Within 24 hours of Governor Ned Lamont signing fast-tracked legislation to support a zero-interest loan program to help furloughed federal workers make ends meet, Newtown Savings Bank (NSB) has established itself as a local go-to location for those looking to apply.

NSB has committed to participating in the Connecticut Hardship Assistance Program (CHAP). This short-term loan program is available to federal employees residing in the State of Connecticut that are required to work without pay, or furloughed as a federal employee without pay, as a result of the partial federal government shutdown.

Workers may borrow up to $5,000 with no (0 percent) interest during the shutdown, with six month repayment terms beginning three months after shutdown ends.

In addition, bank customers who have been affected by the government shutdown may also be eligible for relief in the form of fee rebates, waived fees, and other available options, as part of the bank’s hardship program.

“We’re proud to have served our community through all the ups and downs of the past 163 years and are pleased to participate in this joint effort between the State and Connecticut’s banks,” said NSB President and CEO Ken Weinstein.

Federal workers looking for more information can visit nsbonline.com or call 800-461-0672.

Just before 4 pm on January 22, Day 31 of the shutdown, Gov Lamont signed the first bill of his tenure, initiating emergency certified legislation he proposed last week that will enable both essential and nonessential federal workers to receive no-interest loans during the shutdown of the federal government through a public/private partnership between the State of Connecticut and private banks and credit unions.

The partnership guarantees that federal workers in Connecticut, some of whom are still required to work while not receiving a paycheck and are otherwise ineligible to apply for unemployment assistance, will be able to receive financial assistance during the shutdown.

The idea for the partnership — the first of its kind in the nation — was developed between Gov Lamont and the state’s banking community. Because the loans will be backed by the state, legislation was needed to approve the partnership.

“This unique and innovative partnership will help federal workers access the funding necessary to pay their bills and put food on the table during the shutdown,” Governor Lamont said. “Its quick, bipartisan approval by the General Assembly is an example of what we can accomplish when we partner with the private sector and come together as leaders, rather than Democrats or Republicans.”

Newtown Delegation Unanimous

Democrat and Republican leaders in the General Assembly quickly indicated their support for the proposal, and their staffs worked cooperatively with the Governor’s Office to develop the language. The legislation was approved earlier that same afternoon by both chambers of the General Assembly, and it was immediately transmitted to the governor for his signature.

Senator Tony Hwang (R-28), who represents Newtown, called the bill a “proactive and public/private approach to provide some relief to Connecticut residents who are federal workers currently on furlough or are required to work without pay.”

“Many affected workers furloughed during government shutdowns are not eligible for unemployment benefits. Without any sort of income during times like these and faced with rising liabilities, I believe it is our responsibility to provide these constituents of ours with the ability to meet their financial needs,” Sen Hwang said. “Unfortunately, this situation is a result of deep dysfunction in Washington, DC, and although the legislature has little influence over the resolution of the federal government shutdown, we can and should do all in our power to help the workers affected. I applaud the Governor and House and Senate leadership for coming together so quickly on a bipartisan basis to find a solution to the needs of Connecticut workers and families.”

Representative Mitch Bolinsky (R-106) of Newtown pointed out that Connecticut has about 1,500 residents that are employed by the federal government — and more than a few reside in Newtown.

“Of those 1,500, 1,300 continue to go to work every day without receiving a paycheck. This voluntary legislation, a public/private partnership, passed the House with great bipartisan support at the Capitol and will provide a means for these workers to receive financial compensation immediately, if they so choose,” explained Rep Bolinsky. “The reality is, these federal employees did not make the decision to stop doing business in Washington, DC. These people are hard-working, middle class families that simply cannot afford to go months without receiving a paycheck. The legislation passed today is a small way we can help them with life expenses and peace of mind.”

Representative JP Sredzinski (R-112), whose district covers southern Newtown, said, “While it is disappointing that this legislation is needed at all, I was pleased to support the bill to help some of our citizens in Connecticut who have become victims of the dysfunction in Washington. For those federal employees forced to work without pay and are ineligible for unemployment compensation, these short-term loans and tax deferments will help make ends meet. Further, since the bill does not mandate a bank or a municipality from participating, it makes the entire process voluntary.”

Representative Raghib Allie-Brennan (D-2), who represents several neighborhoods in the western part of town, lamented, “This federal shutdown — the longest in our nation’s history — puts in perspective the degree of dysfunction that has become the norm in Washington, DC. Federal workers, due to no fault of their own, have become pawns in a battle between our national leaders. Regardless of your political views and your opinions on the issues at the center of the shutdown, we have a responsibility to take care of our federal workers. They are our neighbors and our family members, and they deserve better. I’m proud to support this legislation and hope that it provides some degree of support and relief.”

Bipartisan Teamwork Lauded

Gov Lamont said he was proud that the first bill he signed into law has strong bipartisan support, was created through a collaboration with the state’s business community, and provides aid to people who are in need through no fault of their own.

“It should serve as an indication of the way in which I plan to govern — inclusively, smartly, and in a way that reminds people that government can be part of the solution,” Gov Lamont added. “I don’t know when the shutdown will end, but I do know that the State of Connecticut and the private sector will continue to work together to help those in need. I thank all of the legislators who quickly voted to approve this bill.”

Sen Hwang concurred, saying, “If this cooperation and proactive [attitude] is a sign of what’s to come, I am optimistic about what we can accomplish this legislative session. The numbers have already begun to show that the historic bipartisanship we have enjoyed in the last two sessions works for Connecticut. Let this first legislative action be a sign there is more to come.”

The legislation permits federal workers who live in the state to receive loans from banks and credit unions that amount to one month’s net pay, capped at $5,000. In the event that the shutdown continues for an extended period of time, participating banks and the state will work with impacted employees to provide additional funds.

To date, a growing number of the state’s financial institutions have contacted the Lamont administration indicating their intention to provide the loans, including Webster Bank and People’s United Bank.

Federal employees who are interested applying for a loan under the partnership should contact the bank or credit union of which they are a member to determine whether it is participating. If it is not, loans may be available through a bank or credit union other than that employees’ usual financial institution.

In addition to creating the loan program, the legislation Governor Lamont signed permits municipalities to defer property tax payments from impacted federal employees and prepares the state’s unemployment insurance system to offer benefits to essential workers if the requisite changes are made to federal law.

The legislation is House Bill 5765, An Act Establishing the Federal Shutdown Affected Employees Loan Program and Providing Additional Assistance to Federal Employees.