This bill requires the Government Accountability Office (GAO)—an independent watchdog agency—to study how federal employee layoffs affect state and local governments. When the federal government cuts jobs, it creates ripple effects: laid-off workers may move away, reducing local tax revenue; they may need unemployment benefits and other social services that states have to pay for; and local economies can suffer when federal spending decreases. The bill recognizes that different states and cities are affected differently depending on how many federal employees they have and their financial resources. Right now, there's no comprehensive look at these impacts. The GAO will examine how layoffs affect state and local spending on unemployment insurance, Medicaid, job training, and housing assistance; how they impact tax revenues; what economic effects ripple through communities; and what strategies states have used to cope. The study will look at past layoffs from the last 20 years and will consult with state officials, federal agencies, and economic experts. Within 18 months, the GAO must report back to Congress with findings, identify which states were hit hardest, project future budget impacts, and suggest policy options—including possible federal assistance or planning tools—that Congress could consider.