State, Local Bank Ready To Reactivate Loan Initiative
The Federal shutdown is over, for now.
But with a three-week stay until another possible large-scale furloughing of federal workers takes effect, Newtown Savings Bank is not dismantling its emergency loan program that was put in place and ready to launch just as President Donald Trump reopened the government on Friday, January 25.
The State of Connecticut is also keeping another legislative maneuver on the back burner for more immediate activation if another near-term shutdown occurs.
Newtown Savings Bank Executive Vice President and Chief Credit Officer Margaret Powers told The Newtown Bee through a spokesperson Monday that the mechanics and process that would have activated January 25, opening up a zero-interest short-term loan program for qualified furloughed federal workers, will be ready if another shutdown triggers new state legislation supporting the initiative.
The record 35-day federal shutdown has ended with President Trump giving in to mounting pressure and signing legislation to reopen the government for three weeks, a retreat from his demand that Congress commit billions to a US-Mexico border wall before federal agencies could resume work.
Trump, in a weakened negotiating position, will try again to persuade lawmakers to finance the wall, with a February 15 deadline looming as he holds out the potential of another shutdown.
He tweeted Saturday January 26 that “21 days goes very quickly” and that making a deal “will not be easy” because both Republicans and Democrats are “very dug in.”
The administration asked department heads to reopen offices in a “prompt and orderly manner” and said hundreds of thousands of furloughed employees , whose latest missed payday had brought new urgency to efforts to resolve the standoff, could return to work.
The deal includes back pay, which the administration promises to get out as soon as possible.
In the event another shutdown occurs after the February 15 deadline, spokespersons from both the Connecticut Department of Banking and the Governor’s Office told The Newtown Bee that a new piece of legislation would need to be ratified and signed by Governor Ned Lamont to reactivate the state’s hastily assembled emergency loan program that would have begun issuing loans had the stalemate in Washington not ended last Friday.
“If there is another shutdown, the legislature would need to adopt legislation authorizing another loan program to begin, similar to the legislation they adopted a few days ago,” said David Bednarz at the Governor’s office.
“However, it would only require a few small date changes, and of course the vote of the legislature,” said Matthew Smith at the state banking office.
Associated Press content was used in this report.