Frerichs Launches $50 Million Loan Program to Aid Unpaid Federal Workers During Shutdown (Springfield, IL) – Illinois State Treasurer Michael Frerichs has announced a $50 million emergency loan program to help unpaid federal employees weather the ongoing government shutdown.
The Federal Workers Emergency Loan Program will provide zero-interest and low-interest loans through participating banks and credit unions statewide, including Great Lakes Credit Union (GLCU), which operates 20 branches in the Chicago area and downstate Danville.
“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.”
The program is expected to assist many of the 153,000 federal employees living and working in Illinois, though it remains unclear how many have missed paychecks since the shutdown began Oct. 1.
Under the plan, the Treasurer’s Office deposits funds into participating financial institutions at minimal interest rates—such as 0.01 percent—on the condition that those institutions make zero- or low-interest loans available to federal workers. Rates and eligibility requirements will vary by lender.
Patrick Basler, Chief Experience Officer at Great Lakes Credit Union, said GLCU was eager to join the program. “Helping those in need is at the heart of our Banking for a Greater Good mission,” Basler said. “We welcome the opportunity to provide financial solutions for federal employees during this challenging time.”
Frerichs criticized federal leaders for allowing the shutdown to harm public servants. “Using federal employees and their families as political leverage is just plain wrong,” he 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.”
The Treasurer’s Office is inviting additional banks and credit unions to participate in the program. Interested institutions must be approved depositories and can contact investinillinois@illinoistreasurer.gov for more information.
Frerichs’ office has offered similar linked-deposit programs in the past, providing below-market loans to farmers, small businesses, and others in need. The Treasurer’s Ag Invest initiative, for example, has loaned more than $6 billion to agricultural businesses since 1983.
The new program follows previous emergency lending efforts Frerichs established during the COVID-19 pandemic, earlier federal shutdowns, and Illinois’ own budget impasse, each aimed at helping residents stay afloat through financial disruptions.
Frerichs Launches $50 Million Loan Program to Aid Unpaid Federal Workers During Shutdown
