119-hr-5674119th CongressWALLET

Emergency Relief for Federal Workers Act of 2025

Sponsored By: Representative Beyer, Donald S. [D-VA-8]

Introduced

Summary

Provides temporary shutdown relief by letting furloughed or unpaid federal workers tap their Thrift Savings Plan with reduced tax penalties and special loan rules during a qualified lapse. It sets a per-shutdown dollar cap, creates in-lapse withdrawal and rollover mechanics, and protects missed loan payments from becoming taxable in many cases.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

TSP withdrawals and tax relief in shutdowns

If enacted, federal employees on furlough or working without pay during a funding lapse of at least two weeks could take age-based or hardship TSP withdrawals during the lapse. The Board would not limit the number of hardship withdrawals, but the total could not exceed $30,000 per lapse, adjusted for inflation. You would not owe the 10% early withdrawal tax on up to $30,000 taken during the lapse; this applies to distributions made after September 30, 2025. For years after 2025, the cap would rise with inflation and be rounded down to the next $100. You could put money back into the TSP by 120 days after the lapse ends, up to the lesser of what you withdrew or $30,000, and those recontributions would be treated like a direct rollover for tax purposes.

TSP loans protected during shutdowns

If enacted, the TSP would have to allow loans to furloughed or unpaid employees during a funding lapse, regardless of how long it lasts. Any loan payment you missed during the lapse would be taken from pay you receive for that period. A missed payment due to the shutdown would not make your loan taxable by itself. This protection would apply to missed payments with due dates after September 30, 2025.

Sponsors & CoSponsors

Sponsor

Beyer, Donald S. [D-VA-8]

VA • D

Cosponsors

  • Rep. Elfreth, Sarah [D-MD-3]

    MD • D

    Sponsored 10/3/2025

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 10/3/2025

  • Rep. Subramanyam, Suhas [D-VA-10]

    VA • D

    Sponsored 10/3/2025

  • Rep. McClellan, Jennifer L. [D-VA-4]

    VA • D

    Sponsored 10/3/2025

  • Rep. Walkinshaw, James R. [D-VA-11]

    VA • D

    Sponsored 10/3/2025

  • Rep. Moulton, Seth [D-MA-6]

    MA • D

    Sponsored 10/3/2025

  • Rep. Velázquez, Nydia M. [D-NY-7]

    NY • D

    Sponsored 10/3/2025

  • Rep. Whitesides, George [D-CA-27]

    CA • D

    Sponsored 10/3/2025

  • Rep. Jackson, Jonathan L. [D-IL-1]

    IL • D

    Sponsored 10/3/2025

  • Rep. Nadler, Jerrold [D-NY-12]

    NY • D

    Sponsored 10/3/2025

  • Rep. McIver, LaMonica [D-NJ-10]

    NJ • D

    Sponsored 10/3/2025

  • Rep. Watson Coleman, Bonnie [D-NJ-12]

    NJ • D

    Sponsored 10/3/2025

  • Rep. Carter, Troy A. [D-LA-2]

    LA • D

    Sponsored 10/3/2025

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 10/3/2025

  • Rep. Johnson, Henry C. "Hank" [D-GA-4]

    GA • D

    Sponsored 10/3/2025

  • Rep. Schneider, Bradley Scott [D-IL-10]

    IL • D

    Sponsored 10/3/2025

  • Rep. Goldman, Daniel S. [D-NY-10]

    NY • D

    Sponsored 10/3/2025

  • Rep. Frankel, Lois [D-FL-22]

    FL • D

    Sponsored 10/3/2025

  • Rep. Moore, Gwen [D-WI-4]

    WI • D

    Sponsored 10/3/2025

  • Rep. Thanedar, Shri [D-MI-13]

    MI • D

    Sponsored 10/3/2025

  • Rep. Costa, Jim [D-CA-21]

    CA • D

    Sponsored 10/3/2025

  • Rep. McClain Delaney, April [D-MD-6]

    MD • D

    Sponsored 10/3/2025

  • Rep. Lieu, Ted [D-CA-36]

    CA • D

    Sponsored 10/6/2025

  • Rep. Sewell, Terri A. [D-AL-7]

    AL • D

    Sponsored 10/6/2025

  • Rep. Bell, Wesley [D-MO-1]

    MO • D

    Sponsored 10/8/2025

  • Rep. Swalwell, Eric [D-CA-14]

    CA • D

    Sponsored 10/8/2025

  • Rep. Beatty, Joyce [D-OH-3]

    OH • D

    Sponsored 10/8/2025

  • Rep. Huffman, Jared [D-CA-2]

    CA • D

    Sponsored 10/8/2025

  • Rep. Soto, Darren [D-FL-9]

    FL • D

    Sponsored 10/8/2025

  • Rep. Davids, Sharice [D-KS-3]

    KS • D

    Sponsored 10/8/2025

  • Rep. Pou, Nellie [D-NJ-9]

    NJ • D

    Sponsored 10/10/2025

  • Rep. Sánchez, Linda T. [D-CA-38]

    CA • D

    Sponsored 10/14/2025

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 10/14/2025

  • Rep. Randall, Emily [D-WA-6]

    WA • D

    Sponsored 10/14/2025

  • Rep. Kelly, Robin L. [D-IL-2]

    IL • D

    Sponsored 10/17/2025

  • Rep. DeGette, Diana [D-CO-1]

    CO • D

    Sponsored 10/24/2025

  • Rep. Williams, Nikema [D-GA-5]

    GA • D

    Sponsored 10/28/2025

  • Rep. Chu, Judy [D-CA-28]

    CA • D

    Sponsored 11/4/2025

Roll Call Votes

No roll call votes available for this bill.

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