Shutdown + Inflation: Unemployment & Relief Options for Federal Workers

• Author: Jean Bergnaum II
• Posted: 2025-10-19

Government shutdown impacted hundreds of thousands of federal workers, leaving many wondering how to cover their expenses, especially as inflation continues to raise everyday costs.

If agencies close and employees are furloughed, unemployment benefits may offer temporary financial relief.

You might be missing out on benefits! Check what’s available to you here.

Here’s what federal workers need to know.

 

How Furloughed Workers Can Apply for Unemployment

Furloughed federal employees may qualify for Unemployment Compensation for Federal Employees (UCFE), which operates under the same rules as state unemployment insurance.

To apply, you’ll likely need:

• Proof of wages (Earnings and Leave Statement or Form SF-50)

• Possibly Form SF-8 for claim processing

• Online or in-person application with your state unemployment agency

Most states pay up to 26 weeks of regular unemployment benefits. Payments usually begin within 14–21 days after filing a claim.

Find your state contact here: http://www.servicelocator.org

 

What About “Essential” Employees?

“Essential” employees (e.g., military personnel, law enforcement, emergency services, postal workers, Social Security and Medicare staff) typically remain ineligible for unemployment because they continue working.

However, if their positions are affected later by a funding lapse, they may qualify for UCFE at that point.

 

Inflation and the Need for Financial Relief

A shutdown can make it harder for households to manage expenses when inflation is already squeezing budgets.

Everyday costs like groceries, rent, and utilities continue to rise, leaving furloughed workers with fewer options.

Here are some inflation relief programs and resources to explore while waiting for benefits:

• U.S. Department of Labor – Unemployment insurance support

• U.S. Department of Agriculture – SNAP food assistance

• U.S. Department of Health and Human Services – LIHEAP for utility cost relief

• Internal Revenue Service – Earned Income Tax Credit (EITC)

These programs can help cushion the impact of lost wages during periods of high inflation.

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