119th (2025–2027)
H.R. 5674
The Emergency Relief for Federal Workers Act of 2025 provides financial relief to federal employees who are furloughed or working without pay during government funding lapses (shutdowns) lasting at least two weeks. The bill waives the standard 10 percent early withdrawal penalty on up to $30,000 withdrawn from the Thrift Savings Plan during a qualified lapse in appropriations, and allows employees to recontribute that money back within 120 days of the shutdown ending without tax consequences. Additionally, the legislation permits federal workers to take hardship withdrawals and loans from their retirement accounts during shutdowns without the usual restrictions, and allows missed loan payments during the shutdown to be deducted from an employee's regular pay once appropriations resume without triggering tax penalties. The $30,000 withdrawal limit will adjust annually for inflation after 2025, and the provisions apply to any distributions made after September 30, 2025.