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New York Bills Seek to Protect Federal Workers from the Impact of Shutdowns

protest the 2025 government shutdown
Those employees should start to receive back pay soon with the standoff coming to an end. Mark Makela/Getty Images

When the federal government grinds to a halt and paychecks don’t arrive for those on the frontline, life still goes on. Bills must be paid. Children must be fed. That’s why Kevin S. Parker, a state senator in New York whose district covers much of Brooklyn, has reintroduced two pieces of legislation in Albany designed specifically for federal employees caught in the crossfire of federal shutdowns.

The first, Bill S.8534, would establish what’s called a “Furloughed Federal Employee Revolving Loan Fund” — essentially zero-interest loans for those federal workers who either find themselves furloughed or working without pay. The idea is to step in where Washington hasn’t, helping people pay the essentials: electricity, gas, keeping the lights on, and preventing services from being cut off.

Oversight would come jointly from the New York State Comptroller and the New York State  Public  Service  Commission. The second, Bill S.8535, takes a slightly different tack — it’s aimed at reducing the rates for residential utilities (electric and natural gas) for those federal workers who are furloughed or otherwise unpaid. In short, it lessens one of the major cost burdens during a pay freeze, as per Reuters.

State Sen. Kevin Parker introduces bills to protect federal employees who live in New York. (Credit: Contributed photo)

Parker points out the real human cost of these shutdowns: “When a federal employee is sent home without pay, they don’t stop being a New Yorker,” he said. “They don’t stop being somebody’s parent, somebody’s neighbor, somebody’s spouse. Their bills don’t pause, and their lights shouldn’t turn off. If Washington can’t act, New York must.”

He adds that if his bills pass, they’d provide “peace of mind and financial stability for working families who serve the federal government and live in New York State.” “If we pass these bills today, we give thousands of families peace of mind tomorrow. We show every federal employee in this state that New York sees you, values you, and has your back,” he said.

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It’s worth thinking about the backdrop here. Federal shutdowns can leave thousands of people — including TSA officers, air traffic controllers, and postal workers — unpaid and scrambling to cover rent, utilities, and groceries. That’s exactly the group Parker’s bills target. He is clear that when the federal system doesn’t function, it’s down to the states to step in.

On the official legislative side, the New York Senate lists Senator Parker as sponsor on Bill S.8535.

 4,000 delays on Wednesday alone, according to flight tracking data (Andrew Caballero-Reynolds/AFP via Getty Images)

These two measures raise some interesting questions. One is whether other states might follow New York’s lead. Another is just how feasible such relief is — the revolving loan fund would need appropriate funding, oversight, and protections so that those zero-interest loans don’t become a hidden burden. And the utility-rate reduction proposal hinges on cooperation from utility companies and regulatory frameworks that allow that kind of flexibility.

There’s also the broader point: When federal shutdowns happen, it’s not just high-profile agency impacts that matter. Many families on modest incomes struggle quietly — their pay stops, and the bills keep rolling. State-led support of the type Parker is proposing may be a practical buffer in that gap.

Whether or not the bills make it through the legislative process remains to be seen, but the message is clear: Parker is saying that federal workers in New York shouldn’t have to shoulder the fallout when federal politics stall. He’s made the case that they remain New Yorkers, with full-blown lives and responsibilities, regardless of what happens in Washington.

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