WASHINGTON – U.S. Sen. Mark R. Warner (D-Va.) joined his colleagues in introducing the Fiscal Harms of Federal Firings Act, legislation that 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.  

“The Trump administration’s reckless large-scale firing of federal workers has created serious harmful effects on the economy at federal, state, and local levels, and this legislation is critical in determining the full breadth of those impacts,” said Sen. Warner. “As Trump and his cronies continue to target federal workers and use them as political bargaining chips, I will continue working with my colleagues to defend our country’s dedicated civil service.” 

This bill comes a year after the first waves of large-scale federal firings–many 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. 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 
• Directs the Comptroller General to submit recommendations to Congress with policy options and best practices to mitigate negative fiscal and economic effects. 

This bill is also sponsored by U.S. Sens. Angela Alsobrooks (D-MD), Chris Van Hollen (D-MD), and Alex Padilla (D-CA). U.S. Rep. April McClain Delaney (D-MD-06) and Suhas Subramanyam (D-VA-10) introduced the legislation in the United States House of Representatives. 

“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 Sen. Alsobrooks. 

“The Trump Administration’s relentless attacks on federal employees are not only wreaking havoc on these workers and the essential public services they deliver but also straining local services and resources for our communities. This legislation will provide a clearer picture of the harm that this Administration has done – while giving Congress more tools to mitigate the damage, defend our merit-based civil service, and protect vital services Americans depend on,” said Sen. Van Hollen.  

“Donald Trump has wreaked havoc on our federal workforce, illegally firing tens of thousands of civil servants and driving many more to leave out of fear,” said Sen. Padilla. “Federal workers in California and across our country provide essential services every day, from taking care of our veterans, to building our infrastructure, to keeping our workplaces safe, and so much more. Americans deserve a full accounting of the impact of these reckless cuts on our families, neighbors, and communities.” 

“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.” 

The bill was also endorsed by the AFL-CIO, International Association of Machinists and Aerospace Workers, National Federation of Federal Employees, American Federation of State, County and Municipal Employees, and National Treasury Employees Union.  

Read the full bill text here.  

Read more in The Baltimore Sun here.  

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