Bill · H.R. 5674· House(119-HR-5674)

Emergency Relief for Federal Workers Act of 2025

Age: 76 years

Virginia

Introduced: 10/3/2025
Last activity: 10/3/2025 — Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sponsored by: Donald Beyer
Cosponsors: - 38 - 0

Taxation

Introduced
In Committee

What this bill would do

The ``Emergency Relief for Federal Workers Act of 2025'' aims to amend the Internal Revenue Code of 1986 and other laws to assist federal employees during government shutdowns. It focuses on waiving certain penalties for those receiving distributions from the Thrift Savings Plan during a qualified lapse in appropriations. The bill provides provisions for hardship withdrawals and age-based withdrawals for employees who are furloughed or working without pay. It also addresses loan rules to ensure missed payments during a shutdown are not treated as taxable distributions. Additionally, the act allows for certain contributions back into the Thrift Savings Fund following these withdrawals.

Yes· 3 of 5

Would households on low incomes be better off under this?+5
The bill provides emergency access to retirement funds through hardship withdrawals to assist during pay lapses.
Would middle-income households be better off under this?+5
Federal employees can access up to $30,000 from their retirement accounts without penalty to manage financial hardships during a shutdown.
Does this cut taxes for middle-income families?+5
The bill waives the 10-percent additional tax on certain hardship distributions from the Thrift Savings Plan for federal employees during a shutdown.