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Rep. Subramanyam moves to aid federal workers during shutdown
The legislation instructs regulators, including the Federal Reserve and the Consumer Financial Protection Bureau, to issue guidance within 180 days of enactment.
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Malvika Choudhary - Fri, 03, Oct 2025
- 13:49 EDT
- 16
Suhas Subramanyam / File Photo
Congressman Suhas Subramanyam introduced two bills aimed at protecting federal workers and contractors from the financial fallout of the ongoing Republican-led shutdown of the federal government.
The Shutdown Guidance for Financial Institutions Act would direct federal regulators to require banks, credit unions, and other institutions to adopt flexible practices for individuals impacted by shutdowns.
Also Read: Congressmen Subramanyam and Bera decline pay during government shutdown
The legislation instructs regulators, including the Federal Reserve and the Consumer Financial Protection Bureau, to issue guidance within 180 days of enactment. Institutions would be encouraged to extend credit, modify loan terms, and prevent shutdown-related hardships from damaging consumer credit scores.
“This legislation ensures financial institutions recognize the unique burdens caused by government shutdowns and act responsibly to protect workers and contractors who are caught in the crossfire,” Subramanyam said.
The second measure, the Emergency Relief for Federal Contractors Act, would allow contractors to withdraw up to $30,000 from retirement accounts without facing the 10 percent early withdrawal penalty.
The bill would also permit contractors to recontribute the withdrawn amount within three years, or alternatively spread the tax burden across three years. The measure, also introduced in the Senate by Sen. Catherine Cortez Masto (D-NV), responds to the fact that many contractors do not receive back pay after shutdowns.
Subramanyam criticized House Republicans for precipitating the shutdown, saying, “House Republicans would rather shut down the government and mass fire federal employees than come to the table to negotiate a bipartisan funding agreement that protects people’s health care and stops misguided cuts. Our constituents should not pay the price for Washington's dysfunction.”
Virginia’s 10th Congressional District, which Subramanyam represents, includes more than 36,000 federal workers and thousands of contractors. He cited past shutdowns, including the 35-day closure during the Trump administration, as evidence of the financial toll on his constituents.
Subramanyam has also signed on to related measures, including the Fair Pay for Federal Contractors Act, the Emergency Relief for Federal Workers Act, the No Pay for Congress During Default or Shutdown Act, the Securing Assurance for Federal Employees (SAFE) Act, and the Help FEDS Act.
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