Maryland Delivers $700 No-Interest Loans to Shutdown-Stranded Federal Workers | The Locally Times
Reactivated in February 2026, Maryland's Federal Shutdown Loan Program has disbursed $35,000, primarily to TSA agents, as federal employees continue working without pay.
As a partial federal government shutdown leaves thousands of Marylanders working without pay, the state has stepped in with a critical financial lifeline. The Maryland Department of Labor announced Thursday the authorization of a second payment for its Federal Shutdown Loan Program, providing $700 no-interest loans to federal employees struggling to cover essential costs. This initiative directly supports Maryland residents caught in the federal gridlock. Transportation Security Administration (TSA) employees, often on the front lines of public safety, represent the largest group of current applicants, accounting for 42 percent of recipients. For these workers, the state's commitment means a key buffer to meet essential daily needs like rent and groceries during periods of lost income. ## Maryland Steps Up Amid Federal Gridlock Governor Wes Moore’s administration has authorized the continuation of this key Federal Shutdown Loan Program, underscoring Maryland's commitment to its workforce when federal paychecks falter. The Maryland Department of Labor reactivated the program in February 2026, specifically targeting the partial federal shutdown impacting the Department of Homeland Security. Since then, it has already provided $35,000 in no-interest loans to eligible residents. The program offers a $700 no-interest loan specifically to Maryland residents who are federal employees designated as “excepted.” These “excepted” workers face a unique hardship: they are legally required to report to work during a shutdown but receive no pay. Compounding their struggle, these employees are also ineligible for unemployment insurance benefits, making state-level support not just helpful, but key during periods of federal government inactivity. ## A Proven Lifeline: Program's History and Scale The Federal Shutdown Loan Program isn't new; it was originally established by the Maryland General Assembly in 2019. This foresight demonstrated a proactive approach by the state to mitigate the severe financial strain federal shutdowns impose on its residents. The current activation is a direct continuation of this proven support, building on past successes. The program proved its value during a federal shutdown in Fall 2025, as The Locally Times previously reported. That October-November 2025 shutdown saw the program issue a staggering 3,483 loans, totaling $2,438,100, to more than 2,000 excepted federal employees. Notably, records indicate two-thirds of those Fall 2025 borrowers required a second loan during that period. To ensure fair access, applicants who received a Federal Shutdown Program Loan in Fall 2025 were required to repay that loan in full before applying for assistance during this current shutdown. While the current shutdown's exact start date and duration remain unspecified in public records, the program's reactivation in February 2026 clearly signals a sustained period of federal employees working without pay. The total funds allocated for the current loan program are also not detailed in public documents. ## Beyond Loans: Comprehensive State Support Beyond direct financial assistance, Maryland offers a comprehensive safety net. The state has reactivated its 'Maryland Workers Impacted by the Federal Government Shutdown' resource website, an essential online portal. Here, federal employees can find centralized information on various protections and programs, including critical safeguards under Maryland law against foreclosure, eviction, and utility service interruptions for electric and gas. Additionally, the state's resources detail partnerships with local credit unions and banks, which aim to provide low-interest loans and other forms of financial assistance to federal workers facing hardship. Crucially, the Maryland Department of Labor’s shutdown loan program details are also accessible through this website, ensuring affected individuals can easily find application information for the $700 no-interest loans. ## Key Questions **Who is eligible for the $700 no-interest loan?** Maryland residents who are federal employees designated as “excepted” and are working without pay during the current federal shutdown are eligible. Applicants who received a loan in Fall 2025 must have repaid it in full. **How does the current program compare to previous shutdowns?** Since its reactivation in February 2026, the program has disbursed $35,000. For comparison, during the October-November 2025 shutdown, the program issued over 3,400 loans totaling more than $2.4 million. **What other state support is available to federal workers?** Maryland offers a comprehensive resource website detailing protections against foreclosure, eviction, and utility service interruptions, alongside information on low-interest loans from credit unions and banks.