Maryland Opens Emergency Loan Program for Former Federal Workers

Maryland has launched a new emergency loan program to support former federal employees experiencing financial hardship following job loss, providing short-term relief as broader workforce support efforts continue.

The Maryland Department of Labor has launched the Federal Emergency Loan Program, offering interest-free loans to former federal workers who are facing financial hardship due to layoffs, closures, or relocations. The online application portal opened on Wednesday, June 5.

The General Assembly established the program through the Protect Our Federal Workers Act, enacted earlier this year, to support Maryland residents who have been affected by federal job losses.

Eligible applicants can now apply for a $700 no-interest loan, with repayment due 180 days after signing the loan agreement. Borrowers may request a 90-day extension if hardship continues.

To qualify, applicants must:

  • Be Maryland residents;
  • Have lost federal employment on or after January 1, 2025, due to layoff, closure, relocation, or similar involuntary separation within the past six months; and
  • Be experiencing financial hardship, such as difficulty paying for housing, utilities, healthcare, childcare, transportation, or similar expenses.

The Department of Labor will administer the program and verify eligibility through documentation and applicant attestations. The loan application is available online, with additional information on the Maryland Department of Labor website.

Counties are monitoring the ripple effects of federal workforce reductions, especially in areas with considerable concentrations of federal employees and contractors. In addition to the State’s loan program, several counties are hosting job fairs, offering workforce support services, and partnering with local organizations to assist affected residents.

Emergency support programs like this one provide short-term assistance while broader efforts continue to connect displaced workers with reemployment and retraining opportunities.

For questions, applicants may contact MDfedworkerloan@submittable.com or call 410-541-1075 during weekdays from 9:00 am to 5:00 pm.

Visit the Maryland Department of Labor website for more information.