A bill to provide that Federal employees who are furloughed or are not paid for performing essential services during a period of a lapse in appropriations, may receive a loan, paid at their standard rate of compensation, from the Thrift Savings Fund, and for other purposes.

Authorizes a Federal employee to borrow an amount from his or her account in the Thrift Savings Fund during any period of lapse of appropriations in FY 1996 if during such period the employee: (1) is furloughed as a result of the lapse; or (2) performs emergency services involving the safety of human life or the protection of property, and does not receive compensation for such services as a result of such lapse. Specifies loan conditions.

Provides for payback of such a loan in installments from the employee's pay after the lapse ends. Declares that such a loan shall not be treated as a taxable distribution under the Internal Revenue Code.