Credit Unions, Trade Groups Prepare for Potential ‘Mass Firings’ of Federal Employees

WASHINGTON–The credit union trade groups are preparing for a potential first-ever scenario where there could be “mass firings” by the White House of federal employees at agencies should there be a government shutdown after Sept. 30.

They also continue to offer resources to credit unions to help affected credit union members. 

The threat of such firings  marks a significant departure from past shutdowns, where the standard practice was to temporarily furlough non-essential workers. 

The CU Daily contacted NCUA for comment but the agency has not yet responded. 

The White House Office of Management and Budget (OMB) circulated a memo to agencies telling them to prepare for potential “Reduction in Force” (RIF) notices for employees in programs funded by annual appropriations.

‘Not Consistent With President’s Priorities’

The directive specifically targets programs “not consistent with the president’s priorities.” While some employees would be furloughed, the RIF notices would serve as the first step toward permanent job cuts for others, the OMB said. 

According to the memo, the government could reopen with only the “minimal number of employees necessary to carry out statutory functions,” leaving others permanently dismissed. 

OMB has confirmed that the reduction in force will not take place should Congress successfully pass a “clean” short term funding bill by Sept. 30. By “clean,” Republicans have said it cannot include Democratic priorities, including funding for health care. 

Resources Available

America’s Credit Unions has related resources available here.

The Defense Credit Union Council has related resources available here

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