Vienna-Based Navy Federal Offers Paycheck Assistance In Federal Government Scenario

VIENNA, VA — With a potential government shutdown looming, the Vienna-based Navy Federal Credit Union is preparing a paycheck assistance program for members if needed.

By the end of March 14, Congress must pass funding for the federal government through September. The Republican-led House passed its funding proposal on Tuesday. But the Associated Press said that the funding proposal would need votes from eight Democrats in the Senate, bringing uncertainty to reaching a deal by the deadline.

Navy Federal Credit Union is again introducing a paycheck assistance program to eligible members as it monitors the chances of a federal government shutdown. The program would provide 0 percent APR loans to eligible Navy Federal Credit Union members. The criteria includes being a military servicemember, federal government employee or contractor paid directly by the federal government; receiving a paycheck via direct deposit with Navy Federal; and having pay impacted by the shutdown of the federal government. Loan amounts depend on the member's the last paycheck direct deposit.

"Economic uncertainty has left many of our members concerned about their personal finances," said Pete Amstutz, Navy Federal Credit Union's senior vice president of savings and membership. "One of the great benefits of being a not-for-profit credit union that exists to serve its members is the ability to offer products and programs like this one, particularly when members have great financial need."

In the event of a shutdown, federal employees receive back pay after a shutdown ends. However, back pay is not a guarantee for contractors who work for private companies that have contracts with the federal government.

Navy Federal Credit Union provided the 0 percent APR loan program during federal government shutdowns in 2011, 2013 and 2018-2019. In the last government shutdown, the credit union provided the paycheck assistance to 20,000 members.

Members may enroll in the paycheck assistance program, find more information and check for updates. Loans would only be provided in the event of a government shutdown with employees not being paid.

The Associated Press contributed to this report.