Legislation recently introduced in the U.S. House of Representatives would protect federal employees and contractors from financial harm during government shutdowns or breaches of the federal debt limit.
The Federal Employees Civil Relief Act would prohibit evictions and foreclosures of federal workers during a shutdown without a court order. The bill also would prohibit creditors and lenders from taking adverse action or issuing negative credit reports against impacted workers. Insurance policies could not be canceled or lapse due to missed payments, and student loan and tax payments would be permitted to be deferred without penalty or interest.
Civil proceedings and financial obligations would be paused for the duration of a shutdown and for 30 days afterward. The Department of Justice would be empowered to enforce violations through civil action.
“Federal workers should never face eviction, foreclosure, or financial ruin because of a lapse in government funding,” U.S. Rep. Brendan Boyle (D-PA), House Budget Committee ranking member, who co-introduced the bill, said. “This bill makes clear that when the government shuts down, the people who keep it running deserve basic protections and peace of mind.”
The Federal Employees Civil Relief Act is similar to the protections the Servicemembers Civil Relief Act provides military service members.