsor this legislation.”

House cosponsors include: Elfreth (D-MD), Ivey (D-MD), Moulton (D-MA), Norton (D-DC), Olszewski (D-MD), Subramanyam (D-VA), Vindman (D-VA), and Walkinshaw (D-VA).

Senate cosponsors include: Van Hollen (D-MD), Warner (D-VA), and Padilla (D-CA).

View the House bill text. View the Senate bill text.

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For updates, follow Rep. McClain Delaney at @RepAprilDelaney.

Congresswoman April McClain Delaney was elected in 2024 to serve Maryland’s 6th Congressional District, which encompasses all or part of Montgomery, Frederick, Washington, Allegany and Garrett Counties. In Congress, McClain Delaney is focused on improving US competitiveness and innovation, protecting our natural environment and championing policies that represent the values and priorities of Maryland’s 6th District.