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119-s-2966119th CongressWALLET

Emergency Relief for Federal Workers Act of 2025

Sponsored By: Senator Kaine, Tim [D-VA]

Introduced

Summary

Emergency financial relief for federal workers during a qualified lapse in appropriations. This bill would let affected federal employees use the Thrift Savings Plan (TSP) for penalty-free withdrawals, expanded in-service withdrawals, and loans when a funding lapse lasts at least two weeks.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

More TSP withdrawals for furloughed workers

If enacted, federal employees furloughed or working without pay during a lapse would be able to take in-service hardship and age-based TSP withdrawals during the lapse. The bill would waive the 10% early-withdrawal tax for up to $30,000 in total withdrawals per qualified lapse. The $30,000 cap would be inflation-adjusted for tax years after 2025 and rounded down to the next $100. You could recontribute up to the lesser of your withdrawals or $30,000 within 120 days after the lapse ends; timely recontributions would be treated like trustee-to-trustee transfers. The waiver and related rules would apply to distributions made after September 30, 2025, and a qualified lapse is a continuous lapse of at least two weeks.

TSP loans and missed-payment protection

If enacted, the TSP Board would be able to make loans to employees furloughed or working without pay because of a lapse, regardless of how long the lapse lasts. The Board would require that any loan payments missed during the lapse be deducted and withheld from pay provided for that lapse period. The bill would also add a tax rule saying a loan (or part) would not be treated as a taxable distribution solely because a payment due during the lapse was missed, for missed payments with due dates after September 30, 2025.

Agencies must send furloughed employee lists

If enacted, the TSP Executive Director could require agencies affected by a qualified lapse to submit a list of employees who will be furloughed or work without pay. The list would include each employee's name and Social Security number and would be submitted as part of agency shutdown procedures.

Sponsors & CoSponsors

Sponsor

Kaine, Tim [D-VA]

VA • D

Cosponsors

  • Sen. Cortez Masto, Catherine [D-NV]

    NV • D

    Sponsored 10/1/2025

  • Sen. Duckworth, Tammy [D-IL]

    IL • D

    Sponsored 10/1/2025

  • Sen. Warner, Mark R. [D-VA]

    VA • D

    Sponsored 10/1/2025

  • Sen. Alsobrooks, Angela D. [D-MD]

    MD • D

    Sponsored 10/1/2025

  • Sen. Wyden, Ron [D-OR]

    OR • D

    Sponsored 10/1/2025

  • Sen. Markey, Edward J. [D-MA]

    MA • D

    Sponsored 10/1/2025

  • Sen. Shaheen, Jeanne [D-NH]

    NH • D

    Sponsored 10/1/2025

  • Sen. Hickenlooper, John W. [D-CO]

    CO • D

    Sponsored 10/1/2025

  • Sen. Schatz, Brian [D-HI]

    HI • D

    Sponsored 10/1/2025

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 10/1/2025

  • Sen. Hirono, Mazie K. [D-HI]

    HI • D

    Sponsored 10/1/2025

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 10/1/2025

  • Sen. Coons, Christopher A. [D-DE]

    DE • D

    Sponsored 10/1/2025

  • Sen. Durbin, Richard J. [D-IL]

    IL • D

    Sponsored 10/1/2025

  • Sen. Padilla, Alex [D-CA]

    CA • D

    Sponsored 10/1/2025

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 10/1/2025

  • Sen. Rosen, Jacky [D-NV]

    NV • D

    Sponsored 10/1/2025

  • Sen. Bennet, Michael F. [D-CO]

    CO • D

    Sponsored 10/22/2025

Roll Call Votes

No roll call votes available for this bill.

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