When the federal government shuts down, many federal workers face pay gaps. They want to know: can they claim the federal workers’ unemployment benefits shutdown? In many states, yes, under a program called UCFE (Unemployment Compensation for Federal Employees). The rules vary by state, so knowing how to file unemployment during a shutdown matters.

Eligibility Under UCFE and State Rules

Federal employees placed on furlough may qualify for unemployment. The UCFE program is run by state unemployment agencies in cooperation with the federal government. 

To be eligible:

• You must be in non-pay status (i.e. furloughed). 
• You must meet the state’s standard unemployment rules (worked enough hours, earnings threshold, etc.). 
• Your last federal duty station’s state laws apply. 

Not all roles qualify:

• “Excepted” employees (those required to work during shutdown) are usually excluded because they are still working. 
• Some “excepted intermittent” or part-time roles may qualify partially, depending on work hours. 

State to state, rules differ. In California, for example, federal workers affected by a shutdown may apply if they fulfill standard state requirements. In Washington, the Employment Security Department affirms eligibility “depending on your situation.”

Thus, unemployment eligibility for furloughed federal employees isn’t automatic, you must check your state’s UI laws.

Furlough Pay vs Unemployment Benefits

During a shutdown, federal workers may be furloughed or asked to work without pay. Furlough pay is ideally retroactive, guaranteed under the Government Employee Fair Treatment Act of 2019 (GEFTA). Under GEFTA, once funding returns, furloughed workers and excepted workers are to receive back pay. 

Unemployment benefits, on the other hand, provide weekly payments during the period you lack pay. You cannot collect both for the same hours. If you later receive retroactive pay, you may need to repay some or all of the unemployment benefits. 

Example: In Texas, if your unemployment benefits cover days during the shutdown and later you get retroactive pay, you must pay back the UI for that time. 

So the key: furlough pay is your guaranteed back pay; UI is temporary income support during non-pay periods.

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Filing an Unemployment Claim During a Shutdown

You should file as soon as your furlough begins, in your duty-station state. In Texas, the TWC treats federal furlough as a “layoff” and lets you apply immediately. 

Steps to file:

• Gather your personal details and recent federal pay records (W-2, pay stub, etc.).
• Submit your application via the state UI portal or by phone. 
• Be ready to repay benefits if retroactive pay comes. 

Some states treat furloughed employees as job-attached, meaning you may not need to actively search for new work during the claim. 

Waiting Periods and Processing Delays

Because you are a federal employee, your UI claim may take longer. States must verify your federal status, pay records, and type of employment. That means processing delays. 

Most states enforce a waiting week (the first week of claim not paid). That still applies. Retroactive payments under GEFTA may complicate matters, as states must reconcile UI payments with those back payments. So expect some lag time in receiving benefits due to federal verification.

State Rules That Matter

Your state’s unemployment law is crucial in determining your claim. UCFE does not override state rules.

For example:

• In Texas, the TWC considers furloughed federal employees laid off, letting them apply. 
• In New Jersey, you apply where assigned, and benefits can last up to 26 weeks.
• In Colorado, UI offices affirm that federal workers may apply; they are considered job-attached and exempt from work search. 

If your state UI law has strict work history or wage thresholds, you may fail initial eligibility even if UCFE is available. Always verify with your state UI agency.

Repaying UI When Retro Pay Arrives

When your back pay comes, you may owe the state UI agency. That is common under UCFE. 

In Texas, they specifically state: “if you are paid retroactively for the period you were unemployed during the shutdown, you will have to repay the benefits you received.” This repayment clause protects states from double compensation. Be prepared financially for that.

Conclusion

When the government shuts down, many federal workers can claim federal unemployment benefits via UCFE through their state UI system. But eligibility depends on your role, state rules, and whether you continued working under “excepted” status. Furlough pay and unemployment benefits serve different purposes and cannot be combined for the same hours. 

Always file early, track your federal employment records, and be ready for delays and repayment when federal back pay is disbursed. Unemployment eligibility for furloughed federal employees is real, but only if you navigate the state laws and timing correctly.

FAQs

Can federal employees get unemployment during a government shutdown?
Yes, federal employees on furlough may qualify via the UCFE program, subject to state eligibility rules.

What do federal employees do during a government shutdown?
They may be placed on furlough (temporary unpaid leave) unless their role is “excepted,” in which case they work without pay.

Do federal employees pay into unemployment benefits?
Not directly. UCFE is a federal-state program; states treat eligible federal wage records like regular UI wages.

Can I apply for unemployment if my job shuts down?
Yes, file with the state UI agency in your duty-station state, and your claim will be processed under UCFE rules.