Illinois Commits $50 Million to Aid Unpaid Federal Workers During Shutdown

The Treasurer of Illinois has announced a zero-interest, low-interest loan program that provides $50 million to help unpaid federal workers.

Relief for Unpaid Federal Workers Amid Ongoing Shutdown

According to the press release from Illinois State Treasurer Michael Frerichs, the funds will be distributed through participating banks and credit unions across Illinois via the Treasurer's linked-deposit program.

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An estimated 153,000 federal workers live and work in Illinois, though the exact number of residents impacted since the shutdown began remains unclear.

Linked-Deposit Program Supports Financial Stability

According to the Treasurer, this initiative is designed to help affected families stay financially afloat during the government closure.

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. -Michael Frerichs, Illinois State Treasurer

One of the participating lenders is Great Lakes Credit Union, which has 20 branches around Chicagoland. Their Chief Experience Officer, Patrick Basler, said that "helping those in need is at the heart of our Banking for a Greater Good mission."

How the Program Works

Under the program, the Treasurer's Office deposits money into approved financial institutions at 0.01 percent interest, with the expectation that banks lend it to federal workers at zero percent or other below-market rates.

Participating lenders may set specific terms and eligibility requirements, according to the press release.

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Illinois State Treasurer Frerichs said that "using federal employees and their families as political leverage is just plain wrong."

Financial institutions interested in joining this initiative can contact the Treasurer's Office at investinillinois@illinoistreasurer.gov for more information.