Federal Employees Civil Relief Act
S. 2982, the Federal Employees Civil Relief Act, would temporarily suspend or pause a wide range of civil liabilities and related proceedings against Federal workers and contractors during a government shutdown or when the U.S. debt limit is breached. The bill creates a covered period starting when a shutdown begins and ending 30 days after it ends, during which federal workers (and contractors) could seek court-ordered stays, adjustments, or deferrals of obligations such as rent, mortgage payments, taxes, student loans, and other civil liabilities. It also shields these workers from certain enforcement actions (evictions, foreclosures, liens, wage garnishments, and adverse credit actions) and provides protections for related rights, while allowing for enforcement through the courts and civil penalties for violations. The act applies nationwide (including states and territories) to civil and administrative proceedings, but excludes criminal prosecutions and child support. In short, the bill aims to prevent a cascade of civil and financial repercussions for federal employees and contractors during shutdowns or debt-limit breaches by giving workers temporary relief and limiting creditor actions, with court oversight and potential penalties for violations.
Key Points
- 1covers period and participants
- 2- Applies during a shutdown or debt-limit breach (the “covered period”); includes federal workers and, if applicable, employees of contractors.
- 3- Applies to the United States, states, and territories; does not apply to criminal proceedings or child support payments.
- 4- Includes definitions for key terms (e.g., “shutdown,” “contractor,” “covered period,” “federal worker”).
- 5broad relief and protections during the shutdown
- 6- Federally connected workers can seek court-ordered stays, postponements, or reductions of various civil obligations (rent, mortgage, taxes, fines, student loans, etc.) during the covered period.
- 7- Anticipatory relief and notification requirements so workers know their rights and benefits.
- 8housing and mortgage protections
- 9- Eviction or distress actions against a federal worker’s residence cannot proceed without a court order during a shutdown.
- 10- Courts may grant stays or adjust lease obligations; sales or foreclosures of a worker’s property related to mortgage or similar obligations are restricted unless pre-approved by a court.
- 11liens, collections, and credit protections
- 12- Foreclosure or enforcement of liens on a federal worker’s property cannot proceed during the covered period without court involvement.
- 13- Courts may stay or modify lien-related actions; activities like wage garnishment or reporting adverse credit information are restricted during the period.
- 14student loans and tax relief
- 15- Student loan payments may be deferred, with no interest accrual or default actions during the covered period; lenders are limited in collections and reporting.
- 16- Income tax collection can be deferred for up to 90 days after the shutdown ends; no interest/penalties accrue during deferment; statute of limitations for deferrals is suspended during the covered period.
- 17insurance protections
- 18- Covered health, life, disability, and motor vehicle insurance policies cannot lapse or terminate for nonpayment of premiums due during the shutdown, absent a court order.
- 19enforcement and remedies
- 20- The Attorney General can sue violators in federal court; penalties may be assessed for violations.
- 21- Private rights of action are available to individuals aggrieved by violations; prevailing plaintiffs may recover costs and attorney’s fees.
- 22- The act preserves other remedies under existing law and does not preempt non-violation remedies.
- 23notice and administration
- 24- Agencies must notify federal workers about these protections when they become employees and during shutdowns.