When will unpaid federal workers be eligible for state-backed loans?

HARTFORD – Gov. Ned Lamont announced Tuesday that Connecticut would provide state-backed, interest-free loans for federal employees who are not being paid during the partial shutdown of the federal government that has lasted 25 days so far.

The program still has numerous unanswered questions as state officials have no idea how long the federal shutdown will last. President Donald Trump and House Speaker Nancy Pelosi, among others, have been unable to reach an agreement over Trump’s plan to spend $5.7 billion on a wall along the U.S.Mexico border.

What needs to happen to make this a reality?

The state legislature needs to vote to approve the loans. Lamont lacks the authority as governor to guarantee the loans through the executive branch, and only the legislature can

allocate the money.

“If you’re going to put the full faith and credit of the state in a guarantee in place, you’ll need a legislative vote on that,’’ said House Majority Leader Matt Ritter of Hartford.

How fast will this happen?

The General Assembly will craft an emergency-certified bill that allows them to skip public hearings and committee votes — unlike some bills that have multiple committee votes before getting approved in the final days of the session in June. Lawmakers are expecting to move “as soon as possible,’’ Ritter said.

House Republican leader Themis Klarides agreed, saying, “Time is of the essence, certainly, on this issue. They can’t wait a month to decide.’’

What else will the legislature do?

In the same bill, the legislature would likely change the state law in order to make the essential federal workers eligible for unemployment compensation. Currently, those who are furloughed are eligible for unemployment compensation, but those who are still working and not being paid because they are deemed as “essential’’ cannot receive unemployment compensation.

How many banks are participating?

Webster Bank stepped forward with plans for the loans. People’s Bank has also agreed to provide loans, and officials expect more banks to participate.

How many federal employees are eligible for the interest-free, state-backed loans?

Out of 1,500 federal workers in Connecticut, about 80 percent — or 1,200 — are considered “essential’’ employees who have not been paid since the shutdown began. Those include air traffic controllers and Transportation Security Administration employees who screen passengers and baggage at places such as Bradley International Airport in Windsor Locks.

How much will it cost?

The precise amount of money would depend on how long the shutdown lasts and how many employees seek loans. The state’s “essential” federal workers will be eligible to borrow 100 percent of their post-tax income, up to $5,000 per month. A preliminary estimate for 1,200 employees is a cost of $5 million per pay cycle.

Christopher Keating can be reached at ckeating@courant.com