Essential Federal Workers Eligible For Maryland Loan

Maryland has launched a loan program directed at essential federal employees who work without pay during the shutdown.

Gov. Wes Moore announced Monday that the Maryland Department of Labor is accepting applications for a one-time financial support of a no interest $700 loan for essential workers. The loan must be repaid 45 days after the shutdown ends, giving workers time to receive their back pay from the federal government.

Loans will be issued only if the federal shutdown remains in effect on Oct. 15.

State Officials Reach Out

“A federal government shutdown creates immediate financial hardship for our dedicated public servants,” said Maryland Department of Labor Secretary Portia Wu. “Maryland is home to a significant number of federal employees, and it is our responsibility to provide a bridge for those who are working without pay. This loan program is a critical lifeline to ensure that our neighbors can continue to put food on the table and keep a roof over their heads while we await a resolution.”

“During a federal shutdown, Marylanders need action, not delay,” said Comptroller Brooke Lierman. “This loan program helps federal workers cover essentials like food, bills, and fuel while they await their paychecks. The Office of the Comptroller is ready to work with our state partners to get relief to Maryland’s federal workers safely and quickly.”

Who’s Eligible

Applicants must be Maryland residents and federal employees designated as “excepted” during the shutdown. They will be required to provide proof of ID, Maryland residency, federal employment status and “excepted” status.

Furloughed federal employees—who are not working and are not being paid during the government shutdown – may be eligible for unemployment insurance benefits through the Unemployment Compensation for Federal Employees program. They are required to repay those benefits after the shutdown ends, and they receive retroactive pay.

Furloughed employees of federal contractors—who are not working and are not being paid—may also be eligible for state unemployment insurance benefits.

According to the Department of Labor, since the Trump Administration has taken office, Maryland has lost more than 15,000 federal jobs.

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