ALEXANDRIA, Va. – NCUA said it will remain open and individual accounts will remain federally insured during the partial federal government shutdown, but it cautioned that some credit unions could be affected and they need to be prepared.
The partial U.S. government shutdown took effect Saturday after Congress failed to complete action on the remaining appropriations bills needed to fund parts of the government for fiscal 2026. The stalemate centers on a dispute over Department of Homeland Security (DHS) funding, where Senate Democrats have pressed for new restrictions on Immigration and Customs Enforcement (ICE) following controversial enforcement actions, and House Republicans have not yet brought a Senate-passed funding plan up for a vote before recess.
Credit unions that may be affected include those with members who work for the departments of State, Treasury, Defense, Transportation, Housing and Urban Development, Health and Human Services, Labor, Education and Homeland Security, along with parts of the Executive Office and independent agencies.
With NCUA’s operating budget coming from operating fees and a funds transfer from the National CU Share Insurance Fund, the agency is not affected.
‘Plan to Respond’
“The partial government shutdown could affect credit unions, particularly those with federal employees in their memberships,” NCUA said in a statement
It urged credit unions to plan to respond to members’ questions and consider other actions, such as:
- Ensuring policies provide flexibility to respond to members’ financial needs.
- Preparing for service interruptions if the shutdown affects access to credit union offices located on federal property.
- Prudently working with affected members, including providing advances to individuals receiving direct deposits from the federal government.
- Developing contingency plans with respect to participation in government programs that may be affected by the partial federal government shutdown.
- Communicating response plans to members, staff and volunteers in a timely manner.
- Consistent with safety and soundness, credit unions may want to consider offering special programs to assist impacted members who need short-term loans, create loans with special terms and rates, or offer payment flexibility.
Letter to Review
The agency further encouraged credit unions to review NCUA’s Letter to Credit Unions, 11-CU-05, “Planning and Preparedness for a Potential Government Shutdown,” which provides guidance in the event of a government shutdown.
