With less than 36 hours to go before December’s stop-gap budget solution runs out, Congress seems to be no closer to reaching an agreement. Currently, no legislation is in place to continue disbursing pay to service members despite a shutdown, as it was in 2013. In anticipation of a budget crisis at midnight on January 20, Navy Federal Credit Union (NFCU) has released their policy.
“We stand ready to help eligible members who expect to have their pay disrupted by the government shutdown, with a no fee or interest charge loan. Offering members our financial support is simply the right thing to do,” said Tynika Wilson, senior vice president of debit card and fund services at Navy Federal.
Congress’ inability to reach a budget agreement would not immediately affect troop pay because paycheck disbursements occur on the first and 15th of every month; however, a prolonged budget battle could adversely affect a February 1 pay date. If such a situation would occur, eligible NFCU members will be able to apply for a 0 percent APR loan, based on their most recent direct deposit of net pay (up to $6,000). The loan would be fee-free and would not incur a credit check. After the government resumes issuing paychecks, “the amount credited to your account(s) will be automatically deducted as repayment,” NFCU documents instruct.
“We’ve been there to help through situations like this in the past, and we’ll continue to do so moving forward. Our members deserve it,” Wilson said in a statement released to MilitaryOneClick.
If negotiations fail to result in a new budgetary agreement, NFCU will update their website with resources and a loan enrollment page on January 20.
USAA has also released their plans for assistance to affected members, which can be found here. At publication, Marine Federal Credit Union has not yet announced their plans; however, they provided financial help to their members during the 2013 shutdown.
By J.G. Noll