Government Shutdown: What Can Federal Workers Do If They Can't Pay Their Bills?

The United States government requires that Congress earmark money to pay for many of its functions. Those set-asides, or appropriations, happen when Congress passes bills.

Not all government workers are paid through annual appropriations. When Congress does not pass a funding bill, they can keep working and get paid as normal. 

Nearly 3.5 million people are missing paychecks during the 2025 shutdown. Some must keep working but won't be paid until after the shutdown ends. At that time, they get back pay for all the time they worked. 

Others are sent home (furloughed) and don’t have to work, but are still promised back pay thanks to a 2019 law.

This means many federal workers find their income is cut off entirely for the duration of the shutdown. This can lead to financial problems and cause some workers to be unable to cover essential expenses or pay back debts. 

So, what can federal workers do in these situations? Are there options for debt relief or sources of short-term help they can rely on? This guide will explain.

Apply for Unemployment Benefits

Some federal workers who are not able to report to their jobs during a shutdown may be entitled to unemployment benefits, according to the AFL-CIO. This applies to those who are prevented from working.

If you're a federal worker who can't go to your job, check out the AFL-CIO resources to find out how to apply for unemployment in your state. 

Be aware, though, that you'll typically get back pay at the end of a government shutdown. When that happens, you'll be required to pay back the unemployment benefits. The benefits essentially function as a short-term loan.

Apply for a Grant

The Federal Employee Education & Assistance Fund offers relief to federal workers during a shutdown as well. 

While its Emergency Hardship Loan program won't cover losses during a government shutdown, there is a Shutdown Grant for furloughed civilian (non military) federal employees who earn $59,999 or less (or $75,000 or less for active employee NARFE members). 

Grants usually don't have to be paid back, unlike when you get a personal loan to cover costs. 

Tap Into Your Emergency Fund

If you aren't eligible, or grants and unemployment benefits don't entirely cover your costs, you might still struggle to pay the bills without going into credit card debt. Before you start borrowing, though, tap into your emergency fund if you have one.

Ideally, you'll have an emergency fund large enough to cover living expenses for several months. If you can reduce what you're spending and you have a generous emergency fund, you can cover your costs and more or less maintain your lifestyle during the shutdown. 

Government shutdowns usually last for a relatively short period of time, so this is the type of situation where an emergency fund may be able to pull you through. Once you get back to work and the shutdown ends, you can replenish your emergency fund until the next time you need it.

Use a 0% APR Credit Card

If you can't get through the shutdown without borrowing, consider looking into a credit card with a 0% promotional APR on purchases. 

With this type of card, you would not incur interest costs on purchases right away. Depending on the card's policies, you may get a 0% APR for 12 to 15 months, which should be more than enough to get you through the government shutdown.

If you go this route, get familiar with the terms and conditions of the card. You want to know how long the 0% rate lasts and whether there are upfront fees, like an annual fee. You also need a clear plan to pay back the money because many people start borrowing during an emergency situation and then the debt payments eat up their income, making it very hard not to borrow again in the future.

Reach Out to Your Creditors

If none of these options work and you are struggling to pay bills for things like your mortgage or car loan, you should be proactive in reaching out to your lenders. 

Many creditors have told federal workers that they are willing to be flexible during the shutdown. This could mean creditors allow federal employees to pause payments temporarily or create a payment plan that's affordable until the government reopens.

The specific types of debt relief that your creditors will make available depends on their policies and processes. Contacting them ASAP could help you avoid late payments that damage your credit score. And the sooner you reach out, the more time you have to find a solution. 

Be Proactive During and After a Government Shutdown

A government shutdown that pauses your paychecks can undoubtedly throw a wrench into your finances. If this happens to you, be sure to explore these options.

If you do find yourself getting too deeply into debt during the shutdown, you could also consider solutions such as debt settlement or working with a debt expert to help you get credit card debt relief so you can get back on track with your financial situation once your regular paychecks begin again.