Illinois State Treasurer Michael Frerichs has announced a $50 million initiative to support federal employees impacted by the ongoing government shutdown. The funds will provide zero-interest and low-interest loans through a network of participating banks and credit unions across the state. It’s estimated that approximately 153,000 federal workers in Illinois have been affected, facing missed paychecks as the shutdown continues. The move aims to offer immediate financial relief, helping families cover essentials such as rent, groceries, and utilities. Details about eligibility and application processes are available on the state treasurer’s website and at participating financial institutions.
“It is truly disheartening that a D.C. dispute over the right to affordable health care has reached a point where the federal government has locked out some workers and forced others to continue working without pay,” Frerichs said. “Our no-interest loan program aims to provide much-needed relief to workers, ensuring they can feed their families, pay their mortgage, and stay current with electric and water bills.”
“We are excited that Treasurer Frerichs created this opportunity,” said Patrick Basler, Chief Experience Officer at GLCU. “Helping those in need is at the heart of our Banking for a Greater Good mission. We welcome the opportunity to provide financial solutions for federal employees during this challenging time.”
Participating banks and credit unions across Illinois will offer zero-interest and low-interest loans to help approximately 153,000 affected workers. The Treasurer’s Office will deposit funds at just 0.01 percent interest if a financial institution agrees to lend at zero percent to federal employees. Loan rates, eligibility requirements, and terms may differ depending on the institution. This initiative is designed to provide immediate financial relief to those who have missed paychecks as the shutdown drags on.
“Using federal employees and their families as political leverage is just plain wrong,” Frerichs said. “Despite the significant disagreements on difficult issues we must acknowledge that federal workers are public servants and should not be punished during this impasse.”
Financial institutions now have the opportunity to support Illinois’ Federal Workers Emergency Loan Program by becoming approved depositories. The initiative is designed to assist federal workers during times of financial hardship by providing access to emergency loans. Banks and credit unions interested in joining the program are invited to reach out to the Illinois Treasurer’s Office for more information or to begin the application process. To express interest or request further details, institutions should email [email protected]. The Treasurer’s Office emphasizes that expanding the network of approved lenders will help ensure timely aid for federal employees in need.