By Scott Simpson
The federal government shutdown has halted paychecks for millions of government employees. Many of these employees and their families are in distress, facing difficult decisions about which essential expenses to cover.
In solidarity with their members, credit unions are doing what they’ve always done: providing relief from financial strain.
In 2019, during a government shutdown that lasted 35 days, credit unions provided more than $46 million in low-or no-interest loans, helping tens of thousands of families avoid financial distress. Today, now living through the longest shutdown in history, credit unions are once again demonstrating what cooperative finance can achieve when urgency meets empathy.
For example, Navy Federal Credit Union is offering its Government Shutdown Loan Program, a 0% APR loan with no credit checks, fees or reporting requirements to its members. The program has provided more than $347 million through 194,000 loans so far; 78% of those enrolled in the program are active-duty military personnel. Valley Strong Credit Union in California has skip-a-payment options for families and mortgage and business lending assistance. Pennsylvania's Members 1st Credit Union immediately launched emergency counseling programs and relief plans for furloughed federal workers.
As the new president and CEO of America’s Credit Unions, I see these efforts as central to our identity. When Washington slows, credit unions move. We act quickly to keep members steady in uncertain times.
Your members aren’t shareholders looking for profit; they’re owners who share your purpose. That distinction guides every decision you make, and every position we take as America’s Credit Unions. When a crisis hits, your first objective is to protect your members. You find solutions in the moment, without worrying about what it will mean for your bottom line. But we know offering solutions at the magnitude we’re seeing amid the shutdown cannot continue forever.
All of this shapes how we advocate in Washington. When I meet with lawmakers, I have no shortage of stories to share from the field. I talk about staff who have stayed late to approve emergency loans or members who are able to keep food on the table because their credit union stepped in.
That same commitment recently guided our movement through one of the most significant policy challenges we have faced in years: protecting the federal tax status that allows credit unions to serve their members with flexibility and compassion. America’s Credit Unions, in coordination with leagues, credit unions, and allies across our movement, worked tirelessly to ensure lawmakers understood what is at stake: the ability of credit unions to reinvest earnings directly into member benefits, community programs, and emergency relief. That’s a collective achievement we should all be proud of, and it’s my intent in my new role to build upon that momentum to ensure credit unions have the freedom and resources to keep putting people first. Especially in times of crisis.
These stories define our mission and drive our policy work, the objectives of which we can summarize across three core principles:
1. Protect the tax structure that allows credit unions to act swiftly and with flexibility in a crisis.
2. Empower members with affordable credit, education and guidance to help them build financial resilience.
3. Advance opportunity by expanding access to credit unions and reaching communities left behind by traditional finance.
Together, these principles remind us that credit unions exist to serve people. The strength of credit unions, from the Central Valley of California to the heart of Pennsylvania and the states and communities in between, lies in the collective stewardship fostered by millions of individuals who pool trust and resources to create financial institutions that answer to their communities.
In the moments when policy and capital withdraw from Main Street, great institutions step forward when others retreat.
To every credit union serving members during this shutdown, thank you. You show that advocacy happens not just in Washington but in branches in small towns across the country.
And to policymakers: If you want to see what works in the American financial system, look first to your local credit union.
Scott Simpson is President and CEO of America’s Credit Unions.