Emergency Relief for Federal Workers Act of 2025

This bill provides emergency financial relief for federal employees affected by government shutdowns. It allows workers on furlough or working without pay during a shutdown lasting at least two weeks to withdraw up to $30,000 (adjusted annually for inflation) from their Thrift Savings Plan (TSP) retirement accounts without the usual 10% tax penalty. The bill also prevents missed TSP loan payments during shutdowns from being treated as taxable distributions, protecting employees from unexpected tax bills. These provisions apply to withdrawals and loan payments made after September 30, 2025, directly supporting federal workers facing income disruption during funding lapses.