This bill aims to provide financial relief to individuals affected by Federal Government shutdowns by allowing them to make penalty-free withdrawals from their retirement accounts. It defines an "applicable individual" as a federal contractor or employee of a federal contractor placed on unpaid leave or working without pay due to a Federal appropriations lapse. The bill also covers employees of federal grantees or states whose compensation is federally advanced or reimbursed, and employees of the District of Columbia Courts, Public Defender Service, or DC government who are furloughed or working without pay due to such a lapse. The legislation waives the 10% early withdrawal penalty for these distributions, which are termed "Federal Government shutdown distributions." There is an aggregate dollar limitation of $30,000 per taxable year , subject to inflation adjustments after 2025. Individuals have the option to repay the distributed amount to an eligible retirement plan within a 3-year period . Furthermore, the income from these distributions can be included ratably over a 3-taxable-year period , unless the taxpayer elects otherwise, providing flexibility in tax planning during financial hardship.