Massachusetts Protects Federal Employees and Service Members in the FY25 Supplemental Budget

With this bipartisan legislation, Massachusetts is leading the charge in guaranteeing federal employees the security and respect they deserve during all future government shutdowns.

(Boston, MA – November 24, 2025) –The House and Senate Committees on Ways and Means announced an agreement on the Fiscal Year 2025 Closeout Supplemental Budget. Included in this closeout budget is Senator Lydia Edwards’ Federal Employee and Service Member Civil Relief Act, an emergency measure that provides protections for federal employees, service members, and their families during any future federal government shutdowns that result in missed paychecks. The legislation safeguards against evictions, foreclosures, and severe financial hardship during these periods of uncertainty. As drafted, the law lasts the length of the shutdown plus an additional 30 days, with the Governor able to extend it by an additional 45 days. 

Following the longest federal government shutdown in U.S. history — a 43-day stoppage — Massachusetts has taken decisive action to support those who serve the nation. This new law ensures permanent protections for federal workers, service members, and their families against all future government shutdowns.  

“I’d like to express my deep gratitude to Senate President Karen Spilka and Speaker of the House Ron Mariano for their leadership on this. I want to also thank Chair Michlewitz and Chair Rodrigues for their support in advancing this legislation swiftly and for prioritizing the well-being of federal workers across the Commonwealth. Also,  Governor Healey has been a supporter of the bill and its protections since its inception, and I am grateful for her support,”  said Senator Lydia Edwards, State Senator for the Third Suffolk District and drafter of the bill.

While the shutdown has formally ended, the 43 days of missed paychecks have left many people with depleted savings or relying on credit cards. Senator Edwards added, “I know folks are struggling, even when we get backpay, we will still have financial messes to clean up. Also, we are hearing that we could be facing another shutdown in January, which is why this bill is still necessary.” 

Massachusetts is home to approximately 45,000 civilian federal employees and 17,000 members of the reserve component, including National Guard and Reservist members. While not all reside full-time in the Commonwealth, this legislation will extend critical housing protections to up to 62,000 individuals, ensuring they cannot lose their homes because of missed pay during a shutdown.

Until now, federal employees who were required to work without pay were ineligible for unemployment benefits, while furloughed employees could sometimes qualify but would later be required to repay benefits once back pay was issued. This system left thousands of Massachusetts residents — including many service members — in a financial limbo.

Key Provisions of the Act:

• Eviction Moratorium: Landlords are temporarily prohibited from issuing eviction notices or filing eviction cases for nonpayment of rent related to the shutdown.

• Foreclosure Suspension: Mortgage lenders may not initiate or proceed with foreclosure actions during the shutdown period.

• Mortgage Forbearance: Federal employees and servicemembers who demonstrate financial hardship can request up to 180 days of mortgage leniency, with no late fees, penalties, or negative credit reporting.

• Credit Protections: Landlords and lenders cannot report missed rent or mortgage payments caused by the shutdown to credit agencies.

• Landlord Relief: Landlords may temporarily access last-month rent deposits to cover maintenance or mortgage costs, as long as they notify tenants and restore funds as required by law. Landlords who have federal worker tenants may also seek mortgage forbearance. 

These protections will remain in effect throughout the shutdown and for up to 30 days after it ends, giving families time to recover once normal operations resume.  This is an all-encompassing protection that provides relief to Federal government employees in Massachusetts during shutdowns going forward. “The best part about this bill was the immediate bipartisan support from my colleagues in the House and Senate.  We put the party aside and said it is about what is right. DC could learn a thing or two from us” Senator Edwards concluded.

Once Governor Maura Healey signs the FY25 Closeout Supplemental Budget, the Federal Employee and Service Member Civil Relief Act will have a permanent place in the General Laws of the Commonwealth.