Emergency Relief for Federal Workers Act of 2025 waives penalties for federal employees withdrawing from the Thrift Savings Plan during a lapse in.
The Emergency Relief for Federal Workers Act of 2025 provides relief to federal employees affected by a lapse in appropriations. It waives the 10% additional tax on certain financial hardship distributions from the Thrift Savings Plan for federal employees on furlough or working without pay due to a qualified lapse in appropriations. It also allows federal employees to make hardship withdrawals from their Thrift Savings Plan accounts without penalty, up to a limit of $30,000, subject to inflation adjustments.
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