Federal workers get emergency access to retirement savings during shutdowns
H.R. 5674 — Emergency Relief for Federal Workers Act of 2025 · Filed by Donald Beyer (D-VA) · 38 cosponsors · Introduced Oct 3, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill allows federal employees who are furloughed or working without pay during a government shutdown to withdraw up to $30,000 from their Thrift Savings Plan (federal retirement account) without the usual 10% early-withdrawal tax penalty, and to take loans against their retirement savings without normal restrictions. It also allows them to repay those withdrawals within 120 days after the shutdown ends without tax consequences.
Why we flagged it
The bill's core mechanism is straightforward: it creates a temporary tax exemption and borrowing flexibility for federal workers during shutdowns. This is a targeted relief measure, not a broader policy reform or industry carve-out.
What the text implies
- The 120-day window to repay withdrawn funds may create cash-flow pressure for employees who do not recover financially quickly after a shutdown ends.
- Agencies are required to submit employee lists (names and SSNs) to the Thrift Savings Board during shutdowns, creating a data-collection obligation that may have privacy or administrative overhead implications.
The full analysis lists 3 implications of this text.
Who it affects
Federal employees facing financial hardship during shutdowns gain meaningful liquidity relief and tax-advantaged access to their own savings. The $30,000 cap and inflation adjustment protect the long-term integrity of retirement accounts while providing emergency relief during periods of involuntary income loss.