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November 3, 2025 by Clarissa Ayala

What Federal Workers Need to Know About Applying for Unemployment During the Shutdown


If you’re a federal employee affected by the government shutdown—either furloughed or working without pay—you may qualify for unemployment benefits through the Texas Workforce Commission (TWC).

You Can Apply for Benefits Now

If you’ve been furloughed or are working fewer hours because of the shutdown, you can apply for unemployment benefits immediately.

When you apply, you’ll need:

  • Your Social Security number, address, date of birth, and driver’s license number
  • Information about your most recent employment, including your agency’s name and location, and dates worked
  • An estimate of your federal wages from the past 18 months

What Happens After You Apply

TWC will mail you a form to confirm your wages and employment.

  • Review the form carefully. If the wage information is incorrect, make corrections.
  • Attach proof of employment—like your most recent W-2 form or pay stub showing your name, Social Security number, and federal agency.
  • Submit online through TWC’s secure UI Submission Portal.

You’ll also receive an Unemployment Benefits Handbook, which explains your responsibilities and how to request payments. Read it thoroughly to make sure you meet all requirements.

How TWC Decides if You Qualify

To be eligible for benefits, you must:

  1. Have enough past wages, and
  2. Have a qualifying job separation.

If you were laid off due to the government shutdown, TWC generally considers that a layoff, which qualifies for unemployment. Once you submit proof of employment, you’ll receive a Statement of Wages and Potential Benefit Amounts explaining what you’re eligible to receive.

If You Receive Retroactive Pay Later

If your agency later pays you for the time you missed during the shutdown, you’ll have to repay any unemployment benefits you received for that same period.

  • Some agencies may deduct those benefits from your back pay and refund TWC directly.
  • If not, you are responsible for repaying TWC yourself.

Waiting Weeks

TWC holds your first payable week (known as the waiting week) until you’ve received your weekly benefit amount two times and either return to full-time work or exhaust your benefits.

Proof of Employment Is Required

TWC can’t pay benefits without proof of your federal employment. Because agencies may be delayed in responding, it’s important to submit your own documentation as soon as possible to avoid processing delays.

Overpayments from Prior Claims

If you owe money from a previous unemployment claim, state law requires that you repay that overpayment before TWC can issue new benefits. Any new benefit payments may be applied to your balance until it’s cleared.

Need Legal Help?

If you’re a federal employee facing eviction, foreclosure, debt collection, or other legal issues due to the government shutdown, Lone Star Legal Aid may be able to help.

Apply for free legal assistance at www.lonestarlegal.org or call 1-800-733-8394.