WASHINGTON—Will credit unions and their members face a government shutdown at the close of the month?
Looking ahead to the September funding deadline, America’s President and CEO Jim Nussle acknowledged that striking a budget deal will be difficult.
He said everything he’s seeing suggests “this will be challenging,” even with two weeks left for Congress to act. At the same time, he noted that lawmakers surprised observers by averting a crisis back in March, leaving the door open for another last-minute breakthrough.
Nussle declined to predict the outcome but stressed that ACU is closely watching how potential “must-pass” measures—such as a continuing resolution or the National Defense Authorization Act—might affect credit unions.
“We’re obviously monitoring the puts and takes that could occur at a juncture like that and any mischief that might be afoot for credit unions,” he said.
NCUA Operations Unaffected by Shutdown
The Defense Credit Union Council emphasized NCUA operations will continue even if a shutdown occurs.
“First and foremost, we want to reassure our members that the National Credit Union Administration will continue normal operations even if the federal government shuts down,” said Jason Stverak, chief advocacy officer of the Defense Credit Union Council. “NCUA’s funding is independent of congressional appropriations – it comes from credit union fees and the Share Insurance Fund – so credit union oversight and deposit insurance remain uninterrupted. Every member’s deposits will remain safe and insured throughout a shutdown, just as they are in normal time s. This stability is a cornerstone of our system’s strength.”
Impact on Defense Credit Unions and Their Members
Steverak added that DCUC recognizes that a prolonged government shutdown could severely impact many credit union members, especially military personnel, veterans, federal employees, and contractors who might miss paychecks.
“Defense credit unions often serve large populations of these members, making a shutdown a critical moment for us to shine in support of those who serve our nation,” he said. “Past shutdowns have shown that members can become anxious about covering basic expenses – from gas in the car to groceries – when their pay is delayed. No one should have to worry about their family’s finances while they are on the front lines protecting our nation, and we are committed to ensuring they do not face financial hardship due to political gridlock.”
Stverak pointed out that over the years, credit unions have developed special support programs to assist members through crises, just as they did in previous shutdowns.
In the last major shutdown (2018–2019), credit unions nationwide stepped up in remarkable ways, providing millions in emergency low- or no-interest loans, extending loan payment due dates for over tens of thousands of members, and even welcoming new members who turned to credit unions for relief, Stverak noted.
“This history of stepping in demonstrates the credit union philosophy of ‘people helping people’ in action. It’s in our DNA to go above and beyond to keep our members’ financial well-being intact, regardless of external circumstances,” Stverak said.
Proactive Outreach And Support For Affected Members
Stverak said DCUC is urging all credit unions – especially those serving military bases or large numbers of federal workers – to reach out now to members who might be impacted.
“Clear, compassionate communication is key. Credit unions should notify members that help is available and encourage anyone facing difficulty to contact their credit union early. Our member-owned credit unions are prepared to stand by you,” Stverak noted. “Even before any shutdown begins, many are contacting potentially affected members, letting them know ‘we are here to help you get through this’.”
Credit unions are also reviewing their policies to ensure maximum flexibility, Stverak said.
“We advise credit unions to follow NCUA’s guidance: be ready to adjust payment schedules, waive fees, and even prepare for any branch access issues (for example, if a branch is located on a federal installation that might have restricted access during a shutdown),” he said. “Our message to credit unions is clear: proactively deploy your financial assistance tools now. Don’t wait until a member is in crisis – reach out and offer solutions in advance.
“All these measures reflect a singular commitment: to support our members’ financial stability no matter what,” continued Stverak. “Unlike many profit-driven institutions, not-for-profit credit unions exist to serve their members’ best interests. We want every military family and federal worker to know: your credit union has your back. If you are worried about making ends meet during a shutdown, please reach out to your credit union – you will find willing partners ready to help you.”
Emphasizing ‘People First’ In Uncertain Times
“Defense credit unions have weathered many storms side by side with our members, and this situation is no different,” Stverak said. “Financial preparedness and member care are at the heart of the credit union mission, and DCUC is ensuring that mission is fully on display now. DCUC is in close communication with both federal regulators and the Department of Defense to coordinate support.”