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Federal Worker Relief: Easier Access to Savings During Government Shutdowns

This act aims to ease financial burdens for federal employees during government shutdowns by allowing penalty-free withdrawals from their Thrift Savings Plan (TSP) and providing flexibility for TSP loans. It waives the 10% additional tax on certain early withdrawals and adjusts loan repayment rules, helping employees manage their finances during periods of unpaid leave or furlough.
Key points
No 10% additional tax on early TSP withdrawals up to $30,000 for federal employees affected by a government shutdown.
Federal employees can make multiple financial hardship withdrawals from TSP, up to $30,000, during a shutdown.
Missed TSP loan payments during a shutdown will not be treated as taxable distributions, with missed amounts deducted from future pay.
The $30,000 limit for withdrawals will be adjusted annually for inflation.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_2966
Sponsor: Sen. Kaine, Tim [D-VA]
Process start date: 2025-10-01
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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_S_2966.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-10-01.

What are the main provisions?

Key points include:

  • No 10% additional tax on early TSP withdrawals up to $30,000 for federal employees affected by a government shutdown.
  • Federal employees can make multiple financial hardship withdrawals from TSP, up to $30,000, during a shutdown.
  • Missed TSP loan payments during a shutdown will not be treated as taxable distributions, with missed amounts deducted from future pay.
  • The $30,000 limit for withdrawals will be adjusted annually for inflation.
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 Sen. Kaine, Tim [D-VA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

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

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