As the federal government shutdown continues, Maryland has launched an emergency loan program to assist federal employees who are required to work without pay.
Governor Wes Moore announced the Maryland Department of Labor’s Federal Shutdown Loan Program, now accepting applications from “excepted” federal workers — those required to continue working during the shutdown but not receiving paychecks.
The program offers a one-time, no-interest loan of $700 to help cover essential expenses, such as rent, food, and utilities. Borrowers will have 45 days after the shutdown ends to repay the loan, allowing time to process retroactive pay.
At a time when the federal government is stepping back from its most basic obligations, Maryland is stepping up to protect our people,” said Governor Moore. “The emergency support we announce today will keep public servants afloat as we enter a second week of this shutdown.
The Comptroller’s Office and the State Treasurer’s Office will assist the Department of Labor in issuing loans if the shutdown remains in effect on October 15, with payments scheduled to begin the following day.
To qualify, applicants must be Maryland residents employed by the federal government and designated as “excepted” during the shutdown. They must provide proof of identity, Maryland residency, and employment status.
The application is available at mdol.submittable.com/submit, with additional resources in English and Spanish. Support is available by email at MDshutdownloan@submittable.com or by phone at (410) 849-6424 (Monday through Friday, 9:00 am – 5:00 pm).
Furloughed federal employees — those not working or being paid during the shutdown — may qualify for temporary unemployment benefits through the Unemployment Compensation for Federal Employees program, but must repay those benefits once retroactive pay is received. Federal contractors furloughed without pay may be eligible for state unemployment insurance benefits.
As previously reported on Conduit Street, an estimated 229,000 Maryland residents work in the federal civilian and defense workforce (not including active-duty service members), with combined annual earnings of $26.9 billion. These jobs account for 6% of the state’s overall employment and 10% of overall wages — far above the national average.
Maryland’s exposure goes beyond the sheer number of federal jobs. When paychecks stop, the state’s high concentration of federal contractors (approximately 225,000) and small businesses suffer losses that they rarely recover, compounding the impact on local communities.
During the 2018–2019 shutdown, 172,000 Marylanders lost $778 million in wages. That meant $57.5 million less in state and local income tax withholding and $2.1 million less in sales tax collections. A new shutdown could deliver an even sharper fiscal shock.
Federal agencies fund many local priorities directly and through State-administered programs — from transportation and public health to emergency management. When those dollars stop flowing, counties must bridge cash-flow gaps, adjust operations, and keep residents informed as vital programs face disruption.
The Moore–Miller Administration is taking steps to ensure the continued operation of core federal programs during the shutdown, including Medicaid, SNAP, WIC, Head Start, and veterans’ services.
Maryland expects reimbursement for eligible costs once federal funding resumes, consistent with past shutdowns. Still, a prolonged closure or delayed reimbursement could strain the resources needed to maintain these essential services.
For more information on unemployment programs and additional support for federal employees and contractors, visit the Maryland Department of Labor and the State of Maryland websites.
