November 3, 2025 – Illinois State Treasurer Michael Frerichs is committing $50 million to fund zero-interest and low-interest loans to unpaid federal workers during the government shutdown.
The loans will be issued through participating banks and credit unions across Illinois with money made available through the Treasurer’s linked-deposit program. An estimated 153,000 federal employees live and work in Illinois. It is uncertain how many are not receiving their salaries since Oct. 1, when the shutdown began.
“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.”
Here’s how the no-interest loan program works: The Illinois Treasurer deposits money in financial institutions for the specific purpose of helping unpaid federal workers. In turn, the financial institutions loan that money to federal workers at below-market rates. The Treasurer’s Office will deposit money at 0.01 percent if the financial institution agrees to loan out the money to federal workers at zero percent. Other rates might also be available. Specific rates and terms of eligibility will vary by financial institution.
“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 interested in participating in the Federal Workers Emergency Loan Program must become an approved depository. Interested parties are encouraged to contact the Treasurer’s Office at investinillinois@illinoistreasurer.gov.
Frerichs provided similar loan programs during other times of need, including loans to businesses impacted during the height of the COVID-19 epidemic, previous partial federal government shutdowns, and furloughed workers during a state budget impasse.
