Cortez Masto, Colleagues Introduce Legislation to Keep Federal Contractors Afloat During Government Shutdown

Washington, D.C. - Today, U.S. Senator Catherine Cortez Masto 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.

"Federal contractors should not have to worry about keeping food on the table during a government shutdown, and many can't simply weather an unknown period of time with no income and no promise of backpay," said Senator Cortez Masto. "This commonsense legislation gives federal contractors a break by allowing them to use the savings that they've earned 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.

Senator Cortez Masto has consistently supported federal workers in Nevada and throughout the country. Today, she also cosponsored legislation introduced by U.S. Senator Tim Kaine (D-Va.) to allow federal workers to withdraw funds from their Thrift Savings Plan retirement accounts without penalties during a government shutdown. She has called on the Trump administration to stop its indiscriminate firing of federal workers across multiple agencies, including the Department of Health and Human Services, the Department the of Interior, the U.S. Forest Service, the National Nuclear Security Administration, and the Department of Veterans Affairs.

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