WASHINGTON–With Congress out of session this week, much of the attention is on the partial government shutdown of the Department of Homeland Security (DHS), with credit unions hopeful negotiations are taking place behind the scenes that will resolve the impasse that could affect more than a quarter-million workers who are set to miss their first paychecks on Feb. 27.
Given that many of the DHS’ workers are deemed “essential,” they are technically working without a paycheck right now should the disagreement over funding—caused by Democrats’ pushback on actions taken by Immigration & Customs Enforcement (ICE)—continue without a resolution.
“As we saw (during the last government shutdown), things dragged on and the impact gets greater and greater,” Greg Mesack, SVP-advocacy with America’s Credit Unions, said during a call with the media. “Although it hasn’t had a huge impact on credit unions yet, we’re still keeping track of that. We do have credit unions that serve the folks in the Department of Homeland Security and we know it impacts them.”
Some ‘Positives’
While Congress isn’t in town, Mesack said there are some positives in that discussions over reaching an agreement are continuing between Congress and the White House and that the talks are “not being done via press release,” and instead “actual meaningful negotiations are happening.”
Mesack said he is hopeful that pushing a deal over the finish line will not require some type of disaster (FEMA falls under DHS) or slowdowns begin at airports as TSA workers increasingly grow absent.
California CU Offers Help
Meanwhile, in Glendale, Calif., California Credit Union is offering special relief programs to support current members whose pay has been affected by the partial government shutdown.
CCU said programs include:
- Loan Payment Assistance: Members may skip a payment, with all fees waived, on their Consumer auto loan and/or Signature Plus loan (personal loan)
- Penalty-Free Certificate Withdrawals: Members with certificate accounts may request early withdrawal to cover expenses with no fees or penalties.
- Reduced Rate (APR) Signature Loans: Members may apply for a signature loan at a 4.00% lower rate than the current lowest rate offered by the credit union. Members may receive up to two times their most recent net paycheck, up to $3,000.
“We know how disruptive and stressful a government shutdown can be for our members and their families,” President/CEO Steve O’Connell said in a statement. “As a member-owned cooperative, our priority is to stand by our members when they need us most. These relief programs are designed to provide flexibility, ease financial pressure and ensure our members have access to the support and resources they need during this challenging time.”
