I hope everything resolves and they decide not to cut his position!!
I was in the exact same position a few months ago with my dad, he works in our city government and they were about to lay off people. Thankfully he wasn't laid off then but you never know there could always be more lay offs so we are still on an edge...
We were going to move too if my dad had lost his job. My parents talked about it but we were going to move to Bulgaria which would have been a crazy thing for me. Well I always could have stayed in the US but with no job and all that wouldn't have worked.
Anyways I hope this is just a false alarm for your family