Financial Assistance for Federal Employees During the 2025 Government Shutdown

Last updated 2 weeks ago. Our resources are updated regularly but please keep in mind that links, programs, policies, and contact information do change.

During the 2025 government shutdown, the law provided back pay for employees on furlough, meaning temporarily off duty and without pay, and for those required to keep working. Workers waiting for that pay still had bills due.

A federal employees’ nonprofit gave grants of $150 for essentials. Loans tied to a paycheck and unemployment benefits could leave repayment obligations after wages resumed.

What the 2025 shutdown meant for pay

The 2025 government shutdown ran from October 1 to November 12. That shutdown is over, and some of the offers described here have closed, but the rules below show what to check before taking similar help in another shutdown.

The shutdown, a lapse in government funding, began October 1, 2025. Legislation enacted November 12, 2025 restored funding, for most agencies through January 30, 2026. A partial funding lapse began January 31, 2026; legislation enacted February 3 restored funding for affected agencies and extended Department of Homeland Security (DHS) funding through February 13. That lapse affected activities covered by six regular appropriations bills. A separate DHS funding lapse began February 14 and ended April 30, 2026. Help advertised for a completed shutdown may no longer exist, so an old application link does not mean money is still available.

Excepted employees perform work that may legally continue during a funding lapse, such as protecting life or property; agency legal counsel and senior managers determine those designations. Being required to work and being paid on the normal schedule are separate questions during a shutdown. Some agency functions have alternative funding and continue under normal pay rules, and the U.S. Office of Personnel Management (OPM) directs employees to consult their human resources office. Ask that office to confirm the individual work assignment and pay status before choosing a program intended for furloughed or excepted workers.

After the 2025 lapse, OPM said it was working with human resources offices and payroll providers to deliver retroactive pay as soon as possible.

OPM said a furloughed employee would get no retroactive pay for periods when the employee was already scheduled to be unpaid, such as leave without pay, and that excepted employees would not be paid for assigned hours missed while absent without leave. Not every unpaid hour qualified for back pay, so an unresolved payroll problem calls for an explanation from the agency.

FEEA grants and ordinary emergency loans

The Federal Employee Education and Assistance Fund (FEEA) is a nonprofit that provided small shutdown grants for essentials. On October 27, 2025, FEEA reported that nearly 3,000 eligible federal employees had received $150 grants for groceries, gas and other basic necessities. The grants were limited to direct-hire civilian federal employees who were furloughed or working in excepted status, earned $59,999 or less including locality pay, and had not already received a FEEA shutdown grant during that shutdown.

On October 30, 2025, FEEA announced that it would stop accepting new shutdown grant applications because the program was nearing its funding limit.

FEEA’s separate shutdown-help page describes assistance for employees of DHS components who are not receiving pay because they are furloughed or working in excepted status. That page covers a narrower group than the general 2025 program, so read its grant instructions and confirm availability and terms with FEEA before applying.

The shutdown grant is separate from FEEA’s ordinary emergency loan, which has its own reasons for qualifying. FEEA’s ordinary loan application says not to apply when furlough or a shutdown caused the financial difficulty.

FEEA’s ordinary loan eligibility covers permanent full-time or part-time federal civilian and postal employees with more than one year of federal employment. Its loan ceiling is $2,000, and the qualifying hardship must have occurred within the preceding six months and caused the financial emergency. Qualifying hardships include an employee’s severe illness, injury or dental emergency; severe illness or injury of immediate family; a death in immediate family; major natural-disaster damage to the primary residence; or domestic violence with an immediate need for safe housing. FEEA requires applicants to collect and attach documents before an application can be submitted.

Shutdown loans depended on membership and repayment

A loan can move a paycheck forward, but the later paycheck may then have to settle the loan as well as overdue bills. On October 23, 2025, USAA, the financial services association, reported more than $300 million in relief to over 90,000 members through a program that included loans, flexible payment and fee arrangements, and financial guidance.

On January 28, 2026, ahead of a possible partial funding lapse, USAA described a no-interest shutdown loan equal to one net paycheck, up to $6,000, for members employed by an affected federal agency with a qualifying USAA direct deposit within 30 days before the shutdown. The announcement said applying would not affect a member’s credit score, but its footnote said funded and received loans would be reported to credit bureaus and might affect credit scores. Confirm current availability, the amount, the repayment schedule and any effect on credit directly with USAA before relying on it for a bill.

Federal News Network’s federal employee shutdown survival guide, published October 13, 2025, listed PenFed’s no-interest paycheck protection loan for members whose payroll was deposited directly into a PenFed checking account, with a loan equal to the paycheck. The listing is secondhand and dated, so get the offer and the repayment terms from PenFed itself.

Navy Federal Credit Union’s membership includes active-duty servicemembers, veterans, eligible family or household members, and eligible Department of Defense personnel. Navy Federal’s shutdown program FAQ limits eligibility to federal employees, contractors paid directly by the government and military service members whose pay is affected by a shutdown. The member’s last regular direct deposit into an active Navy Federal account must be at least $250, and any prior shutdown assistance that overdrew the account must have been repaid. A federal job alone is not enough: the paycheck’s route into the account also matters. These terms come from Navy Federal’s FAQ for the program; confirm with Navy Federal that the program is open and the terms still apply before relying on them.

The advance is a set amount from a table in the FAQ, based on the member’s most recent direct deposit of pay, not the full paycheck. For example, an eligible last deposit from $500.01 through $1,000 produces a $500 advance under that table.

Registration is available through navyfederal.org, the Navy Federal mobile app, or 1-888-842-6328. For disbursement on or about payday, members must register at least one day before the scheduled direct deposit; registration remains open until one business day after that scheduled deposit. Registering in that later window does not promise money on the usual payday. Navy Federal reserves the right to limit assistance to a single pay cycle or require re-enrollment if a shutdown continues.

The FAQ says there is no participation cost, no credit report obtained to evaluate eligibility and no reporting of program information to credit agencies. Navy Federal says repayment debits begin when any back pay becomes available to members by direct deposit or 60 days after the last assistance deposit, whichever is earlier. It may adjust the repayment schedule to align with back pay.

Maryland launched a $700 no-interest loan on October 6, 2025 for resident excepted federal employees required to work without pay, to help with expenses such as rent and groceries. The state’s guidelines require repayment within 45 calendar days after the shutdown ends. This state program addressed workers who kept working, a group that generally could not obtain unemployment compensation while working full time.

Maryland’s application portal says the program relaunched in February 2026 in response to a partial federal shutdown and is now closed to new applications. In a future shutdown, it says, the program will again offer $700 no-interest loans to excepted federal workers living in Maryland who have fully repaid prior program loans.

PayPal’s familiar offer was from 2019

PayPal’s shutdown offer predates the 2025 shutdown and should not be treated as a 2025 offer or a grant application. PayPal announced shutdown relief on January 18, 2019: interest-free advances up to $500 for existing or new PayPal Credit customers who were federal employees struggling to make ends meet. The company committed up to $25 million to those advances. Check an offer’s date and actual application terms before sharing it with another worker or depending on it for assistance.

Unemployment benefits could have to be repaid

The Department of Labor (DOL) says the prospect of later back pay does not make furloughed employees ineligible to apply for unemployment benefits, because they have lost work hours and wages during the furlough. Unemployment Compensation for Federal Employees (UCFE) is administered by states, and generally the law of the last official duty-station state governs eligibility under the same conditions as regular state unemployment insurance. A furlough makes a claim possible; it does not guarantee eligibility or a benefit amount.

Excepted employees who continue working full time are not eligible for UCFE, even when their pay is delayed. Excepted intermittent employees working less than full time may qualify for partial benefits depending on their hours or wages. The key difference is the loss of work, rather than the inconvenience of a delayed paycheck.

DOL’s November 2025 unemployment questions and answers directs federal workers to file in the state of their last official duty station, as shown on the most recent Standard Form 50. Standard Form 50 is the Notification of Personnel Action, which records employment information. Its exceptions point to the state of last employment for someone who worked after leaving federal employment, or the state of residence when the last official duty station was outside the United States. Check the duty-station entry instead of assuming the home address determines where to file, and ask the state agency about an unusual employment history. DOL’s filing page connects readers to state program information and explains that claims may be filed in person, by telephone or online depending on the state.

DOL says applicants normally provide Standard Form 8 or Standard Form 50, but shutdown staffing can delay documents and wage verification, so states are encouraged to use affidavits supported by earnings and leave statements. Standard Form 8 is the Notice to Federal Employee About Unemployment Compensation. Contact the state unemployment agency about the documents it will accept instead of assuming a missing federal form prevents an application. UCFE eligibility determinations carry appeal and fair-hearing rights under the applicable state law. If a claim is denied, follow that state’s appeal instructions and deadline.

DOL warns that workers may have to repay all UCFE received after back pay arrives, and that wages may be garnished to recover it if state law permits.

Food, housing and utility help had separate rules

The Supplemental Nutrition Assistance Program (SNAP), formerly called food stamps, helps people with low incomes pay for food; applicants must meet their state’s requirements, which take into account income limits and money in the bank. Applications go through a state or local SNAP office, with submission methods varying by state and a possible interview before approval. A federal furlough does not bypass the household eligibility review. For households that qualify for faster processing, called expedited service, the general SNAP rule requires benefits to be available within seven calendar days after application, with separate provisions for months when benefits are suspended or canceled.

On October 27, 2025, North Carolina warned that November SNAP benefits would be delayed if the federal shutdown continued, because the state had not received the necessary funding. North Carolina’s notice showed that food assistance was itself exposed to the shutdown, so the usual timetable was not guaranteed there. Check the state office’s operational notice alongside its application instructions during another shutdown.

The 211 referral service connects callers with a local specialist and maintains information about local assistance for food, housing and financial needs. Call 211 when the immediate problem is a particular bill or a lack of food, so the search starts with the need rather than the name of a shutdown program.

The Low Income Home Energy Assistance Program (LIHEAP), which helps pay energy bills, directs households to local or tribal offices to check eligibility and obtain help applying. For a tribal household, contact both offices to find out which serves the household.

The Consumer Financial Protection Bureau (CFPB) advises borrowers worried about missing a mortgage payment to call the company that handles their mortgage payments, known as the servicer, right away. It also advises contacting a housing counseling agency approved by the Department of Housing and Urban Development for free help avoiding foreclosure. The servicer will need an explanation of why payment cannot be made, whether the problem is temporary or permanent, and the borrower’s income, expenses and assets. Mention any expected back pay in that conversation, because a short-term cash gap and a lasting inability to pay are different problems.

Mortgage forbearance temporarily pauses or reduces payments but does not erase the debt, and missed or reduced payments must be repaid. Ask about the repayment arrangement as well as the temporary pause before accepting a hardship plan.

Health coverage, existing TSP loans and outside work

OPM’s 2025 guidance said Federal Employees Health Benefits (FEHB) and Postal Service Health Benefits (PSHB) coverage continued through the funding lapse despite missing premium payments. Employees returning to pay status repay their accumulated FEHB premium share through payroll withholding.

The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and members of the uniformed services. VA explains that TSP loan payroll deductions stop during furlough and must restart when pay resumes. TSP’s loan booklet directs borrowers affected by a government shutdown to its separate shutdown instructions. Employees can also make payments directly to TSP during furlough, and VA directs them to TSP’s shutdown guidance for updated information. Check the current TSP instructions for the loan before treating a missing deduction as permission to stop paying indefinitely.

Furloughed workers remain federal employees subject to outside-employment ethics rules, and additional laws or agency rules may prohibit some activities or require prior approval. Consult the agency ethics office before taking outside work.

Verify the offer before committing the back pay

The Federal Trade Commission warns that legitimate lenders will not promise a loan without knowing the applicant’s credit history and then demand payment first. Real lenders can require an application or appraisal fee, but no legitimate lender says paying a fee guarantees a loan.

Before applying, identify whether the help is a grant, a loan, a benefit that may be recovered, or a temporary delay in a bill. Then ask which payment will settle the obligation and when it becomes due.