A bill has been signed into law in Connecticut allowing the state to back no-interest loans for federal workers working without pay during the ongoing shutdown.  The loans will be provided by banks or credit unions working with the state.  Impacted employees could get up to one month’s net pay, capped at $5,000.  Participating banks and the state will work with impacted employees to provide additional funds if the shutdown continues longer. 

15 House members and one in the Senate voted against the bill, saying Connecticut should not be in the business of backing loans for anyone. 

Danbury Senator Julie Kushner says it would be a mistake to characterize the bill as a bailout because the employees are guaranteed to get back pay, so there shouldn't be a default.  She says this is a critical time to assist people who are in need through no fault of their own.  She notes particularly with the cold snap and utility outages over the weekend, families didn't have the luxury of going to a hotel to escape the cold.

This was Ned Lamont's first bill to be signed into law as governor.  Lamont said he is proud that the first bill he signed into law has strong bipartisan support, was created through a collaboration with the state’s business community.

Approximately 1,500 federal employees in Connecticut are impacted by the partial government shutdown, with 260 at Danbury FCI alone. 

Only furloughed employees who are not allowed to work can file for unemployment while those working without pay are considered ineligible for benefits.