S2982119th CongressWALLET

Federal Employees Civil Relief Act

Sponsored By: Senator Brian Schatz

Introduced

Summary

Pauses many civil and financial obligations for federal workers and contractors during government shutdowns and debt‑limit breaches. It covers the shutdown and the 30 days after and lets affected workers seek stays or adjustments to evictions, foreclosures, collections, fines, taxes, student loans, and insurance deadlines.

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  • Federal workers and contractors: Lets furloughed or unpaid workers request temporary stays or postponements of rent, mortgage, tax, fine, insurance, student loan, and other civil payments when their ability to pay was materially affected.
  • Housing providers and lenders: Prohibits evictions, foreclosures, sales, or seizures tied to pre‑shutdown mortgages without a court order during the covered period and allows courts to stay eviction or adjust leases for up to 30 days. Violations can trigger misdemeanor penalties and civil fines up to $55,000 for a first violation and $110,000 for later violations.
  • Student loans, taxes, and insurance: Pauses principal payments and stops interest from accruing on covered student loans during the covered period. Defers collection of federal income tax due during the shutdown for up to 90 days after the shutdown with no interest or penalties during the deferment, and prevents lapse of existing health, life, disability, and motor vehicle insurance for nonpayment.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 7 benefits, 0 costs, 0 mixed.

Housing and foreclosure pause for workers

If enacted, landlords and secured creditors generally could not evict, foreclose, sell, or seize a federal worker's primary residence during the covered period without a prior court order. Courts would have to pause eviction or distress proceedings for 30 days (or a different period if justice requires). Sales, foreclosures, and lien enforcement that began before the shutdown could not proceed during the covered period without court authorization. Violators could face criminal penalties.

Student loan pause for federal workers

If enacted, federal workers furloughed or required to work without pay would not have to pay covered student loan installments during the covered period. Interest would not accrue on those loans while the pause lasts. Lenders could not place payments due in that time into default or send loans to collections without a court order. Knowing violations could carry criminal penalties.

Who gets protections during shutdowns

If enacted, a "covered period" would run from a shutdown start through 30 days after it ends. A "shutdown" would mean a funding lapse over 24 hours or when the U.S. hits the legal debt limit. The bill would treat contractor employees as federal workers for these protections. The Act would apply across the United States and territories but would not cover criminal cases or child support.

Court stays to pause bills and debts

If enacted, furloughed federal workers or those working without pay could ask a court to temporarily stay or reduce payments due during the shutdown. Covered items include rent, mortgages, taxes, fines, insurance premiums, and other civil obligations. Applying for or receiving relief alone could not be used as a reason to deny credit or insurance. Dependents could seek the same help if they show they were materially affected.

No lapse on key insurance for workers

If enacted, health, life, disability, and car insurance policies a federal worker had before a shutdown would not lapse, terminate, or be forfeited for missed premiums during the covered period. These protections apply to premiums or interest due during the covered period and do not require a court order.

Delay of income tax collection for workers

If enacted, federal income tax due during a shutdown could be deferred up to 90 days after the shutdown ends if your ability to pay was materially affected. You would need to notify the IRS. No interest or penalties would accrue while the tax is deferred. The deferral would not apply to the tax under section 3101.

Enforcement and private lawsuits for violations

If enacted, the Attorney General could sue for repeated or important violations. Courts could order money damages and penalties. Individuals harmed after enactment could also bring private lawsuits and recover costs and fees.

Sponsors & CoSponsors

Sponsor

Brian Schatz

HI • D

Cosponsors

  • Charles Schumer

    NY • D

    Sponsored 10/7/2025

  • Richard Durbin

    IL • D

    Sponsored 10/7/2025

  • Alex Padilla

    CA • D

    Sponsored 10/7/2025

  • Bernie Sanders

    VT • I

    Sponsored 10/7/2025

  • Chris Van Hollen

    MD • D

    Sponsored 10/7/2025

  • Richard Blumenthal

    CT • D

    Sponsored 10/7/2025

  • Kirsten Gillibrand

    NY • D

    Sponsored 10/7/2025

  • Angela Alsobrooks

    MD • D

    Sponsored 10/7/2025

  • Elizabeth Warren

    MA • D

    Sponsored 10/7/2025

  • Tammy Duckworth

    IL • D

    Sponsored 10/7/2025

  • Mazie Hirono

    HI • D

    Sponsored 10/7/2025

  • Timothy Kaine

    VA • D

    Sponsored 10/7/2025

  • Tammy Baldwin

    WI • D

    Sponsored 10/7/2025

  • Catherine Cortez Masto

    NV • D

    Sponsored 10/7/2025

  • Amy Klobuchar

    MN • D

    Sponsored 10/7/2025

  • Cory Booker

    NJ • D

    Sponsored 10/7/2025

  • Martin Heinrich

    NM • D

    Sponsored 10/7/2025

  • Mark Warner

    VA • D

    Sponsored 10/7/2025

  • Jeff Merkley

    OR • D

    Sponsored 10/27/2025

Roll Call Votes

No roll call votes available for this bill.

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