WASHINGTON — As the longest federal government shutdown continues, congresswoman Elaine Luria has introduced a bipartisan shutdown relief act on Friday.
The act would provide relief to federal workers suffering from the financial repercussions of the government shutdown.
Under the current law, federal workers under 59 and a half years old may only withdraw funds from their 401(k) retirement saving plan by taking out a loan or by demonstrating that they are suffering from financial hardship. There's also a penalty for anyone who withdraws early.
The new Shutdown Relief Act would amend the United States Code to allow such federal workers to withdraw money from their retirement fund, up to the amount of their missed shutdown pay without penalty, as long as the funds are returned within 180 days.
“Our federal workforce should be able to access their hard-earned money during disruptive political breakdowns they had no role in causing. Throughout this shutdown, Virginians have contacted my office with stories of lengthy furlough periods or working without pay,” Congresswoman Luria said. “Senate Republicans should do the sensible thing and pass bipartisan House legislation to reopen government immediately. Failing that, our top priority should be making it easier for federal workers to pay their bills and live their lives.”
More than 800,000 federal workers missed a paycheck this week due to the shutdown.