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Federal Workers face Unemployment Hurdles as Shutdown Drags On
the ongoing government shutdown is creating important financial hardship for federal employees, with thousands struggling to access unemployment benefits despite being furloughed. Many are caught in a bureaucratic web,facing delays and denials due to verification issues,while grappling with the uncertainty of back pay and potential repayment obligations.
For more than two weeks, Imelda Avila-Thomas has been trying to secure unemployment compensation to cover essential expenses for her family while on unpaid furlough from her job at the Department of Labor in San Antonio. Despite submitting required documentation, the system continues to deem her ineligible, unable to verify her wages. “This would cover that – the essential basics,” Avila-Thomas explained, highlighting the critical need for assistance.
Approximately 26,000 federal workers filed initial unemployment claims between September 28 and October 18, according to data released by the Department of Labor.This represents a substantial increase, though still a fraction of the over 670,000 federal employees currently furloughed, as reported by the Bipartisan Policy Center.The amount and duration of benefits vary considerably by state.
A key concern for furloughed workers is the potential need to repay unemployment aid if thay ultimately receive back pay when the shutdown ends. While the prospect of repayment is undesirable, Avila-Thomas believes it’s preferable to incurring debt. She has even begun applying for part-time work, emphasizing she is not seeking a handout.
The complexities of unemployment benefits for federal employees stem from the reliance on state laws and processing systems. Benefit amounts differ drastically across the country: Massachusetts offers a maximum of $1,105 per week for up to 30 weeks, while Mississippi provides no more than $235 weekly for up to 26 weeks. Roughly half of all states offer a maximum weekly benefit of less than $600.
The situation is further complex by delays in verification.States are responsible for confirming employment and earnings with federal agencies, but the shutdown is hindering this process. According to the National Employment Law Project, many workers have not received the necessary forms from their employers to facilitate verification.
Work-search requirements also pose a challenge. While the Department of Labor has indicated that waivers may be available for furloughed workers due to ethical constraints on outside employment, clarity remains elusive in some states. In Texas, Avila-Thomas has yet to receive a definitive answer regarding these requirements, and fears potential conflicts of interest with available job opportunities.
Approximately 730,000 federal employees continue to work without pay, and are generally ineligible for unemployment benefits.These “excepted” employees, frequently enough in roles critical to national security or emergency response, are expected to receive back pay once the government reopens. Workers with reduced hours, however, may qualify for partial unemployment benefits.
The Trump governance initially threatened to withhold back pay, but later reversed course. Additionally, attempts to lay off over 10,000 federal workers have been blocked by a judge while a legal challenge proceeds.
Avila-Thomas, a 16-year veteran of the Labor Department, embodies the struggles of many.While her husband, a disabled veteran working for the Department of Veterans Affairs, continues to receive pay, the family has been forced to cut back on essential services like tutoring for their daughter, who has dyslexia, and rely on a local food bank.
As the shutdown continues, federal workers are increasingly eager for a resolution. “We’re ready to get back,”
