summary
Introduced
10/03/2025
10/03/2025
In Committee
10/03/2025
10/03/2025
Crossed Over
Passed
Dead
Introduced Session
119th Congress
Bill Summary
A BILL To amend the Internal Revenue Code of 1986 to waive certain penalties for affected Federal employees receiving a distribution from the Thrift Savings Plan during a lapse in appropriations, and for other purposes.
AI Summary
This bill provides financial relief for federal employees during a government shutdown (referred to in the bill as a "qualified lapse in appropriations") by modifying tax and Thrift Savings Plan (TSP) rules. Specifically, the bill waives the typical 10% early withdrawal penalty for federal employees who take distributions from their TSP during a government shutdown, up to $30,000, with the amount adjustable for inflation. The bill also allows federal employees on furlough or working without pay to make hardship withdrawals from their TSP without the usual restrictions, and enables them to repay those withdrawals within 120 days of the shutdown ending. Additionally, the legislation ensures that missed loan payments during a shutdown will not be considered a taxable distribution, preventing employees from being penalized for being unable to make TSP loan payments due to a lack of income. These provisions are designed to provide financial flexibility and protection for federal workers during periods of uncertain government funding, with the amendments set to apply to distributions and payments after September 30, 2025.
Committee Categories
Budget and Finance
Sponsors (39)
Don Beyer (D)*,
Joyce Beatty (D),
Wesley Bell (D),
Troy Carter (D),
Judy Chu (D),
Jim Costa (D),
Sharice Davids (D),
Diana DeGette (D),
Sarah Elfreth (D),
Lois Frankel (D),
Dan Goldman (D),
Jared Huffman (D),
Jonathan Jackson (D),
Hank Johnson (D),
Robin Kelly (D),
Ted Lieu (D),
April McClain-Delaney (D),
Jenn McClellan (D),
LaMonica McIver (D),
Gwen Moore (D),
Seth Moulton (D),
Jerry Nadler (D),
Eleanor Holmes Norton (D),
Nellie Pou (D),
Emily Randall (D),
Linda Sánchez (D),
Brad Schneider (D),
Terri Sewell (D),
Darren Soto (D),
Suhas Subramanyam (D),
Eric Swalwell (D),
Shri Thanedar (D),
Rashida Tlaib (D),
Nydia Velázquez (D),
Eugene Vindman (D),
James Walkinshaw (D),
Bonnie Watson Coleman (D),
George Whitesides (D),
Nikema Williams (D),
Last Action
Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (on 10/03/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/119th-congress/house-bill/5674/all-info |
| BillText | https://www.congress.gov/119/bills/hr5674/BILLS-119hr5674ih.pdf |
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