WASHINGTON—As the federal government shutdown stretches into its fourth week, the spotlight may be trained on the partisan stalemate in Washington—but a different story is quietly unfolding. According to Washington Credit Union advocate John McKechnie, credit unions are gaining tangible political capital by showing up.
“In addition to the political theatrics and finger pointing that is dominating the news, the government shutdown is having an effect on the day-to-day life on Capitol Hill,” McKechnie told CUToday.info. “Many offices are closed, as are places to eat, most building entrances, etc. If there’s a silver lining for credit unions, it’s that staff are commenting about how appreciative they are that the congressional credit unions are open for business, doing their job, acting as a safety net.
“I was in the Longworth branch of the House credit union earlier this week and overheard a staffer say to a teller ‘this credit union is like a port in a storm,’” continued McKechnie. “I get a vibe that’s a fairly universal sentiment in Congress. Credit unions are earning their good reputation, coming through when they are really needed, and I have a feeling that is going to pay some very good dividends for the entire industry.”
McKechnie’s comments capture what credit-union advocates describe as a rare window of bipartisan goodwill—an opportunity for the industry to build long-term influence on the Hill by demonstrating its core mission when the lenders are needed most.
Jason Stverak, chief advocacy officer at the Defense Credit Union Council, told CUToday.info that America’s credit unions—especially those serving our nation’s military and veteran communities—are once again proving why they are indispensable to the financial stability of this country.
“While partisan gridlock stalls progress in Washington, credit unions are on the ground, ensuring that servicemembers, veterans, and federal employees have access to emergency loans, payment deferrals, and personalized financial counseling. We are helping families pay their bills, keep their homes, and stay mission ready. That’s the credit union difference—and it’s one lawmakers on both sides of the aisle are seeing firsthand,” he said. “Through this crisis, credit unions are building tremendous credibility and capital with policymakers. Our actions speak louder than any talking points—credit unions are living out our mission every day, serving those who serve our nation.”
Stverak emphasized the leadership, compassion, and financial strength demonstrated by defense credit unions and their peers across the country “make one thing abundantly clear: now is the time to move forward on meaningful legislation that empowers credit unions to do even more good. That begins with advancing the Veterans Member Business Lending Act, which will unlock new opportunities for veteran entrepreneurs and small business owners.”
Stverak added the shutdown should put to rest the “tired” debate about taxing credit unions.
“Credit unions are not the problem—they are part of the solution. We’ve proven through action, not rhetoric, that our not-for-profit, member-owned structure works. When others step back, we step up. Credit unions have once again shown the country why our tax status is justified, our mission essential, and our continued independence vital to America’s financial readiness,” Stverak said.
While McKechnie spoke especially of the congressional campus, the broader credit-union system is stepping in across the country. According to America’s Credit Unions, leagues and individual credit unions are “offering tailored support to impacted federal workers and military servicemembers to ensure members can still meet their financial obligations.”
For example, at USS Federal Credit Union in Washington, the “Government Shutdown Relief Loan Program” allows active federal employees who have lost pay due to the shutdown to borrow up to $5,000 at 0.00% APR for 90 days. Meanwhile at Congressional Federal Credit Union in D.C., the “Furlough Solutions” relief line of credit offers an initial 0.00% APR draw for 60 days if a member is furloughed.
At Navy Federal Credit Union, a long-time primary lender to federal employees and the military, communications via its website remind members that assistance is available for those whose direct deposits have been disrupted.
At Canyon View Credit Union in Utah, federal employees impacted by shutdown are eligible for a Skip-A-Pay or a “Government Shutdown Relief Loan” featuring 0% interest for the first 60 days.
At NIH Federal Credit Union in Maryland, the “S.A.F.E.” (Special Assistance for Federal Employees) loan lets members borrow up to $10,000 if their pay is disrupted by a shutdown.
Port In Storm
McKechnie’s observation that credit unions serve as “a port in a storm” underscores how their steady support during difficult times can yield lasting goodwill and influence. The Cornerstone League recently responded to a request from Rep. August Pfluger (R-TX), providing him with information on what credit unions in Texas’s 11th Congressional District are providing.
America’s Credit Unions reported that Peninsula Credit Union, based in Washington state’s Olympic Peninsula, contacted members early in the shutdown and deployed a comprehensive suite of emergency financial products. Not only are the new products directly helping members, Peninsula has also pivoted to meet needs as they have evolved over the shutdown.
“Credit unions are built on the foundation of people helping people, and this comes directly down to that,” said Peninsula Credit Union Marketing Director Billy Thomas. “If someone were to walk through our doors and say that financially they needed help, we always try to get to yes.”
Brazos Star Credit Union in College Station, Texas, was founded by federal employees in the U.S. Department of Agriculture, Federal Bureau of Prisons, Social Security Administration, and U.S. Postal Service. Its board unanimously approved the rollout of a Government Shutdown Bridge Loan for federal employees affected by the latest government shutdown, which can replace up to a month’s salary, with the first payment deferred for 45 days, ACU noted.
“We felt that it is imperative to reach out to our members to assist their families to alleviate their fears and frustrations of not being able to pay their monthly bills, mortgages and weekly grocery bills,” said Brazos Star Credit Union President/CEO Mary Beth Borroni.
Brazos Star has also set into motion fee-free loan extensions, temporary increases in lines of credit, and personalized loans to fit members’ needs.
Alabama-based AmFirst introduced a “Here When You Need Us Most: Special Relief Loan” to replace a member’s monthly salary with terms up to 12 months.
To highlight credit union support, ACU has introduced a new state-by-state list of credit unions offering shutdown services on the trade association’s Government Shutdown Assistance webpage. Policymakers and credit union members can see what services are available from credit unions in specific states, access league resource pages, and it also contains a link to NCUA’s credit union locator tool as well.