Emergency Relief for Federal Contractors Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 5690 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 5690 To allow penalty-free distributions from retirement accounts in the case of certain Federal contractors impacted by Federal Government shutdowns. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES October 3, 2025 Mr. Subramanyam (for himself, Mr. Walkinshaw, Mr. Beyer, Ms. McClellan, Ms. Elfreth, Ms. Norton, Mr. Swalwell, and Mr. Horsford) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To allow penalty-free distributions from retirement accounts in the case of certain Federal contractors impacted by Federal Government shutdowns. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Emergency Relief for Federal Contractors Act of 2025''. SEC. 2. TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS. (a) In General.--Section 72(t) of the Internal Revenue Code of 1986 shall not apply to any Federal Government shutdown distribution. (b) Aggregate Dollar Limitation.-- (1) In general.-- (A) Limitation.--For purposes of this section, the aggregate amount of distributions received by an individual which may be treated as Federal Government shutdown distributions for any taxable year shall not exceed $30,000. (B) Inflation adjustment.--In the case of any taxable year beginning after 2025, the $30,000 amount under subparagraph (A) shall be increased by an amount equal to-- (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code of 1986 for the calendar year in which the taxable year begins, determined by substituting ``calendar year 2024'' for ``calendar year 2016'' in