Resources for Federal Workers

A Note From 211

We recognize that this is a profoundly unsettling time for you and your family. If the current federal government shutdown has impacted your pay—whether you are working without compensation or on unpaid furlough—please know this: you are not alone, and help is available.

Approximately 750,000 federal employees are navigating this financial uncertainty, which can feel

overwhelming and unprecedented.

211 Santa Barbara County is here to offer calm, non-judgmental support to help you navigate this situation. We can connect you to resources and information to ease the burden during this challenging time.

What We Know So Far:

The government shutdown began on October 1, 2025, because Congress did not pass the necessary funding bills for federal agencies.
As of today, the situation remains unresolved.

What This Means For Your Work and Pay:

If your agency has designated you as "essential," you are still required to report to work, but your paycheck is delayed until the shutdown is over and funding is restored.
If you have been furloughed, you are required to be home and are also not receiving pay currently.
We know that essential expenses don't stop, like your rent, mortgage, car payments, and groceries. The purpose of this guide is to offer you calm reassurance and equip you with practical knowledge about the resources and options available to help protect your financial well-being and that of your family during this period.

Financial Lifelines: Understanding Your Loan Options

If you've never been through a shutdown before, you might not know that many banks and credit unions offer special assistance programs specifically designed for this situation.

What are "Shutdown-Specific Loan Programs"!

These are short-term, emergency loans that financial institutions create specifically for federal employees during government shutdowns. They're designed to bridge the gap to get you from where you are now to when your paychecks resume. They're different from regular personal loans in several important ways.

Many other institutions are offering similar programs with a particularly helpful feature: automatic repayment. This means when your direct deposit resumes and your back pay comes through; the loan repayment happens automatically. You don't have to remember to make a payment or worry about missing the due date.

The application process for these loans is usually streamlined because financial institutions understand you need help quickly. You'll typically need to show proof that you're a federal employee (like a pay stub or employment verification) and that you've been affected by the shutdown.

If you don't bank with a major institution that's advertising these programs, don't assume you're out of luck. Call your local bank or credit union, even smaller institutions are often creating their own assistance programs or can work with you on a case-by-case basis. When you call, explain clearly that you're a federal employee affected by the shutdown and ask: "Do you have any shutdown-specific loan programs or emergency assistance for federal workers?"

Understanding Waived Fees and Penalties

Another form of help that might not seem like much at first but can really add up: waived fees and penalties. Banks and credit unions know that when you're not getting paid, every dollar matters.

What does "waiving fees" actually mean? It means the financial institution is choosing not to charge you for certain services or situations that would normally cost you money. Here are the most common fees being waived:

Overdraft fees are usually charged when you spend more money than you have in your account, typically $30 to $35 each time it happens. During the shutdown, many banks are waiving these fees for federal employees because they understand you're not getting paid through no fault of your own.

Late payment fees on credit cards, auto loans, or other accounts are another major expense that can be eliminated. If your credit card payment is due on the 15th but you won't have money until the shutdown ends, many banks will waive that late fee (usually $25 to $40) if you call and explain your situation ahead of time.

Insufficient funds fees (also called NSF fees) occur when you don't have enough money to cover a check or automatic payment. These may also be waived during the shutdown.

Here's something important to understand: these fee waivers usually aren't automatic. You typically need to call your bank or credit union and request them. When you call, be honest about your situation. Say something like: "I'm a federal employee affected by the government shutdown. I'm currently not receiving paychecks, and I wanted to ask if you have any fee waiver programs or hardship assistance available."

Most customer service representatives are prepared for these calls right now and know exactly what options are available. If the first person you speak to isn't helpful, don't give up, ask to speak with a supervisor or a customer retention specialist.

Many banks are also dealing with heavy call volumes and long wait times. If your bank has a local branch, you may have an easier time requesting these programs in person.

What Payment Deferrals Really Mean

Payment deferrals might sound complicated, but the concept is straightforward. A payment deferral means your lender agrees to let you skip one or more payments now, and you'll make them up later. It's like hitting a pause button on your loan payments. The important thing to understand is that you still owe that money, it's not forgiven. But it gives you breathing room right now when you need it most.

When the deferral period ends, what happens next depends on your lender's policy. Some lenders will add the missed payments to the end of your loan, which means if your car loan was supposed to be paid off in late 2028, it might now be paid off in early 2029. Other lenders might ask you to catch up on the missed payments once you're back to receiving regular paychecks, perhaps by paying a little extra each month for a while.

Here's what's crucial to know: interest usually continues to accrue during a deferral period. That means even though you're not making payments, interest is still being added to your loan balance.

Payment deferrals are often available for many types of loans: mortgages, auto loans, personal loans, and sometimes even credit cards. The key is to contact your lender proactively, before you miss a payment. Lenders are much more willing to work with you if you reach out first rather than waiting until you're already behind.

When you call, explain that you're a federal employee affected by the shutdown and ask specifically: "Do you offer payment deferrals or forbearance options for borrowers experiencing temporary hardship?"

Protecting Your Home: Let's Talk About Mortgages and Rent

Your home is likely your biggest expense and your most important asset.

For Homeowners with Mortgages

If you have a mortgage, time is critical. Here's something that catches many people off guard: foreclosure timelines do not stop during a government shutdown. That means even though the federal government isn't paying you, the legal processes that could lead to losing your home don't pause.

The single most important thing you can do right now is call your mortgage servicer (the company where you send your payment each month). Don't wait until your payment is due. Don't wait until after you've missed a payment. Call them today.

When you call, you're going to ask about something called "forbearance." Forbearance is an agreement between you and your lender where they agree not to pursue foreclosure while you temporarily stop making payments or make reduced payments. It's specifically designed for situations like this, where you have a temporary financial hardship through no fault of your own.

If your mortgage is backed by FHA (Federal Housing Administration), VA (Veterans Affairs), or is a conventional loan through Fannie Mae or Freddie Mac, there may be specific hardship provisions designed to help you. Your mortgage servicer should be familiar with these programs and can walk you through any available options.

When you call, have this information ready: your loan number, proof that you're a federal employee (like a recent pay stub), and a brief explanation that you've been furloughed or are working without pay due to the government shutdown. Be clear about what you're asking for: "I need to request a forbearance or payment deferral due to the federal government shutdown. What options are available to me?"

Whatever your mortgage servicer agrees to, get it in writing. This is critical. You want documentation that shows you contacted them, what they agreed to, and the terms of any forbearance or deferral arrangement. This protects you if there's any confusion later or if you end up speaking with different representatives. For more information on mortgage payments check our website for programs that offer mortgage delinquency counseling.

One more thing about mortgages: if you're in the process of buying a home, you should know that FHA has stopped insuring some new mortgages during the shutdown, and processing of some new loans has been halted. If you're in the middle of a home purchase, contact your real estate agent and lender immediately to understand how this affects your timeline.

For Renters

If you rent your home, you're in a different situation, but communication is still key. Your landlord isn't part of a large institution with formal hardship programs, but that doesn't mean they won't work with you.

Call or email your landlord as soon as possible. Explain that you're a federal employee affected by the shutdown and that you may need to make a late payment or arrange a payment plan. Many landlords will agree to accept partial payment now and the rest when you receive your back pay, or to allow you to pay late without penalty.

Just like with your mortgage servicer, get everything in writing. If your landlord agrees to accept late payment, ask them to send you an email, text, or letter confirming this agreement. This protects both of you and prevents any misunderstandings. Search our website for organizations that provide tenants’ rights and rent payment assistance.

Taking Care of Basic Needs: Food, Utilities, and Healthcare

When your income stops, you have to prioritize.

Getting Food on the Table

If you've never needed help with food before, asking for it now might feel uncomfortable. Please hear this: there is absolutely no shame in using food assistance programs. These programs exist precisely for situations like this. Search our website for information about food pantries, hot meal sites, senior meal programs, and farmer’s markets.

CRITICAL UPDATE - CalFresh Benefits Status:

November CalFresh benefits are delayed due to the federal government shutdown. Here's what you need to know:

November benefits will not be loaded to EBT cards on schedule
Your EBT card may be temporarily frozen starting November 1st
You do NOT need to reapply - benefits will automatically be issued when federal funding becomes available
Continue submitting your Semi-Annual Reports (SAR 7) and renewal forms on time, though there may be processing delays

You can still apply for CalFresh benefits, but benefits may be delayed due to the shutdown.

CalFresh (California's name for SNAP, the Supplemental Nutrition Assistance Program) can provide significant help once the shutdown ends. Many federal employees are surprised to learn they might qualify for emergency CalFresh benefits. Since you currently have no income or very limited income, you may be eligible even if you wouldn't normally qualify.

When you apply, explain that you're a federal employee who is currently receiving no income due to the shutdown. Many counties can process emergency applications within just a few days once funding resumes.

CalFresh benefits are more generous than many people realize. A family of four can receive several hundred dollars per month in benefits, which can make a huge difference in your grocery budget. The benefits continue until your income situation changes, and when the shutdown ends and you're receiving regular paychecks again, you simply report the change and the benefits will stop.

Supplemental Nutrition Benefit (SNB) and Transitional Nutrition Benefit (TNB) are NOT affected by the shutdown and will issue as normal.

WIC Program Status:

If you're pregnant, postpartum, or have young children, WIC (Women, Infants, and Children) is another crucial program. WIC provides specific nutritious foods, nutrition education, and referrals to healthcare. WIC is fully funded and will remain in operation as usual for Santa Barbara County. If you're currently enrolled in WIC, continue accessing your benefits now. Federal employees that are not receiving pay may qualify for this program. If you're not enrolled but are eligible, apply as soon as possible.

Beyond government programs, food pantries throughout California are ready to help. FoodBank of Santa Barbara County is prepared and has extra resources for those affected by the federal shutdown. You can review available food distribution sites on the FoodBank of Santa Barbara County website. Santa Barbara County food banks does not require paperwork, just show up to their partner distribution sites and hours.

With November CalFresh benefits delayed, food banks might experience high demand. Please be patient and know that these organizations are doing everything they can to help everyone in need.

Keeping Your Utilities Connected

Lights, gas, internet: these aren't luxuries, especially if you have children at home or need to look for temporary work online. The good news is that utility companies are often willing to work with customers facing temporary hardship.

Contact each of your utility providers, electricity PG&E or SC Edison, SoCAlGas, and internet, and explain that you're a federal employee affected by the shutdown. Ask about three things: payment extensions (getting more time to pay your bill), payment plans (splitting your bill into smaller amounts over several months), and shutoff protection (a guarantee that they won't disconnect your service during this period).

Many utilities have specific programs for customers experiencing financial hardship. California also has programs like CARE (California Alternate Rates for Energy) that provide reduced rates for eligible low-income customers. Even if you didn't qualify before, your current situation might make you eligible now.

The most important thing is to call before your services are shut off. Once a utility has been disconnected, there are often reconnection fees and deposits required to turn it back on, which makes everything more expensive and complicated. Check here for information on other utility payment assistance available.

Protect Your Healthcare

Your federal employee health insurance continues during the shutdown, which is critically important. Your premiums will continue to accrue, and they'll be deducted from your back pay when you receive it.

If you're struggling to afford prescription medications right now, there are several strategies to explore. First, call your doctor's office and explain your situation. Ask if there are generic alternatives to your current medications that cost less, or if they have sample supplies they can give you to get you through the next few weeks.

You can also contact the pharmaceutical companies directly. Most major drug manufacturers have patient assistance programs for people who can't afford their medications. These programs can sometimes provide your medications for free or at drastically reduced cost. Your doctor's office can help you with the paperwork for these programs.

If you're dealing with a chronic condition and need to see a doctor but can't afford it right now, look into community health centers. These clinics offer medical, dental, mental health, and substance abuse services on a sliding scale based on your ability to pay.

If you have a disability or provide care for family member that does, you can find information about programs like paratransit, mobility aids, home accessibility modifications, respite care, and more here.

Taking Care of Your Metal Health

Let's talk about something that doesn't get discussed enough: the mental and emotional toll of financial stress. If you're feeling anxious, having trouble sleeping, feeling short-tempered with your family, or constantly worried about money, these are completely normal reactions to an abnormal situation.

The uncertainty of not knowing when your next paycheck will come, wondering how you'll pay your bills, possibly facing uncomfortable conversations with lenders or family members, all of this creates real psychological stress.

Mental health support is available, and you don't have to wait until you're in crisis to reach out. If you're in crisis, having thoughts of self-harm or feeling overwhelmed to the point where you can't function, call the 988 Suicide & Crisis Lifeline. It's available 24/7, completely confidential, and staffed by trained counselors. You can search for other crisis supports and services for things like domestic violence, child & elder abuse, youth, veteran/military, and LGBTQ+ hotlines and more here.

Reducing Your Expenses: Practical Steps You Can Take Today

While you're working on securing assistance and payment deferrals, you can also take immediate steps to reduce your expenses. Every dollar you save now is a dollar you have available for critical needs.

Food Delivery

Grocery and meal delivery services are convenient, but they come with significant markups, delivery fees, and tip expectations that can double the cost of your food. Shopping in person, and cooking at home, even if less convenient, will stretch your dollars much further right now. Try grocery pick-up services to help reduce impulse buying or explore discount grocery stores you might not normally shop at.

For individuals with disabilities and older adults Access Central Coast (ACC) provides a meal program.

Subscriptions and Memberships

Take 30 minutes today to go through your bank and credit card statements from the past month. Look for subscription charges: movie, TV, and music streaming services; gym memberships; subscription boxes; app subscriptions on your phone. Add up how much these cost per month. It might surprise you.

Most of these services can be easily canceled or paused online. Movie streaming costs about $15-20 per month, music are $10-12, a gym membership might be $50-100. Together, these could easily add up to hundreds of dollars per month that you could redirect to groceries or utilities. Remember, you can always resubscribe when your paychecks resume.

Your local library is a fantastic free resource that you might not have thought about. Most libraries now offer free streaming of movies, music, and audiobooks, free WiFi, and lots of activities for children. They're also quiet, climate-controlled places where you can spend time if you need to get out of the house without spending money.

Transportation Costs

If you're furloughed and not commuting to work, you're already saving on gas or transportation costs. But look for additional savings too. Can you combine errands into one trip instead of multiple trips? Can you carpool with a friend or neighbor for grocery shopping? If you have multiple vehicles, could you temporarily take one off the road and suspend the insurance (check with your insurance company about whether this is possible under your policy)? Search our website for transportation related assistance and services.

Negotiating Your Regular Bills

You might not realize this, but many of your regular monthly bills are negotiable, especially when you're experiencing a documented financial hardship. This includes things like your cell phone bill, internet service, and insurance premiums.

Call your cell phone company and explain that you're a federal employee affected by the shutdown. Ask if they have any temporary hardship plans or reduced-rate options. Many companies have plans they don't advertise that offer fewer features but cost significantly less. Even reducing your bill by $20-30 per month adds up.

For insurance (auto, home, or renters), call your agent and ask about ways to reduce your premium.

Watching Out for Scams and Predatory Loan Offers

Unfortunately, scammers know that people under financial stress are vulnerable, and government shutdowns attract con artists. You need to be on guard.

Be very wary of anyone who contacts you (especially by phone or email) offering "guaranteed" loans or grants for federal employees. Legitimate lenders don't cold-call people. If someone asks for upfront fees to process a loan or asks for your bank account information or Social Security number without you initiating the contact, that's a red flag.

Similarly, avoid payday loan services that offer quick cash at extremely high interest rates. We understand the appeal: when you're desperate and need money today, a payday lender who says 'yes' without checking your credit can seem like a lifeline. But these loans are designed to trap you in a cycle of debt that becomes nearly impossible to escape. Many people get stuck paying these loans off for months or even years.

The Federal Trade Commission has found that the typical payday loan borrower ends up paying more in fees than the amount they originally borrowed. A temporary problem (missing one paycheck) becomes a long-term financial crisis that can take years to recover from. Even in your most desperate moment, a payday loan will almost always make your situation worse, not better.

Credit Cards

While you're managing expenses, be extremely cautious about running up balances on high-interest credit cards. When you're not receiving paychecks, it's tempting to use credit cards to fill the gap, for groceries, gas, utilities, all the things you normally pay for with your paycheck. This is understandable, and sometimes unavoidable. But it's crucial to understand the long-term consequences.

Before using credit cards, exhaust other options first: contact your mortgage lender and utility companies about deferrals, apply for CalFresh (once funding resumes), visit food banks, and look into the no-interest or low-interest shutdown loans from banks and credit unions. If you must use credit cards, keep careful track of what you're charging and prioritize paying down those balances as soon as your paychecks resume. The high-interest debt you accumulate during a shutdown can impact your financial health for years to come.

If you already have credit card debt and are struggling to make payments during the shutdown, call your credit card companies and explain your situation. Many have hardship programs that can temporarily lower your interest rate or minimum payment. Again, the key is to call before you miss a payment, being proactive gives you more options and protects your credit score.

What Happens When the Shutdown Ends

While we don't know exactly when the shutdown will end, we do know that it will end eventually. All previous shutdowns have ended, and when they do, life starts to return to normal, though it might take a few weeks to fully recover.

Prioritize catching up on any bills you deferred or fell behind on. Make sure your housing, utilities, and other critical expenses are completely current. Then, if you took out any shutdown loans, those will likely be repaid automatically if you set up automatic repayment. Double-check that those payments went through correctly.

Next, if you depleted your savings or emergency fund during the shutdown, start rebuilding it. Even if you can only set aside $50 or $100 from each paycheck. Financial experts typically recommend having three to six months of expenses saved, but even one month of expenses saved would make the next disruption much less stressful.

You're Not Alone

If there's one message we want you to take away from this, it's that you don't have to navigate this alone. Thousands of federal workers and their families throughout California are facing this same challenge. You're part of our community, and that community has resources to help you.

211 exists precisely for moments like this. We're available 24 hours a day, 7 days a week, every single day of the year, in English or Spanish or dozens of other languages.

We understand that asking for help can feel uncomfortable, especially if you've always been self-sufficient. But seeking help isn't a sign of weakness; it's a sign of strength and wisdom. You're taking care of yourself and your family by being proactive and finding solutions.

When you reach out to 211, you'll speak with a real person who will listen to your specific situation and connect you with resources in your community that can help. We don't judge. We don't ask unnecessary questions. We're simply here to help.

You are strong. You are resourceful. You are not alone.

*This information is current as of October 31, 2025. The situation is evolving, so please contact 211 for the most up-to-date information and resources specific to your situation and location. We are ready to help you navigate this challenging time.

Resources for Federal Workers

A Note From 211

What We Know So Far:

What This Means For Your Work and Pay:

Financial Lifelines: Understanding Your Loan Options

Protecting Your Home: Let's Talk About Mortgages and Rent

Taking Care of Basic Needs: Food, Utilities, and Healthcare

Reducing Your Expenses: Practical Steps You Can Take Today

Watching Out for Scams and Predatory Loan Offers

Credit Cards

What Happens When the Shutdown Ends

You're Not Alone

Dial 2-1-1 or Text Your Zip Code to 898-211

2-1-1 is available 24 hours a day, 7 days a week AND is free, confidential, and available in multiple languages.

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