Comptroller Announces Tax Relief for Federal Workers Amid Shutdown

As the federal government shutdown drags on, Comptroller Brooke Lierman announced new tax relief measures to help Maryland’s federal workers weather the financial strain.

Maryland Comptroller Brooke Lierman today announced new state tax relief measures for federal workers affected by the ongoing federal government shutdown. The Comptroller’s Office will defer state tax payment plans for employees who cannot meet their obligations while paychecks remain on hold.


Top 10 Maryland counties by federal jobs and spending. Federal wages, contracts, grants, and direct payments collectively drive billions of dollars into local economies, with Montgomery and Prince George’s counties leading the list; significant exposure is also evident across the state. (Source: Office of the Maryland Comptroller).

“We recognize the financial strain this shutdown is placing on hardworking Marylanders, many of whom are working without a paycheck,” said Comptroller Lierman. “Our office is committed to doing everything we can to ease that burden and ensure families can stay afloat while the federal government remains at a standstill.”

As previously reported on Conduit Street, MACo has offered a deeper look at the ripple effects of federal government shutdowns.

Federal employees may request a deferment by emailing GovShutdownRelief@marylandtaxes.gov with their full name, address, last four digits of their Social Security number, and case or payment plan identification number. The deferment will last for the duration of the shutdown and continue up to 60 days after it ends, giving affected workers time to regain financial stability.

The Comptroller’s Office is also partnering with the Maryland Department of Labor to process payments through the Federal Worker Emergency Loan Program, which provides short-term loans to cover essential expenses during the shutdown.

This shutdown — now among the longest in US history — continues to create economic uncertainty for thousands of Maryland households and local governments.

As previously reported on Conduit Street, counties have significant numbers of residents employed by federal agencies or contractors, and prolonged disruptions can ripple through local economies, affecting spending, small businesses, and tax revenues.

Visit the Comptroller of Maryland website for more information.

Useful Links

Previous Conduit Street Coverage: Counties Urge Swift End to Federal Shutdown

Previous Conduit Street Coverage: Shutdown Countdown: State Leaders Outline Risks and Response

Previous Conduit Street Coverage: Deep Dive: Budget Brinkmanship — Q&A Explainer on Shutdown Stakes for Maryland

Conduit Street Podcast: Revenues, Roads, and Rising Risks

Previous Conduit Street Coverage: Federal Government Shutdown Odds Rise, Maryland Faces Big Risks

MACo Winter Conference Session: Preparedness in Peril — Rethinking Readiness as Federal Stability Falters

As the federal government shutdown continues, counties face the real-world challenges of maintaining essential services amid fiscal uncertainty. Federal funding disruptions ripple through local budgets, workforce programs, and emergency preparedness systems, testing county resilience and adaptability.

At this year’s MACo Winter Conference, local, state, and national emergency management leaders will unpack the cascading impacts of prolonged federal instability. Panelists will discuss practical strategies to sustain readiness, coordinate across levels of government, and safeguard critical services despite ongoing funding and operational uncertainty.

This session offers insight into how counties can prepare for — and persist through — fiscal turbulence when federal systems stall, reinforcing the importance of long-term planning and intergovernmental cooperation.

MACo’s Winter Conference, “Local Leadership, Lasting Impact: Shaping What’s Next,” will be held at the Hyatt Regency Chesapeake Bay Hotel in Cambridge, MD, on December 10-12, 2025. 

Learn more about MACo’s Winter Conference: