Federal Shutdown Impact On 10K in NH Being Assessed, Shaheen Pushing for Help

Paula Tracy photo

George Copadis, commissioner of Employment Security, is pictured Wednesday at the Governor and Executive Council meeting in Hollis.

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By PAULA TRACY, InDepthNH.org

CONCORD – The state has almost 10,000 residents who are federal workers, and many will be working without pay, laid off or perhaps terminated due to the federal government shutdown this week and statements from the White House.

U.S. Sen. Jeanne Shaheen, D-NH, is among others who have introduced three bills aimed at emergency financial relief.

The Portsmouth Naval Shipyard said on its website: “The most recent appropriations for the Department of War expired at 11:59 p.m. EDT on Sept. 30, 2025. Military personnel will continue in a normal duty status, without pay, until such time as a continuing resolution or appropriations are passed by Congress and signed into law. Civilian personnel not engaged in excepted activities will be placed in a non-work, non-pay status.”

George Copadis, commissioner of Employment Security told Gov. Kelly Ayotte and the state Executive Council Wednesday that several thousand might be laid off, in a time when the state has fewer than 4,000 receiving unemployment. That number could double if they are terminated.

Many federal employees are working right now without pay until the shutdown is over and then be paid. It remains unclear how many people are impacted, how many will be laid off and how long this will last.

NH Adjutant General David Mikolaities also told the council that almost 1,000 civilian and military personnel in New Hampshire showed up to work on day one of the shutdown and will work without pay until it ends.

He said there is some financial assistance available in an emergency assistance program and he hopes the shutdown is brief after Congress failed to pass a spending gap measure and the government ran out of money on Oct. 1.

Shaheen has signed on to the Emergency Relief for Federal Workers Act, the Emergency Relief for Federal Contractors Act and the Fair Pay for Federal Contractors Act, that would support federal employees facing financial hardships during a government shutdown.

“During a government shutdown the majority of federal employees and many workers at federal contractors are forced to work without pay,” said Senator Shaheen. “That can be a huge and unexpected financial burden that many families can’t afford, especially at a time when costs are already too high. These common sense bills would broaden the resources available to federal workers and contractors during a shutdown, providing some much-needed financial relief.”

The Emergency Relief for Federal Workers Act would allow federal employees to withdraw funds from their Thrift Savings Plan without being penalized if the government shutdown is prolonged, while ensuring that funds could be recontributed later on. During past shutdowns, many federal employees turned to their TSP retirement accounts to make hardship withdrawals to cover bills. However, there are penalties for withdrawing these funds, and barriers to recontributing funds once the government reopens.

The Emergency Relief for Federal Contractors Act and the Fair Pay for Federal Contractors Act would help workers at federal contractors stay afloat when they face a financial hardship during a government shutdown. Unlike directly-employed federal workers, employees of federal contractors do not receive automatic backpay for any of the services they provide during a government shutdown. Specifically, the Emergency Relief for Federal Contractors Act would allow federal contractors to withdraw from their Individual Retirement Accounts, penalty-free, and the Fair Pay for Federal Contractors Act would ensure workers at federal contractors receive backpay.

Gov. Ayotte said Wednesday that she feels most of the programs where the state receives federal funds are okay for a month but it could become problematic after that period of time for some programs especially those for children and families who rely on food support.

She said her goal is to focus on the neediest and in this time of a shutdown and called on lawmakers in Washington to do their job and get the government back open.

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