If the government does shut down tonight, affecting paychecks of service members, federal civilian workers and contractors, there are resources to help those experiencing financial distress.
The Oct. 1 paychecks for service members won’t be affected, but the first pay period that could possibly be affected is the Oct. 15 paycheck. While military members must continue to report for duty without pay, House lawmakers are pushing for legislation to guarantee the military are paid during government shutdowns.
DOD guidance indicates nearly half of their 741,477 civilian employees could be furloughed, with a number of military spouses working as civilian employees for DOD.
Some banks and credit unions that focus on the military community, and military relief societies, are providing options to help those affected.
Many credit unions have already begun proactive outreach to members, said Haleigh Laverty, spokeswoman for the Defense Credit Union Council. “A shutdown could directly and indirectly affect [credit union] operations, including member paychecks, loan repayments, mortgage and credit card payments,” she said.
Regardless of your financial institution, you should contact them if you experience financial problems because of the shutdown. Different institutions are offering options based on individual financial circumstances, too.
Here are a few examples of options that will be offered:
Navy Federal Credit Union: Eligible members with direct deposit of pay who are service members, federal government employees and federal government contractors paid directly by the federal government may be eligible for a loan with zero interest or fees. Loan amounts of up to $6,000 are calculated based on the most recent direct deposit. Once direct deposit of pay resumes, the amount credited to the account will be deducted automatically as repayment.
USAA: Members who are employed by a federal agency that’s been affected and have received an eligible direct deposit into a USAA checking or savings account within 30 days prior to the beginning of the shutdown will be able to apply for a zero-interest loan equal to the amount of one net paycheck, up to $6,000. Members may also be able to set up special payment arrangements for auto and property insurance premiums, life and health insurance premiums, credit cards, consumer loans, home equity lines of credit, and other credit.
PenFed Credit Union: Members may qualify for a zero-interest paycheck protection loan and other assistance.
Andrews Federal Credit Union: Offering financial assistance loan options, penalty-free share certificate withdrawals, skip-a-payment programs and other assistance with loan programs.
Examples of military relief society plans for assistance:
Army Emergency Relief may provide an interest-free loan equal to the amount of one net paycheck, up to a maximum amount of $6,000, for soldiers and families who experience financial hardship due to lack of pay. Soldiers must repay the full amount within 30 days, and will begin on Oct. 30, after they receive back pay following the government shutdown. AER now offers online applications for loans.
Navy-Marine Corps Relief Society: Offices will be open during normal hours to help families who are experiencing immediate needs to the loss of income from a government shutdown.
Karen has covered military families, quality of life and consumer issues for Military Times for more than 30 years, and is co-author of a chapter on media coverage of military families in the book “A Battle Plan for Supporting Military Families.” She previously worked for newspapers in Guam, Norfolk, Jacksonville, Fla., and Athens, Ga.
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