Sponsors (15)
Introduced October 8, 2025 by Brendan Francis Boyle · Last progress October 8, 2025
The bill gives substantial short‑term legal and financial protections to federal employees during shutdowns—pausing debts, preserving insurance, deferring taxes, and enabling enforceable stays—while shifting costs, complexity, and litigation risk onto creditors, insurers, courts, and potentially taxpayers, and leaving non‑federal workers without comparable relief.
Federal employees (including covered contractor staff) affected by a shutdown can obtain court-ordered stays or adjustments across rent, mortgages, taxes, loans (including Title IV and many private student loans), fines, liens, repossessions, foreclosures, and evictions during the covered period, preventing immediate loss of housing, property, or utilities.
Federal employees retain health, life, disability, and vehicle insurance coverage during a shutdown even if premiums due then go unpaid, avoiding immediate gaps in medical and death/disability benefits.
Federal employees whose pay is disrupted can defer filing and paying federal income tax for up to 90 days after the shutdown ends without interest or penalties during the deferment, easing short‑term cash‑flow stress.
Creditors, insurers, landlords, servicers and other private parties will face delayed payments, higher administrative and compliance costs and added credit risk during covered periods, which can be passed on to consumers via higher premiums, fees, interest rates, or tighter underwriting.
Courts and adjudicatory systems are likely to see surges in emergency motions for stays or adjustments during shutdowns, creating additional workload, delaying other cases, and imposing administrative costs on the judiciary and agencies.
Tax deferral is temporary: affected workers still owe deferred income taxes after the 90‑day window (and OASDI/Social Security withholdings are not deferred), risking a lump‑sum payment when the period ends and leaving certain payroll tax shortfalls unaddressed.
Based on analysis of 13 sections of legislative text.
Delays and limits collection and enforcement actions (taxes, loans, evictions, foreclosures, liens, insurance lapses) against federal workers during a government shutdown, and permits court-ordered relief.
Provides temporary legal protections for Federal employees (including contractor employees) who are furloughed or required to work without pay during a government shutdown. It pauses or delays many kinds of collection and enforcement actions—tax collection, evictions, foreclosures, liens, insurance lapses, student loan collections—and lets courts stay, adjust, or vacate judgments and enforcement to account for a worker’s inability to pay during the shutdown. It also creates enforcement tools, civil penalties, and limited criminal penalties for knowing violations, and requires agencies to notify workers of these protections.