By Jim Nussle
Where do you turn when your financial situation suddenly changes? For millions of Americans, their local credit union is their trusted financial partner—in good times and bad. And in the midst of a federal government shutdown, hundreds of thousands of impacted federal employees, military members, contractors and their families are now facing economic uncertainty and stress.
Shutdowns have real impact on American lives. According to Axios, 49% of federal workers said they fell behind on paying bills during the last extended shutdown in 2019. Additionally, 27% of federal workers said they missed a mortgage or rent payment, 62% depleted most or all their emergency savings, 42% took on new debt, and 25% needed to go to a food bank for help.
While this shutdown continues, with no clear end in sight and the added element of permanent job losses possible, the credit union industry is stepping up.
There are more than two million federal employees across the country. The Washington, D.C., area has the highest concentration of these workers. The MD | DC Credit Union Association, representing credit unions in Maryland and D.C., has more than two dozen credit unions that are currently offering shutdown assistance to their members. Some of the ways they are doing this includes: new relief loans, extended lines of credit, paycheck advances, waived fees on early withdrawals, loan forbearance and modifications, and more.
In California, which has roughly 200,000 federal government employees, Valley Strong Credit Union initiated its “Special Assistance Resources for Federal Employees.” This effort provides mortgage hardship assistance and skip-a-payment on auto, credit card, or personal loans. In Pennsylvania, with close to 100,000 federal employees, Members 1st Federal Credit Union was ready to provide targeted assistance at the onset of the shutdown.
These are just a few examples, coast to coast, showing how credit unions are standing with their members and communities who need a trusted financial partner. The credit union industry’s mission of “people helping people” is clear in times like these. Not only because the need is there, but because this is how they are intrinsically built. People can count on credit unions.
However, even with resources available from credit unions, the solution to this financial uncertainty rests with Congress. Each day the shutdown lasts, the greater the consequences—at the individual level and on our nation. We urge lawmakers to restore federal government funding and operations. In the meantime, credit unions will do what they always do – be there for their members.
Jim Nussle is President and CEO of America's Credit Unions.