arrow_back Back to App

Penalty-Free Retirement Withdrawals for Federal Workers During Government Shutdowns

This act allows federal contractors and employees to withdraw up to $30,000 from retirement accounts without penalties during government shutdowns. These funds can be repaid within three years, offering financial relief during periods of unpaid leave. The changes aim to mitigate the financial impact on individuals affected by a lack of pay.
Key points
Allows penalty-free withdrawals of up to $30,000 from retirement accounts for individuals affected by federal government shutdowns.
Individuals can repay the withdrawn amounts to their retirement plans within a 3-year period.
Applies to federal contractors, employees of federal contractors, and certain other individuals impacted by a lapse in federal appropriations.
Income from these distributions can be spread over a 3-year period for tax purposes, easing the immediate tax burden.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_5690
Sponsor: Rep. Subramanyam, Suhas [D-VA-10]
Process start date: 2025-10-03
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Emergency Relief for Federal Contractors Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5690.

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:

  • Allows penalty-free withdrawals of up to $30,000 from retirement accounts for individuals affected by federal government shutdowns.
  • Individuals can repay the withdrawn amounts to their retirement plans within a 3-year period.
  • Applies to federal contractors, employees of federal contractors, and certain other individuals impacted by a lapse in federal appropriations.
  • Income from these distributions can be spread over a 3-year period for tax purposes, easing the immediate tax burden.
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. Subramanyam, Suhas [D-VA-10].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

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