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Panel backs bill to extend loan fund and legal support for federal employees facing layoffs
Summary
Delegate Mark Edelson urged the Appropriations Committee to support HB 14-24, which would broaden an existing fund to provide interest-free loans and legal assistance to federal employees affected by closures, relocations or mass layoffs.
Delegate Mark Edelson presented House Bill 14-24, the Protect Our Federal Workers Act, proposing to expand the scope of an existing federal-employee assistance loan fund and to broaden attorney-general authority to defend federal employees in certain circumstances.
"This legislation is designed to reaffirm Maryland's commitment to our indispensable federal employees, providing them with essential protections as they face potential job losses," Edelson said. He described renaming the fund to the Federal Government Employee Assistance Loan Fund and allowing interest-free loans to federal employees affected by closures, relocations or mass layoffs — not just government shutdowns.
Paul Schwartz, vice president of the National Active and Retired Federal Employees (NARFE), testified in support and described the recent, large-scale workforce reductions that sparked the bill. "These are real Maryland people with real Maryland families and the time is now to do something to help," he said, and urged resources be made available to the attorney general to pursue legal actions where appropriate.
Lawmakers asked questions about the size of loans, repayment and scope. One question asked whether the bill's $700 loan amount was sufficient and what would happen if loans were not repaid; sponsors noted the loan is intended as a short-term bridge, typically taken in addition to unemployment benefits, and suggested labour and other agencies could provide detail about repayment histories from previous emergencies. Committee members also asked whether the bill applies per person or per household; sponsors said each individual could apply.
No vote was recorded in the hearing. Supporters said they had discussed possible friendly amendments to allocate additional resources to the attorney general for litigation and enforcement, and that the bill was intended as an immediate safety net while other remedies were pursued.
Why it matters: Maryland is home to a large federal workforce in defense, biomedical research, regulatory and civil agencies; advocates argued that rapid federal downsizing would have broad local economic effects and that the state should provide a tailored short-term safety net and legal recourse for affected workers.
