Shaheen Joins Colleagues in Introducing Bills to Support Federal Employees Experiencing Financial Hardship During Shutdown

(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH) joined her Democratic colleagues in introducing three bills, the Emergency Relief for Federal Workers Act, the Emergency Relief for Federal Contractors Act and the Fair Pay for Federal Contractors Act, that would support federal employees facing financial hardships during a government shutdown.

“During a government shutdown the majority of federal employees and many workers at federal contractors are forced to work without pay,” said Senator Shaheen. “That can be a huge and unexpected financial burden that many families can’t afford, especially at a time when costs are already too high. These commonsense bills would broaden the resources available to federal workers and contractors during a shutdown, providing some much-needed financial relief.”

The Emergency Relief for Federal Workers Act would allow federal employees to withdraw funds from their Thrift Savings Plan (TSP) without being penalized if the government shutdown is prolonged, while ensuring that funds could be recontributed later on. During past shutdowns, many federal employees turned to their TSP retirement accounts to make hardship withdrawals to cover bills. However, there are penalties for withdrawing these funds, and barriers to recontributing funds once the government reopens.

The Emergency Relief for Federal Contractors Act and the Fair Pay for Federal Contractors Act would help workers at federal contractors stay afloat when they face a financial hardship during a government shutdown. Unlike directly-employed federal workers, employees of federal contractors do not receive automatic backpay for any of the services they provide during a government shutdown. Specifically, the Emergency Relief for Federal Contractors Act would allow federal contractors to withdraw from their Individual Retirement Accounts (IRAs), penalty-free, and the Fair Pay for Federal Contractors Act would ensure workers at federal contractors receive backpay.

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