# 119-s-2964: Emergency Relief for Federal Contractors Act of 2025

119-s-2964, Emergency Relief for Federal Contractors Act of 2025, is a 119th Congress bill sponsored by Sen. Cortez Masto, Catherine [D-NV] (D-NV); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-s-2964
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-2964
- Congress: 119
- Title: Emergency Relief for Federal Contractors Act of 2025
- Status: introduced
- Introduced: 2025-10-01
- Sponsor: Sen. Cortez Masto, Catherine [D-NV] (D-NV)
- Cosponsors: 14
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**Penalty-free retirement withdrawals during federal shutdowns for affected workers.** The bill would let certain workers take up to $30,000 from eligible retirement plans without the 10% early-withdrawal tax, permit repayment to a retirement plan or IRA within 3 years, and allow taxpayers to spread the income over three tax years. - Federal contractors, employees of federal grantees with reduced pay, and certain District of Columbia employees could tap retirement accounts during a qualifying shutdown. The cap is $30,000 per individual per year and is indexed for inflation after 2025. - Recipients would include the distribution in income ratably over 3 tax years unless they opt out. They may repay the amount to an eligible retirement plan or IRA within 3 years to treat it as a rollover under specified Internal Revenue Code rules. - Plan sponsors can designate distributions as shutdown distributions without automatically causing plan violations unless total employer-wide payouts to an individual exceed the cap. The bill also sets special rollover and withholding rules and treats these distributions as meeting several plan distribution requirements.

## Cosponsors (14)

- Sen. Kaine, Tim [D-VA] (D-VA), 2025-10-01T00:00:00.000Z
- Sen. Wyden, Ron [D-OR] (D-OR), 2025-10-01T00:00:00.000Z
- Sen. Alsobrooks, Angela D. [D-MD] (D-MD), 2025-10-01T00:00:00.000Z
- Sen. Klobuchar, Amy [D-MN] (D-MN), 2025-10-01T00:00:00.000Z
- Sen. Markey, Edward J. [D-MA] (D-MA), 2025-10-01T00:00:00.000Z
- Sen. Shaheen, Jeanne [D-NH] (D-NH), 2025-10-01T00:00:00.000Z
- Sen. Van Hollen, Chris [D-MD] (D-MD), 2025-10-01T00:00:00.000Z
- Sen. Warner, Mark R. [D-VA] (D-VA), 2025-10-01T00:00:00.000Z
- Sen. Blumenthal, Richard [D-CT] (D-CT), 2025-10-01T00:00:00.000Z
- Sen. Rosen, Jacky [D-NV] (D-NV), 2025-10-01T00:00:00.000Z
- Sen. Hirono, Mazie K. [D-HI] (D-HI), 2025-10-01T00:00:00.000Z
- Sen. Durbin, Richard J. [D-IL] (D-IL), 2025-10-01T00:00:00.000Z
- Sen. Padilla, Alex [D-CA] (D-CA), 2025-10-01T00:00:00.000Z
- Sen. Booker, Cory A. [D-NJ] (D-NJ), 2025-10-01T00:00:00.000Z

## Provisions PRIA read

- Tax relief for shutdown-affected workers: benefit, medium. If enacted, this bill would let certain workers take retirement payouts during a Federal funding lapse without the 10% early-withdrawal penalty. You would be able to spread the payout's income over three years or report it all in the year received. The special treatment would be limited to $30,000…

## Related bills

- 119-s-5066: Health Equity and Accountability Act of 2026
- 119-s-51: Washington, D.C. Admission Act
- 119-s-5108: Right to IVF Act of 2026
- 119-s-1503: Equality Act
- 119-s-2150: Women’s Health Protection Act of 2025
- 119-s-422: Right to Contraception Act

## Sources
- [119-s-2964 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/2964)

## Related
- [119-s-5066: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-s-5066)
- [119-s-51: Washington, D.C. Admission Act](https://policyrisk.com/legislation/119-s-51)
- [119-s-5108: Right to IVF Act of 2026](https://policyrisk.com/legislation/119-s-5108)
- [119-s-1503: Equality Act](https://policyrisk.com/legislation/119-s-1503)
- [119-s-2150: Women’s Health Protection Act of 2025](https://policyrisk.com/legislation/119-s-2150)
- [119-s-422: Right to Contraception Act](https://policyrisk.com/legislation/119-s-422)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-2964 (as of 2026-04-21).