The Emergency Relief for Federal Workers Act of 2025 provides financial assistance to federal employees affected by government shutdowns lasting at least two weeks. The bill allows affected workers to withdraw up to $30,000 from their Thrift Savings Plan (the federal employee retirement account) without incurring the standard 10 percent early withdrawal penalty, and permits them to repay these withdrawals within 120 days of the shutdown ending to restore the funds to their retirement accounts. The legislation also makes it easier for furloughed or unpaid employees to take new loans from their retirement savings accounts and removes tax penalties if employees miss loan payments during a shutdown period. The $30,000 limit will be adjusted annually for inflation after 2025. These protections became effective October 1, 2025, and apply to any ongoing or future shutdowns.
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