Emergency Relief for Federal Workers Act of 2025

This bill allows federal employees who are furloughed or working without pay during a government shutdown (defined as a funding lapse of at least two weeks) to withdraw up to $30,000 from their Thrift Savings Plan (TSP) retirement savings without the usual 10% early withdrawal penalty. The $30,000 limit adjusts annually for inflation and applies per shutdown period. It also ensures missed TSP loan payments during a shutdown are not treated as taxable distributions, and employees can later contribute back up to the withdrawn amount without penalty. The bill directly affects federal workers facing financial hardship due to funding lapses, providing immediate relief through modified TSP rules.