What is a government shutdown, and how might it affect me as a credit union member?
A government shutdown occurs when Congress fails to pass funding legislation that authorizes the resources needed to maintain specific or broad government programs. This can result in furloughed federal employees, delayed government contracts, and ripple effects on the economy. If you are directly affected, your credit union is here to support you with financial solutions and guidance.
Are my funds at risk during a government shutdown?
No, your funds are safe and federally insured by the National Credit Union Administration (NCUA) up to $250,000 per individual depositor, just like FDIC insurance for banks.
I’m a federal employee/contractor and won’t receive my paycheck. What help can my credit union provide?
Many credit unions offer programs for affected members, including:
- Emergency loans with low or no interest.
- Payment deferral options for existing loans.
- Waivers for fees such as overdraft or late payment penalties.
Please contact us directly at 928-753-8000 to learn about the specific options available to you.
Who and what will be impacted by a partial government shutdown?
- Benefit payments, like social security checks, are usually safeguarded from shutdown-related interruptions; however, customer service-related activities such as card replacements, benefit verifications and customer support could experience delays due to furloughed staff and reduced operations.
- Most federal agencies will shut down operations except for essential employees that carry out national security, law enforcement, safety, and essential functions, such as TSA and air traffic controllers.
- During a shutdown, federal employees generally fall into three categories:
- Workers whose salaries are financed through means other than annual government appropriations and so they continue to work and be paid (i.e., US Postal Services);
- Workers who are furloughed, and,
- Workers who continue to work without pay, also known as “essential” or “excepted” employees.
Neither furloughed nor excepted employees receive pay for the duration of a shutdown, but they may be repaid after funding is reestablished and the government reopens.
- Military personnel’s pay could be impacted during a shutdown, but in recent shutdowns, most military pay has been maintained by congressional action.
How will the government shutdown impact my credit union’s operations?
Credit unions remain stable and operational during a government shutdown. We are member-owned, not-for-profit institutions that prioritize your financial well-being. Our services and support systems will continue uninterrupted.
If your credit union is located in a federal building or on a military institution, please contact your credit union directly to determine alternate locations for any needed in–person financial transactions, as they have likely outlined an alternate location to assist their members.
Will the shutdown impact my ability to access government-related financial services (e.g., tax refunds, federal loans)?
Certain government processes, like IRS operations or federal loan disbursements, may be delayed. If you’re affected, your credit union can help you explore temporary financial solutions to bridge the gap.
If the government can’t fund itself, what happens to the NCUA insurance?
The National Credit Union Share Insurance Fund (NCUSIF) is fully funded and independent of the federal budget process. This means that your deposits remain insured and protected, regardless of a government shutdown.
How long will this shutdown last?
We don’t know exactly how long a government shutdown will last if it takes effect, but be assured, credit unions are built to withstand economic fluctuations, including government shutdowns. Credit unions have experience navigating economic disruptions and are well-positioned to adapt and support members for the long term. Credit Unions have strong capital reserves and operate under conservative, member-focused lending practices. Additionally, the not-for-profit structure allows credit unions to prioritize stability over profits, ensuring they remain a safe and reliable financial partner.
