Maryland Expands Shutdown Loans for Unpaid Federal Workers | The Locally Times
The state's Federal Shutdown Loan Program, reactivated in February, has already disbursed $35,000 in no-interest loans, with 42% of applicants coming from TSA.
Maryland's federal workforce, grappling with the financial strain of a government shutdown, received a renewed lifeline today as Governor Wes Moore authorized a second payment for the state's Federal Shutdown Loan Program. The program offers crucial financial relief, providing $700 no-interest loans to Maryland residents who are federal employees designated as "excepted" and working without pay. Since its reactivation in February 2026, the program has disbursed $35,000 in loans. Transportation Security Administration (TSA) employees represent 42 percent of current applicants, highlighting the program's direct impact on critical federal personnel and the immediate need for assistance. The Maryland Department of Labor oversees this initiative, designed to provide a vital financial safety net for families facing income disruptions. ## A Lifeline for Maryland's Excepted Federal Employees The Maryland Department of Labor reactivated the Federal Shutdown Loan Program in February 2026, responding to a partial federal shutdown specifically impacting the Department of Homeland Security. This program targets "excepted" federal employees who are required to report to work but do not receive their regular paychecks. These workers face particular financial vulnerability because, unlike other impacted employees, they are not eligible for unemployment insurance benefits. The $700 loan amount directly assists with daily needs for these workers and their families. ## Historical Precedent and Broader State Support The Federal Shutdown Loan Program has a history of supporting Maryland's federal workforce, originally established by the Maryland General Assembly in 2019. The program was previously activated during an October-November 2025 shutdown. In that period, the program issued 3,483 loans, totaling $2,438,100, to more than 2,000 excepted federal employees. Two-thirds of borrowers during the fall 2025 shutdown received a second loan, indicating sustained need. For the current shutdown, the Maryland Department of Labor requires applicants who received a loan during the fall 2025 shutdown to repay that previous loan in full before applying for new assistance. Beyond direct financial assistance, the state has reactivated its Maryland Workers Impacted by the Federal Government Shutdown resource website. This online portal centralizes information on various protections and programs available to federal workers experiencing financial strain. Key protections highlighted on the site include foreclosure and eviction protections mandated under Maryland law, as well as electric and gas utility service protections. The website also provides information on partnerships with local credit unions and banks, which offer low-interest loans and additional financial assistance options. These comprehensive state resources aim to stabilize federal employees and their families during periods of federal government uncertainty. ## Key Questions **Who is eligible for these loans?** Maryland residents who are federal employees designated as "excepted" and working without pay during a federal government shutdown are eligible. **How much can an eligible federal worker receive?** The program provides $700 no-interest loans to eligible federal workers. **What other state support is available for impacted federal workers?** Maryland offers protections against foreclosure, eviction, and utility service disconnections, and provides information on partnerships with local financial institutions for additional assistance.