[Congressional Record Volume 171, Number 216 (Tuesday, December 23, 2025)]
[Extensions of Remarks]
[Page E1243]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]





  INTRODUCTION OF THE THRIFT SAVINGS PLAN EMERGENCY WITHDRAWAL ACT OF 
                                  2025

                                 ______
                                 

                       HON. ELEANOR HOLMES NORTON

                      of the district of columbia

                    in the house of representatives

                       Tuesday, December 23, 2025

  Ms. NORTON. Mr. Speaker, today, I introduce the Thrift Savings Plan 
Emergency Withdrawal Act of 2025, which would expand the circumstances 
in which a federal employee recently separated from the federal 
government can take a penalty-free withdrawal from their Thrift Savings 
Plan (TSP) account. This bill would help former federal employees pay 
their bills after separation.
  First, this bill would allow a penalty-free withdrawal to make up the 
gap between the interim payments a retiree receives during the period 
the Office of Personnel Management is calculating the retiree's final 
annuity and the estimated final annuity. A retiree's interim payment is 
generally only 60 percent to 80 percent of the finalized net payment. 
Second, this bill would allow a penalty-free withdrawal if an 
individual is involuntarily separated from the federal government. In 
both cases, the maximum withdrawal would be $100,000. Individuals would 
be able to make a withdrawal for up to a year after separation and to 
repay the withdrawn amount within three years to avoid the existing 
early withdrawal penalty, which is a 10 percent additional tax.
  I urge my colleagues to support this bill.

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