Furloughed Federal Workers in NJ Eligible for Unemployment Benefits During Government Shutdown

Despite promises of retroactive pay, federal employees assigned to New Jersey may apply for up to $875 per week in state unemployment benefits.

TRENTON, NJ — Federal employees assigned to work in New Jersey who have been furloughed due to the ongoing federal government shutdown—which began on October 1, 2025—are eligible to apply for unemployment insurance benefits, according to the New Jersey Department of Labor and Workforce Development (NJDOL).

Unemployment benefits will be issued to eligible federal workers for the duration of the shutdown, regardless of the date their claim is filed. The maximum weekly benefit for 2025 is $875, and eligible individuals may receive benefits for up to 26 weeks under New Jersey unemployment law.

Application Requirements and Process

To qualify, furloughed employees must:

• File for unemployment in the state where they are assigned to work, not where they reside.

• Provide proof of wages, such as recent pay stubs or federal pay statements.

• Meet all other standard New Jersey unemployment eligibility requirements.

Applications should be submitted online via myunemployment.nj.gov. Workers seeking information specific to federal furlough eligibility can visit myunemployment.nj.gov/federal.

Retroactive Pay and Repayment

Under Public Law 116-1, enacted in 2019, furloughed and "excepted" federal workers are entitled to back pay once the shutdown ends. However, back pay is subject to congressional approval of funds.

If a furloughed employee receives retroactive wages after collecting unemployment, they will be required to repay any overpaid unemployment benefits to the State of New Jersey.

Employees Not Covered

• Excepted federal employees, who are still required to report to work without pay, are not eligible for unemployment benefits while performing work, per current federal law.

• Employees who opted into the Deferred Resignation Program (DRP) and received a buyout before September 30, 2025, are not considered furloughed and are ineligible under shutdown-related unemployment provisions. Their separation is classified as voluntary.

NJDOL emphasized its commitment to supporting all impacted workers and advised that further guidance may be issued as the federal situation evolves.

Affected workers are encouraged to monitor official state resources and submit claims promptly to avoid delays once eligibility is confirmed.