WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) and colleagues introduced the Emergency Relief for Federal Contractors Act (ERFC), which would allow federal contractors currently working without pay to withdraw funds from their retirement savings without being penalized.

A government shutdown disrupts $14.5 billion per week in federal contracts, including $3.6 billion for small businesses. Unlike directly-employed federal workers, federal contractors do not receive automatic backpay for their work during a government shutdown. The ERFC would ensure federal contractors could stay afloat with retirement savings, penalty-free, when they face a financial hardship like a government shutdown.

In addition to Sen. Warner, this legislation is sponsored by Sens. Catherine Cortez Masto (D-NV), Tim Kaine (D-VA), Ron Wyden (D-OR), Angela Alsobrooks (D-MD), Amy Klobuchar (D-MN), Edward Markey (D-MA), Jeanne Shaheen (D-NH), Chris Van Hollen (D-MD), Richard Blumenthal (D-CT), Jacky Rosen (D-NV), Mazie Hirono (D-HI), Dick Durbin (D-IL), Alex Padilla (D-CA), and Cory Booker (D-NJ).  

Read the full bill here. 

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