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Federal Worker Relief: Waiving Penalties for Thrift Savings Plan Withdrawals

This act aims to protect federal employees affected by government shutdowns. It allows them to withdraw up to $30,000 from their Thrift Savings Plan (TSP) without the usual 10% early withdrawal tax penalty. Additionally, the act simplifies TSP loan access and prevents missed loan payments during a shutdown from being treated as taxable distributions.
Key points
No 10% tax penalty on withdrawals up to $30,000 from TSP for federal employees during a government shutdown.
Allows multiple financial hardship withdrawals from TSP during a shutdown, up to the $30,000 limit.
Ability to repay withdrawn funds within 120 days after a shutdown, treating them as a tax-free rollover.
Facilitates access to TSP loans for employees affected by government shutdowns.
Missed TSP loan payments during a qualified shutdown will not be treated as a taxable distribution.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_5674
Sponsor: Rep. Beyer, Donald S. [D-VA-8]
Process start date: 2025-10-03
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Emergency Relief for Federal Workers Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5674.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-10-03.

What are the main provisions?

Key points include:

  • No 10% tax penalty on withdrawals up to $30,000 from TSP for federal employees during a government shutdown.
  • Allows multiple financial hardship withdrawals from TSP during a shutdown, up to the $30,000 limit.
  • Ability to repay withdrawn funds within 120 days after a shutdown, treating them as a tax-free rollover.
  • Facilitates access to TSP loans for employees affected by government shutdowns.
  • Missed TSP loan payments during a qualified shutdown will not be treated as a taxable distribution.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Beyer, Donald S. [D-VA-8].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Labor Benefits