Maryland Department of Labor Reactivates Loan Program for Essential Employees Who Are Working Without Pay Amid Partial Federal Government Shutdown

BALTIMORE, MD (February 23, 2026) – In response to the most recent partial federal government shutdown, the Maryland Department of Labor has reactivated Maryland’s Federal Shutdown Loan Program. This program provides a no-interest $700 loan for Maryland’s “excepted” federal workers as a financial bridge for federal employees who are being required to work without pay. The current partial shutdown impacts employees of the Department of Homeland Security whose pay is not covered by other funding sources.

During the broader October–November 2025 shutdown, Maryland provided 3,430 interest-free Federal Shutdown Loans to excepted federal workers across multiple agencies. Maryland also provided unemployment insurance benefits to more than 3,400 furloughed federal workers throughout that shutdown.

“At moments like this, the Federal Shutdown Loan Program and unemployment insurance are critical to helping federal workers pay rent and put food on the table,” said Maryland Department of Labor Secretary Portia Wu. “These support programs can’t take the place of a paycheck, but they can help relieve some of the burden that the affected workers are facing, particularly with this coming right on the heels of the longest shutdown in our nation’s history.”

The loan application portal is now open at mdol.submittable.com/submit. Loans will only be issued if the shutdown is still in effect on March 3. 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 or around March 3.

Maryland will continue to offer a broad range of support for federal employees and other workers impacted by federal actions, including layoffs. Examples of these resources include:

• 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 2,000 workers to date
• Job fairs and recruitment events
• Unemployment insurance
• Information on financial assistance through credit unions
• Resources for veterans
• Legal resources
• Resources related to health coverage, housing, and food, cash, and other assistance

For updates on the Federal Shutdown Loan Program and other support for federal workers and other workers impacted by federal actions, please see the Maryland Department of Labor’s dedicated webpage and the State’s dedicated webpage.

MEDIA CONTACT:
Dinah Winnick