Carson Swick
The Baltimore Sun
(TNS)
Maryland is now accepting loan applications for federal workers who are working without pay during the ongoing government shutdown, the state Department of Labor announced Monday. The loan application is available at mdol.submittable.com/submit.
Teased by Comptroller Brooke Lierman and other state leaders last week, the new “Federal Shutdown Loan Program” will offer $700 loans to Maryland-based employees who are designated as “excepted” federal workers — meaning they are required to work without pay during the shutdown and not eligible for unemployment aid. Paid out by the Maryland Treasury, the loans will help workers cover living expenses, according to a Department of Labor news release.
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“During a federal shutdown, Marylanders need action, not delay,” Lierman said in the release. “This loan program helps federal workers cover essentials like food, bills, and fuel while they await their paychecks.”
Funds will only be distributed if the shutdown continues through Oct. 15, with payments scheduled to begin going out Oct. 16. Federal workers’ next scheduled pay date is Oct. 15, according to the U.S. General Services Administration.
“Loan payments will only be issued if the shutdown is still in effect on October 15 because it is still possible that the federal shutdown could end more quickly and federal employees would receive their retroactive pay shortly thereafter,” Dinah Winnick, the Department of Labor’s communications director, told The Baltimore Sun.
Employees who receive a $700 loan must repay it at no interest within 45 days of the government shutdown ending. The Department of Labor will send 30-, 60-, and 90-day notices, with the Maryland Department of Budget and Management’s Central Collections Unit empowered to set up payment plans for employees who do not repay their loans, Winnick said.
Maryland has lost more than 15,000 federal jobs so this year, according to a Department of Labor report last month. The losses come as President Donald Trump takes aim at the nationwide federal workforce as a means to reduce government spending.
“At a time when the federal government is stepping back from its most basic obligations, Maryland is stepping up to protect our people,” Gov. Wes Moore said. “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.”
To qualify, applicants must provide proof of Maryland residency, ID and employment by the federal government. The loan application is available at mdol.submittable.com/submit.
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©2025 The Baltimore Sun. Visit at baltimoresun.com. Distributed by Tribune Content Agency, LLC.
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