MD Launches Loan Program For Furloughed Federal Employees

ANNAPOLIS, MD — The Maryland Department of Labor on Wednesday launched its Federal Shutdown Loan Program, which aims to provide financial support to some federal employees affected by the ongoing government shutdown.

Through the program, workers can receive a one-time, no-interest loan of $700 to help them cover expenses like rent and groceries. The loan must be repaid 45 days after the shutdown ends, giving workers time to receive their back pay from the federal government.

The program is available to excepted federal employees, meaning they are required to work during a government shutdown but are not receiving a paycheck during that time.

“At a time when the federal government is stepping back from its most basic obligations, Maryland is stepping up to protect our people,” Gov. Wes Moore said in a statement. “The emergency support we announce today will keep public servants afloat as we enter a second week of this shutdown."

As the government shutdown enters its second week on Wednesday, there's no discernible endgame in sight.

Tours at the Capitol have come to a standstill. The House is keeping its doors closed, while the Senate is stuck in a loop of failed votes on a rejected plan to reopen the government. Meanwhile, President Donald Trump is threatening to mass fire federal workers and refuse back pay for the rest.

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The Senate is expected to try on Wednesday to advance the House GOP’s bill, but it is expected to fail again.

The federal government is the largest employer in the state of Maryland. Before this year’s federal workforce cuts, 269,000 Maryland residents were employed by the federal government and more than 160,000 federal civilian jobs were located in Maryland.

Although the Federal Shutdown Loan Program application portal opened to Marylanders on Wednesday, loans will only be issued if the shutdown is still in effect on Oct. 15, officials said.

The Comptroller’s Office will then process loan requests from the Maryland Department of Labor and the Treasurer’s Office will begin mailing the first batch of loan payments on Oct. 16.

"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."

To qualify for the loan, an applicant must be a Maryland resident and a federal employee designated as “excepted” during the shutdown. They will be required to provide proof of ID, Maryland residency, federal employment status, and “excepted” status.

The loan application is available at mdol.submittable.com/submit, which also includes FAQs in both English and Spanish. For support, applicants can email MDshutdownloan@submittable.com or call 410-849-6424, Monday through Friday from 9 a.m. to 5 p.m.

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 be eligible for state unemployment insurance benefits.

Marylanders who are former federal employees or otherwise impacted by the federal government transition can access resources at the dedicated federal worker support pages on the MD Labor and State of Maryland websites. This includes information on the Unemployment Compensation for Federal Employees program, Federal Worker Emergency Loan Program, and support in finding a new job.

The Republicans who have majority control in Congress believe they have the upper hand politically, as they fend off Democratic demands to quickly fund health insurance subsidies as part of any plan to end the shutdown.

But Democrats have dug in, convinced that Americans are on their side in the fight to prevent the looming health care price spikes and blaming Trump for the shutdown.

Behind the scenes, though, signs of discomfort are apparent.

A loosely formed collection of senators, Republicans and Democrats, have bantered about options for addressing the health insurance problem. One, Sen. Susan Collins of Maine, has offered her own plans.

Two prominent Republicans, Rep. Marjorie Taylor Greene of Georgia and Sen. Josh Hawley of Missouri, have said something must be done to stop the health insurance rate hikes.

And Trump himself signaled he was open to negotiating with Democrats over their demands to save health care subsidies. Earlier this week, the president said that talks were already underway as he wants “great health care” for the people, only to shift his tone hours later to say the government must reopen first.

The Associated Press contributed to this report.