Illinois Treasurer Offers No-Interest Loans to Federal Workers Amid Shutdown

As the government shutdown continues, Illinois Treasurer Michael Frerichs has stepped in to provide relief to federal workers living and working in the state. Since the shutdown began on October 1, a large majority of federal employees, estimated to be around 153,000, have not received paychecks, forcing them to work without pay. In response, Frerichs has announced a $50 million no-interest loan program, aimed at helping these workers meet their basic needs and avoid financial hardship.

The program will be distributed through participating banks and credit unions in the state, using the treasurer's linked-deposit program. The loans will be offered at below-market rates, with specific terms and eligibility criteria varying by financial institution. Frerichs has emphasized that the program is designed to provide much-needed relief to federal workers and their families, who should not be punished for the ongoing dispute in Washington.

Key Takeaways:

• The Illinois Treasurer's Office has committed $50 million to a no-interest loan program for federal workers affected by the shutdown.
• The program will be distributed through participating banks and credit unions in the state, using the treasurer's linked-deposit program.
• The loans will be offered at below-market rates, with specific terms and eligibility criteria varying by financial institution.
• The program aims to provide relief to around 153,000 federal employees living and working in Illinois.
• The Illinois Treasurer's Office has compared this program to others, such as the Ag Invest program, which has loaned over $6 billion to farmers and ag-related businesses since 1983.
• The program is designed to help federal workers meet their basic needs and avoid financial hardship, with the goal of ensuring they can feed their families, pay their mortgage, and stay current with bills.

Statistics:

• $50 million: The amount committed to the no-interest loan program.
• October 1: The date the government shutdown began, resulting in unpaid salaries for federal employees.
• 153,000: The estimated number of federal employees living and working in Illinois who have not received paychecks since the shutdown.
• 0.01 percent: The rate at which the Illinois Treasurer's Office will deposit money in financial institutions for the specific purpose of helping unpaid federal workers.
• 1983: The year the Ag Invest program began, which has loaned over $6 billion to farmers and ag-related businesses.
• $6 billion: The total amount loaned through the Ag Invest program since its inception.

Sources:

• Social Security announces 2.8% COLA starting Dec. 31, boosting benefits for 75 million
• Illinois 'right-to-die' bill awaits Senate action after House passage
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