State of Maryland Launches Loan Program for Former Federal Employees

Calling it “the latest chapter in our work to ensure our federal workers get the support they need,” Maryland Gov. Wes Moore recently announced a new initiative designed to provide the state’s displaced federal workers with a way to apply for emergency, no-interest loans.

Created through the Protect Our Federal Workers Act, which Moore signed into law in April, the Federal Emergency Loan Program opens an online portal for qualified federal employees to apply for $700 loans that must be repaid 180 days after the loan agreement is signed. Loan applicants have an option to apply for a 90-day extension if financial hardship persists, according to Moore’s office.

Former federal employees must meet a number of criteria to qualify for the loans. For example, applicants must provide proof they are a resident of Maryland. They must also be able to prove they were terminated from federal employment as part of a mass layoff, relocation or closure of a unit of the federal government, or similar circumstances beyond their control.

The applicant’s termination from federal employment must have occurred within the six months before applying for the loan and on or after Jan. 1, 2025. Finally, the displaced federal employee applying for the loan must prove they are experiencing financial hardship—difficulty making on-time payments for a mortgage or rent, utilities, healthcare, childcare, car loan or car insurance, credit cards or loans, or other household expenses, for instance.

“Marylanders who are facing financial hardship due to the loss of federal jobs have dedicated their lives to public service. It’s essential that we support them during this challenging time,” said Maryland Department of Labor Secretary Portia Wu, in a statement.

“This loan program is an important piece of Maryland’s larger effort to respond to federal job loss, providing emergency financial assistance while we are also working to connect thousands of Marylanders to new job opportunities and help with career transition.”