Federal workers act to stay afloat in shutdown

President Donald Trump was asked recently about the financial strain the partial government shutdown has put on workers.

“Mr. President, do you relate to the pain of federal workers who can’t pay their bills?” a reporter asked.

“I can relate,” Trump said. “And I’m sure that the people that are on the receiving end will make adjustments. They always do. And they’ll make adjustments.”

How can Trump, a selfproclaimed billionaire living rent-free in the White House, relate to the plight of people living paycheck to paycheck? It was a tone-deaf response about the financial struggles that many workers are experiencing.

But Trump is right. People are making “adjustments.” Here are some of their methods of making ends meet:

Soliciting money online

Since the shutdown began, $50,000 has been raised through 700 Gofundme campaigns, according to the company’s spokesperson, Bobby Whithorne.

Many government-shutdown appeals have raised no money, while others have garnered a few hundred dollars. A few have generated thousands. If you’re worried about fraud, Whithorne said Gofundme’s Trust & Safety division is reviewing all campaigns related to the government.

Tapping retirement funds

Some employees might resort to tapping their Thrift Savings Plan, which is the federal government’s version of a 401(k) plan.

The Federal Retirement Thrift Investment Board has issued a fact sheet for workers on www.tsp.gov about the shutdown’s impact on contributions, loans and withdrawals.

Workers who aren’t getting paid can ask for a hardship withdrawal, according to Kim Weaver, director of external affairs at the Federal Retirement Thrift Investment Board. But they might be subject to taxes and penalties on the withdrawals and won’t be able to make contributions to their TSP accounts for six months.

Applying for loans

Just as the shutdown began, Navy Federal Credit Union announced a plan to provide a one-time loan of up to $6,000 to federal-government employees and active-duty members of the Coast Guard who have an established direct-deposit account. There is no credit check, and there are no fees or interest charges associated with this loan.

A little more than 100,000 Navy Federal members are affected by the shutdown, according to a spokesman. Of those members, 6,000 had enrolled in the loan program as of Jan. 7.

Filing for unemployment

Some federal workers are seeking unemployment benefits, but for many people, the checks won’t be nearly enough to make ends meet. By the way, unemployment benefits are subject to federal income tax.

During a press conference last week, April Ryan with American Urban Radio Networks asked Trump whether he had thought about a “safety net” for federal workers.

“Well, the safety net is going to be having a strong border, because we’re going to be safe,” Trump said.

Hyperbole about a wall that Mexico was supposed to pay for, Mr. President, won’t pay anyone’s bills.