WASHINGTON —With another government funding deadline fast approaching, credit union trade groups are warning that a potential shutdown at the end of January could once again hit military families and federal workers first, even as congressional leaders signal tentative progress toward a deal to keep the government open.
The Defense Credit Union Council said it remains hopeful that Congress can come together and prevent a government shutdown on January 30.
“But prudence requires us to prepare credit unions for the very real possibility that Washington once again fails to act,” said DCUC Chief Advocacy Officer Jason Stverak. “Defense and veterans credit unions have lived through this before, and we know the disruption and anxiety it creates for service members, military families, federal employees, and the men and women of the Coast Guard.”
Stverak noted that during the last shutdown, financial stress rippled quickly through military communities—missed paychecks, delayed benefits, and families forced to make difficult choices through no fault of their own.
“Credit unions stepped up, as they always do, but these situations are entirely avoidable. Those who volunteer to serve our nation should never be collateral damage in a political standoff,” he said. “That is why we are urging Congress to use the time available in January to enact legislation that ensures the military and the Coast Guard are paid, regardless of whether the government shuts down. Guaranteeing pay for those who protect our national security should not be controversial or partisan. It is a basic obligation.”
Stverak added that credit unions will continue preparing to support their members if a shutdown occurs.
“But our message to lawmakers is clear: do not wait until families are hurting to act. Protecting the pay and financial stability of those who serve must be a priority now, not after the damage is done,” he said.
ACU’s Perspective
Meanwhile, Greg Mesack, senior vice president of advocacy at America's Credit Unions, said the possibility of another government shutdown will likely dominate Congress’s agenda in January, but he sees a credible path toward avoiding one.
Mesack noted that appropriators have already announced topline funding numbers—long a major sticking point between the House and Senate—and have outlined a plan to move several smaller legislative packages. That progress, he said, reflects an initial agreement and a framework for moving forward, even though significant hurdles remain before final legislation is enacted.
“There’s still a wide gap between having a plan and actually getting something passed,” Mesack said, cautioning that the risk of a shutdown cannot be dismissed entirely. However, he emphasized that neither party appears eager to relive the disruption seen in October and November.
According to Mesack, leadership in both parties and both chambers is motivated to reach a deal, even as the workload ahead is substantial. Congress must move three packages of bills through the House and Senate in a compressed timeframe, with deadlines looming in late January.
“That effort is going to take a lot of time and energy, and it will likely dominate most of the January agenda,” Mesack said. “But there is both a way forward and a real willingness on both sides to get it done.”