Assembly Bill A9229

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9229
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             November 3, 2025
                                ___________
 
 Introduced  by  M.  of  A.  CUNNINGHAM  -- read once and referred to the
   Committee on Governmental Operations
 
 AN ACT to amend the executive law, in relation  to  providing  emergency
   financial assistance and consumer protections to federal employees and
   contractors  residing  in New York state who experience loss of income
   due to a lapse in federal appropriations, and directing certain  state
   agencies  to coordinate relief efforts during federal government shut-
   downs
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "shutdown impact mitigation act".
   § 2. Legislative findings and intent. The legislature finds that laps-
 es in federal appropriations cause immediate  and  significant  hardship
 for  thousands of federal employees and contractors residing in New York
 state. When paychecks are delayed through no fault of their  own,  these
 individuals  face  challenges in meeting basic obligations such as rent,
 mortgage, childcare, and utilities.
   It is the intent of the legislature to establish a  coordinated  state
 response--leveraging  existing  agencies--to provide temporary financial
 assistance, protect against penalties and late fees, and ensure affected
 residents can maintain stability until federal operations resume.
   § 3. The executive law is amended by adding a  new  section  170-k  to
 read as follows:
   §  170-K. SHUTDOWN IMPACT MITIGATION. 1. DEFINITIONS. FOR THE PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "FEDERAL SHUTDOWN"  MEANS  ANY  LAPSE  IN  FEDERAL  APPROPRIATIONS
 RESULTING  IN  THE TEMPORARY FURLOUGH OR NONPAYMENT OF FEDERAL EMPLOYEES
 OR FEDERAL CONTRACTORS.
   (B) "AFFECTED WORKER" MEANS ANY INDIVIDUAL WHO IS (I) EMPLOYED BY  THE
 FEDERAL  GOVERNMENT  AND  RESIDES  IN NEW YORK STATE, OR (II) A RESIDENT

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13963-01-5
              

 A. 9229                             2
 
 FEDERAL CONTRACTOR WHOSE PAYMENT OR EMPLOYMENT IS SUSPENDED AS A  DIRECT
 RESULT OF A FEDERAL SHUTDOWN.
   (C)  "ADMINISTERING AGENCY" MEANS THE DEPARTMENT OF LABOR OR OFFICE OF
 TEMPORARY AND DISABILITY ASSISTANCE, AS DESIGNATED BY THE GOVERNOR.
   2. EMERGENCY RELIEF PROGRAM. (A) UPON DECLARATION OF A  FEDERAL  SHUT-
 DOWN,  THE  ADMINISTERING  AGENCY  SHALL  ACTIVATE  AN  EMERGENCY RELIEF
 PROGRAM TO PROVIDE SHORT-TERM, ZERO-INTEREST LOANS OR GRANTS TO AFFECTED
 WORKERS RESIDING IN NEW YORK STATE.
   (B) FUNDS SHALL BE DRAWN FROM EXISTING APPROPRIATIONS AVAILABLE TO THE
 ADMINISTERING AGENCY, AND MAY BE SUPPLEMENTED BY PRIVATE OR PHILANTHROP-
 IC CONTRIBUTIONS DEPOSITED INTO A DESIGNATED ACCOUNT.
   (C) ASSISTANCE SHALL BE CAPPED AT AN AMOUNT EQUAL TO TWO WEEKS OF  THE
 AFFECTED  WORKER'S  AVERAGE  NET  PAY AND MAY BE REPAID OR FORGIVEN ONCE
 FEDERAL BACK PAY IS ISSUED.
   (D) THE ADMINISTERING AGENCY SHALL ESTABLISH AN ONLINE  AND  IN-PERSON
 APPLICATION  PROCESS,  AND  MAY COORDINATE WITH FEDERAL EMPLOYEE UNIONS,
 CREDIT UNIONS, AND COMMUNITY  ORGANIZATIONS  TO  VERIFY  ELIGIBILITY  OF
 APPLICANTS.
   3. TEMPORARY CONSUMER AND HOUSING PROTECTIONS. (A) DURING ANY DECLARED
 FEDERAL  SHUTDOWN,  ALL  STATE-REGULATED  BANKS, CREDIT UNIONS, MORTGAGE
 SERVICERS, LANDLORDS, AND UTILITY  PROVIDERS  ARE  AUTHORIZED  TO  OFFER
 FORBEARANCE,  DEFERMENT,  OR WAIVER OF LATE FEES TO AFFECTED WORKERS WHO
 PROVIDE PROOF OF FEDERAL EMPLOYMENT OR CONTRACT STATUS.
   (B) THE DEPARTMENT OF FINANCIAL SERVICES SHALL ISSUE GUIDANCE AND  MAY
 ADOPT  EMERGENCY REGULATIONS TO ENCOURAGE COMPLIANCE AND PUBLICIZE THESE
 PROTECTIONS.
   (C) NO ADVERSE CREDIT REPORTING SHALL  BE  MADE  AGAINST  AN  AFFECTED
 WORKER  FOR NONPAYMENT OF OBLIGATIONS DURING THE SHUTDOWN PERIOD AND FOR
 THIRTY DAYS THEREAFTER.
   (D) STATE AND MUNICIPAL AGENCIES SHALL SUSPEND ENFORCEMENT ACTIONS FOR
 UNPAID FEES, FINES, OR TICKETS FOR  AFFECTED  WORKERS  DURING  THE  SAME
 PERIOD.
   4.  COORDINATION  AND  PUBLIC INFORMATION. (A) THE DEPARTMENT OF LABOR
 SHALL MAINTAIN A PUBLIC SHUTDOWN  IMPACT  PORTAL,  PROVIDING  UP-TO-DATE
 INFORMATION ON RELIEF ELIGIBILITY, PARTICIPATING FINANCIAL INSTITUTIONS,
 AND AVAILABLE STATE AND LOCAL RESOURCES.
   (B)  THE  ADMINISTERING  AGENCY  SHALL  SUBMIT AN ANNUAL REPORT TO THE
 GOVERNOR AND THE LEGISLATURE WITHIN NINETY  DAYS  OF  THE  END  OF  EACH
 FEDERAL  SHUTDOWN,  DETAILING  THE  NUMBER  OF  APPLICANTS SERVED, TOTAL
 RELIEF DISBURSED, LIST OF PARTICIPATING  INSTITUTIONS,  AND  RECOMMENDA-
 TIONS FOR FUTURE PROGRAM IMPROVEMENT.
   §  4.  This  act  shall take effect immediately and shall apply to any
 federal shutdown declared on or after such effective date.