Maryland Launches $700 Lifeline for Federal Employees Working Without Pay During Shutdown

The state of Maryland is stepping in to support federal employees forced to work without pay. Governor Wes Moore announced a new emergency loan program on Monday. This action comes as the federal government shutdown enters its second week.

The program offers immediate financial relief to essential federal workers residing in Maryland. It is designed to help them cover basic living expenses until the political impasse in Washington is resolved.

Program Details and Distribution Timeline

The Federal Shutdown Loan Program provides a one-time, no-interest loan of $700. It is specifically for “excepted” federal employees who are required to work during the shutdown. According to Reuters, Maryland is home to one of the largest populations of federal workers in the nation.

Applications are being accepted immediately through a state online portal. However, funds will only be disbursed if the shutdown remains in effect on October 15. The first batch of payments is scheduled to be mailed out on October 16.

The repayment terms are structured to align with the end of the shutdown. Borrowers must repay the loan in full within 45 days after the federal government reopens. This allows time for employees to receive their back pay from the federal government.

Broader Support for All Affected Workers

The state’s response extends beyond the loan program. Furloughed federal employees, who are not working, may file for state unemployment benefits. Federal contractors affected by the shutdown may also be eligible for similar assistance.

Maryland’s American Job Centers are offering additional resources. These include career counseling and job search workshops. The goal is to provide a comprehensive safety net for all workers impacted by the funding lapse.

State officials are also monitoring critical federal assistance programs. They are working to ensure services like Medicaid and food stamps continue for residents. An extended shutdown, however, could strain the state’s ability to fund these programs alone.

The launch of this loan program underscores the severe real-world consequences of the federal government shutdown. Maryland is providing a crucial financial lifeline to its public servants. This state-level intervention highlights the urgent need for a federal resolution to protect workers and their families.

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Who is eligible for the $700 loan in Maryland?

The loan is for Maryland residents who are federal employees classified as “excepted.” This means they are required to work without pay during the government shutdown. Applicants must provide proof of residency and employment status.

When will eligible workers receive the money?

Payments will only be issued if the shutdown continues past October 15. The state plans to start mailing the first checks on October 16. This timeline is contingent on the shutdown remaining active.

Do furloughed workers qualify for this loan?

No, this specific program is only for employees who are working without pay. However, furloughed federal workers can apply for unemployment insurance benefits through the state. They must repay these benefits once they receive federal back pay.

How does the loan repayment work?

The $700 loan must be repaid in full within 45 days after the government shutdown ends. This grace period is intended to give workers time to receive their retroactive pay from the federal government. The loan itself is interest-free.

What other help is available for affected Marylanders?

The state is offering career services and job fairs at its American Job Centers. Officials are also working to keep federal benefit programs like SNAP operational. Support extends to federal contractors who may also face income loss.

Trusted Sources

Associated Press, Reuters, The Baltimore Sun