WASHINGTON – Listing America’s Credit Unions along with dozens of other trade associations, Rep. Maxine Waters (D-CA) has sent a letter expressing concern over the paychecks that will be missed by government employees and the military if the government shutdown continues. She called on industry leaders to encourage their member companies to mirror steps taken in previous shutdowns to mitigate consumer harm and to coordinate closely with credit reporting agencies to prevent unfair credit reporting during this period.
‘Refuse to Negotiate’
“I write as President Trump and Congressional Republicans continue to refuse to negotiate with Congressional Democrats, resulting in a shutdown of most of the federal government, which began on Oct. 1, 2025,” wrote Waters, who is the ranking member of the House Financial Services Committee. “Through no fault of their own, hundreds of thousands of federal workers, servicemembers, and federal contractors have been adversely impacted and may find it difficult to meet their credit obligations while they are not being paid. Moreover, any missed payments caused by the government shutdown could have undue, lasting impacts on their reported creditworthiness, making it difficult for them to obtain future credit or increasing their borrowing costs.”
‘Take All Prudent Actions’
“I believe your member companies should take all prudent and appropriate actions, including those outlined in these past interagency statements and consistent with applicable law, to help any consumer – whether a federal employee, federal contractor, or others – who may be affected by the shutdown,” the letter continued. “…Both financial institutions and consumer reporting agencies should also take steps to ensure that modified credit arrangements intended to help customers fulfill their financial obligations do not end up being reported to, and coded by, consumer reporting agencies on a person’s credit report in a manner that hurts the creditworthiness of the affected individuals.”
Groups That Received Letter
The letter was sent to the American Bankers Association, American Fintech Council, America’s Credit Unions, Bank Policy Institute, CDFI Coalition, Community Development Bankers Association, Consumer Bankers Association, Consumer Data Industry Association, Electronic Transactions Association, Financial Technology Association, Financial Services Forum, Inclusiv, Independent Community Bankers of America, Mid-Size Bank Coalition of America, Mortgage Bankers Association, National Bankers Association, and Opportunity Finance Network.
Defense Council Responds
In response to the letter, the Defense Credit Union Council (DCUC) said in a letter, “DCUC and our member institutions have been leading the credit union response to this crisis and will continue to do everything in our power to help those who serve our nation weather this disruption.”
The letter is signed by its chief advocacy officer, Jason Stverak.
DCUC shared that it has launched its Government Shutdown Resource Center and has continued to equip member credit unions with best practices, communications templates, member outreach tools, and official press briefs.
DCUC also noted that since the shutdown went into effect on October 1, credit unions across the nation have implemented a wide range of assistance programs, including 0% and low-interest emergency loans, payment deferrals, fee waivers, and free financial counseling.
“These efforts have helped servicemembers, veterans, and DoD employees bridge pay gaps, avoid credit damage, and maintain financial stability. Collectively, these programs represent millions of dollars in direct relief for military and federal families nationwide,” DCUC said.
Permanent Fix Needed
Despite these extraordinary steps, DCUC stressed in its letter that the recurring threat of government shutdowns demands a permanent legislative solution to protect those who serve.
“Those who defend our nation deserve financial certainty and should never be used as bargaining chips in a budget standoff,” said Stverak.
DCUC further said it welcomed continued dialogue with Ranking Member Waters and her staff to share details of member credit union relief programs and discuss next steps in securing long-term financial readiness for military families.
California, Nevada CUs Respond
Separately, in response to the shutdown, California’s Credit Unions and Nevada’s Credit Unions announced a broad package of financial relief options for employees of the federal government impacted by the government shutdown.
The leagues said that according to Congressional Research Services, over 155,000 federal employees work in California and several thousand in Nevada, a figure that does not include the thousands of employees who work for federal contractors and may also be impacted.
During the shutdown, credit unions throughout California and Nevada are offering various support services, which the leagues said may include:
- Loan Relief: Loan payment deferrals and temporary hardship modifications.
- Emergency Assistance: Short-term, low- or no-interest loans to cover essential expenses.
- Fee Waivers: Waiving late fees, overdraft fees, and penalties.
- Financial Counseling: Access to financial wellness counselors to provide budgeting and debt management guidance.
- Online Resources: Tools and information on our website to help with everyday expenses such as food, utilities, housing and healthcare.
Focused on Mission
“Credit unions are financial institutions focused on their mission of people helping people. This includes times of need and emergencies, such as the government shutdown,” Stephanie Cuevas, SVP-federal advocacy for California’s Credit Unions and Nevada’s Credit Unions, said in a statement. “Credit unions are moving quickly to offer support to federal workers — from TSA agents to air traffic controllers, service members, and more. The goal is to support families during these times of uncertainty while the shutdown is resolved in Washington, D.C.”
Houston, We Have a Solution
In Houston, TDECU has launched a Furlough Relief Loan program to support members who have been furloughed due to the current government shutdown.
“TDECU was founded on the idea of people helping people and, during times of uncertainty, it is our mission to stand by our Members and provide the support they need,” TDECU Chief Growth Officer Josh Brian said in a statement. “The Furlough Relief Loan is one way that we are living out that commitment.”
The Furlough Relief Loan offers loans up to $5,000 for 12- or 24-month terms, and Members have 90 days to make their first payment. Additional details can be found at TDECU.org/government-shutdown.
TDECU said it offers several other programs to assist Members, such as Skip-A-Pay and credit cards with no annual fees and zero-percent balance transfers. Additionally, TDECU Wealth Advisors are available to help members plan for long-term financial stability and debt management, it said.
