Sponsors (20)
The bill gives broad, uniform temporary protections to federal employees (and many contractors) during shutdowns—pausing evictions, foreclosures, repossessions, tax and loan obligations and preserving insurance—but concentrates costs, administrative and litigation burdens on creditors, insurers, courts, and taxpayers while leaving some obligations (payroll taxes, child support, criminal matters) unprotected.
Federal employees (including many contractor staff) can pause or halt enforcement of housing, mortgage, lien, vehicle repossession, and other debt-collection actions during a shutdown and obtain court stays or adjustments to avoid eviction or loss of essential property.
Federal employees furloughed or unpaid during a shutdown may defer federal income tax payments (up to a specified post-shutdown period) with no interest or penalties accruing during the deferment, easing immediate cash-flow stress.
Health, life, disability, and auto insurance coverage for federal employees and their families is preserved during a shutdown even if premiums fall due then, maintaining continuity of critical protections.
Deferred federal tax payments create a later lump-sum liability for affected employees and taxpayers, which may cause significant financial strain when the deferment period ends.
Key obligations are excluded from relief—payroll (Social Security/Medicare) withholdings remain due on time, and the Act excludes criminal proceedings and child-support matters—leaving important gaps in relief for some workers and families.
Creditors, insurers, landlords, and loan servicers face delayed collections, unpaid premiums, and administrative burdens during shutdowns, which may be passed on to other consumers through higher fees, premiums, or interest rates.
Based on analysis of 13 sections of legislative text.
Introduced October 7, 2025 by Brian Emanuel Schatz · Last progress October 7, 2025
Allows federal employees (including certain contractor employees) who are furloughed or required to work without pay because of a government shutdown to temporarily pause or delay many civil financial obligations that fall due during the shutdown. It bars insurers, landlords, lenders, student loan servicers, and credit reporters from taking many enforcement actions (evictions, foreclosures, certain collections, adverse credit reporting) during the covered shutdown period without a court order, authorizes courts to stay or adjust obligations, and creates civil and limited criminal penalties for knowing violations. The Act also permits deferral of federal income tax payments due during a shutdown (excluding payroll taxes) for up to 90 days after the shutdown ends, with no interest or penalties during the deferment period.