H.R. 5708 — Federal Employees Civil Relief Act

This section states the purpose of the Act as providing for the temporary suspension of judicial and administrative proceedings and transactions that may adversely affect the civil rights of federal workers during a shutdown.

This section defines key terms for purposes of the Act, including: (1) consumer reporting agency, as defined in section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f)); (2) contractor, as defined in 41 U.S.C. 7101; (3) court, judgment, and State, as defined in section 101 of the Servicemembers Civil Relief Act (50 U.S.C. 3911); (4) covered period, as the period beginning on the date a shutdown begins and ending 30 days after the shutdown ends; (5) Federal worker, as an employee of a Government agency, including a contractor employee; (6) Government agency, as each authority of the executive, legislative, or judicial branch of the U.S. government; and (7) shutdown, as any period with a lapse in appropriations for any Government agency or Federal department exceeding 24 hours due to failure to enact a regular appropriations bill or continuing resolution, or when U.S. debt exceeds the statutory limit under 31 U.S.C. 3101.

This section establishes the Act's jurisdiction over the United States, each state (including political subdivisions), and all territory subject to U.S. jurisdiction. It applies the Act to judicial or administrative proceedings commenced in covered jurisdictions, excluding criminal proceedings and child support payments, and permits applications under the Act to be filed in any court otherwise having jurisdiction over the matter if no prior proceeding is pending. The section further requires heads of federal agencies—including appointing authorities in the legislative and judicial branches and for certain contractor employees—to provide written notice to federal workers of the Act's benefits upon hiring and periodically thereafter, including at the start of any government shutdown.

This section authorizes a federal worker who is furloughed or required to work without pay during a government shutdown to apply to a court for a temporary stay, postponement, or suspension of any payment owed or due during the shutdown for rent, mortgage, tax, fine, penalty, insurance premium, student loan repayment, or other civil obligation or liability.

This section prohibits landlords from evicting federal workers from residential premises or subjecting those premises to distress during a government shutdown, except by court order. It authorizes courts to stay eviction or distress proceedings for 30 days (or a different period as justice requires) upon request by a federal worker whose ability to pay rent is materially affected by the shutdown, or to adjust lease obligations to preserve parties' interests, and permits equitable relief to landlords. It establishes a misdemeanor penalty—fine under 18 U.S.C., imprisonment for up to one year, or both—for knowing participation in or attempts at prohibited evictions or distress.

This section establishes mortgage protections for federal workers during a government shutdown "covered period." It defines a covered action as a court proceeding or enforcement related to a pre-shutdown mortgage or similar obligation on the worker's real or personal property; authorizes courts to stay such proceedings or adjust obligations if the worker's compliance is materially impaired by the shutdown; invalidates any sale, foreclosure, or seizure during the covered period unless court-ordered with approval; and imposes misdemeanor penalties (fine or imprisonment up to one year, or both) for knowing violations.

This section prohibits foreclosure or enforcement of liens on the property or effects of federal workers—including liens for storage, repair, or cleaning; other liens on such property; or motor vehicle loans—during a covered period without a court order issued beforehand. In related proceedings, a court may stay enforcement as justice requires or, upon a federal worker's request where their ability to comply is materially affected by a shutdown, must stay the proceeding or adjust the obligation to preserve parties' interests. Knowing violations or attempts are misdemeanors punishable by fine under 18 U.S.C., imprisonment for up to one year, or both.

This section establishes protections for student loans of federal workers furloughed or working without pay during a government shutdown (i.e., federal loans under title IV of the Higher Education Act of 1965 and private education loans as defined in the Truth in Lending Act). Specifically, during the shutdown, it (1) provides deferment eligibility, during which no principal installments are required and no interest accrues; (2) prohibits lenders from placing such loans in default without a court order if payments fall due and remain unpaid; and (3) for loans already in default, prohibits lenders from sending them to collections, reporting adversely to consumer reporting agencies, or garnishing wages, tax refunds, or government benefits without a court order. The section further authorizes courts to stay related collection proceedings or adjust obligations as justice requires and makes knowing violations a misdemeanor punishable by fine under 18 U.S.C., imprisonment for up to one year, or both.

This section provides for deferral of federal income tax collection, upon notice to the IRS, on income due during a government shutdown for federal workers whose ability to pay is materially affected, for up to 90 days after the shutdown ends. The section prohibits interest or penalties from accruing during the deferral period, suspends the statute of limitations on collections for that period, and excludes taxes imposed on employees under IRC §3101 (i.e., the employee share of Social Security and Medicare taxes).

This section provides that covered insurance policies—defined as health, life, disability, or motor vehicle insurance policies that a federal worker entered into before a government shutdown begins and that remain in effect during the shutdown—shall not lapse, terminate, or be forfeited due to non-payment of premiums (or related interest or indebtedness) without a court order.

This section establishes protections for federal workers affected by a government shutdown (i.e., furlough or required work without pay), prohibiting lenders, creditors, credit reporters, and insurers from taking adverse actions—such as denying or revoking credit, changing credit or insurance terms, issuing adverse credit reports, or refusing insurance—based solely on the worker's application for or receipt of a stay, postponement, or suspension of civil obligations (i.e., fines, penalties, insurance premiums). It further (1) authorizes courts to reduce or waive contract penalties if nonperformance was materially affected by a shutdown; (2) requires courts, upon application or sua sponte, to stay execution of judgments or orders and vacate or stay attachments or garnishments if compliance was materially affected by a shutdown; and (3) extends these protections to dependents materially affected by the shutdown's impact on the federal worker.

This section establishes enforcement mechanisms for violations of the Act. Specifically, it (1) authorizes the Attorney General to commence civil actions against persons engaging in a pattern or practice of violations or violations raising an issue of significant public importance, with courts able to grant equitable or declaratory relief, monetary damages to aggrieved persons, and civil penalties of up to $55,000 for a first violation or $110,000 for any subsequent violation; (2) permits aggrieved persons to intervene in such actions and obtain relief; (3) creates a private right of action for aggrieved persons to seek equitable or declaratory relief and monetary damages; and (4) authorizes courts to award costs and reasonable attorney fees to prevailing private plaintiffs, while clarifying that these remedies do not preempt other available relief under law.