To some extent, people work for the government because of the stability. You are not going to wake up one morning to find that the United States Government is out of business, so an emergency fund seems less essential than if you were working at a startup with 3 employees.
With government work no longer being considered more stable or reliable than the private sector, the one advantage that the government has used to recruit workers and pay them less than average is gone. That means government work is going to go un-done, or they're going to have to start paying employees more to make up for the risk. That only hurts us taxpayers.
I'm not assuming that i will lose that money.
But yes in general if i have emergency money, its out of scope and it doesn't 'hurt' directly when i actuall have to lose it. Thats the point of it. But still when i lose it, i have to replace it later right?
If there is no condition under which you're expected to use it, it's just stranded money...