Governor Moore Announces Launch of Loan Program for Essential Federal Employees Who Are Working Without Pay During Shutdown

ANNAPOLIS, MD (October 6, 2025) - In response to the ongoing federal government shutdown, Governor Wes Moore today announced the launch of the Maryland Department of Labor's Federal Shutdown Loan Program. Now accepting applications, the program provides financial support to Maryland residents who are "excepted" federal employees (also called "essential"), meaning they are required to continue working during a federal 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," said Gov. Moore. "The emergency support we announce today will keep public servants afloat as we enter a second week of this shutdown. But no state can continue to fill the massive gap created by Washington. The president must come to the negotiating table in good faith and close a deal to open the government."

The program offers a one-time no-interest loan of $700 to help workers meet 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.

"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."

Although the Federal Shutdown Loan Program application portal opens today, loans will only be issued if the shutdown is still in effect on October 15. 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 October 16.

"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."

"Federal employees contribute significantly to Maryland's economy and to the strength of our communities," said Treasurer Dereck E. Davis. "Offering a bridge to our essential workers is not only the right thing to do-it's critical to protecting Maryland's financial health and stability. We will continue to explore every option to support Maryland families during this period of uncertainty."

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 now available at mdol.submittable.com/submit, which also includes FAQs in both English and Spanish. For support, applicants can email [email protected] or call (410) 849-6424 (Monday - Friday, 9 a.m. - 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 federal government is the largest employer in the State of Maryland. Prior to 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. Past government shutdowns have had direct repercussions in Maryland, with President Trump's 2019 partial shutdown in 2018-2019 costing thousands of Marylanders $778 million in wages.

Since the Trump Administration has taken office, Maryland has lost more than 15,000 federal jobs-the largest number in the nation. The potential mass firing of more federal workers and furloughing of tens of thousands of contractors in Maryland as the result of a shutdown will only further jeopardize Maryland's economy.

Maryland's hard-working families are already facing compounded challenges as the result of Republican-backed policies that have created the risk for nearly 250,000 Marylanders to lose their health care and more than 684,000 Marylanders-including seniors, children, and veterans-potentially seeing their food assistance cut.

As the shutdown continues, Maryland will continue to offer a broad range of supports for federal employees and other workers impacted by federal actions, such as:

• Support in finding a new job through 33 American Job Centers and a specialized Professional Outplacement Assistance Center, including individualized career guidance, résumé workshops, mock interviews, career and skills assessment, effective job search strategies, and networking support;
• Additional career resources, such as information on transitioning to a teaching career;
• A weekly virtual workshop designed specifically for former federal employees and federal contractors, and attended by more than 1,600 workers to date;
• Job fairs and recruitment events;
• Unemployment insurance;
• Resources for veterans;
• Legal resources; and
• Resources related to health coverage, housing, and food, cash, and other assistance.

The Moore-Miller Administration will also continue work to ensure that major federal programs -including Medicaid, SNAP, WIC, Head Start, and veterans' services-will continue to operate, assuming the state will be reimbursed for eligible federal expenses incurred during a shutdown, as has been the practice in previous federal shutdowns. The length of the shutdown and level of commitment from the federal government may impact the ability of these programs to continue to operate after an extended period.

The Moore-Miller Administration will work closely with the State Treasurer and the Comptroller to monitor potential impacts and communicate updates.

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The Maryland Department of Labor strives to create an equitable and inclusive Maryland where all residents have the opportunities and resources to attain financial stability, reach their career potential, and contribute to their communities; where businesses have access to capital and the skilled workforce they need to succeed; where workplaces are safe and well-regulated; and where the economy is resilient and growing. For updates and information, follow Labor on LinkedIn , Instagram , Twitter , Facebook , and visit our website .

MEDIA CONTACT:
Dinah Winnick