Emergency Relief for Federal Workers Act of 2025

This bill would change tax and retirement savings rules for federal employees who are furloughed or working without pay during a government shutdown lasting at least 2 weeks. It would waive the 10 percent early-withdrawal tax on up to $30,000 (adjusted for inflation) taken from the Thrift Savings Plan during the shutdown. It would allow these employees to make hardship withdrawals without a limit on the number, and to pay the money back into the plan within 120 days after the shutdown ends. It would allow plan loans during any shutdown. It would also keep missed loan payments during a shutdown from being treated as taxable income, with the missed amounts taken from the employee's back pay.

Full text and official record on Congress.gov

Sponsors

• Tim Kaine Democrat sponsor
• 18 cosponsors