Due to the federal government shutdown, tens of thousands of federal employees have been left without a paycheck. In response, Illinois State Treasurer Frerichs proposes an emergency contingency linked deposit program to bridge the payment gap for federal employees.
Through the Federal Workers Emergency Loan Program, the Illinois State Treasurer’s Office is prepared to partner with credit unions and community banks throughout the state to offer zero or low-interest loans to federal employees impacted by the shutdown. Under this linked deposit program, federal employees could be eligible for an emergency loan through participating banks and credit unions beginning October 15, 2025. The Treasurer's Office is committing $50 million to this initiative.
Under this program,the State Treasurer’s Office will make deposits at a discounted rate into approved participating financial institutions, who will utlize these funds to provide zero or low-interest loans to federal workers who have not been paid due to the federal government shutdown and meet their qualified standards. For additional basic information regarding this program, please see the Federal Workers Emergency Loan Program Flyer.
Become an Approved Depository
Financial institutions interested in participating in the Federal Workers Emergency Loan Program must become an approved state depository. Should you have any questions, please contact the Treasurer's Office at 217.558.6217.
Specific deposit terms will be determined in negotiations between financial institutions and the Illinois State Treasurer’s Office.
- If a financial institution is willing to provide zero-interest loans, we will place deposits at the rate of 0.01% during the government shutdown and up to 90 days after federal government shutdown is resolved.
- If a financial institution is willing to provide low-interest loans, we will place deposits at the current linked deposit rate during the government shutdown and up to 90 days after the federal government shutdown is resolved.
- Capital will be loaned for 3-month periods, with renewal options while the shutdown continues.
Financial Institutions contact our office to request Federal Worker Emergency program loan applictions at rhuston@illinoistreasurer.gov.
Federal Workers in Need of Emergency Loans
Please contact our office for a list of particaping lenders or if you have any questions pertaining to the program at rhuston@illinoistreasurer.gov.
Access to Capital and Linked Deposit Daily Rates
Click here to access rates approved for financial institutions participating in the Treasurer's Linked Deposit or Access to Capital Programs, including the Federal Workers Emergency Loan Program.