With many federal employees heading toward a possible second missed paycheck at the end of the week — and little promise of an end to the government shutdown in sight — many are turning to financial assistance options to try to stay afloat.
Some financial support windows, however, are beginning to close. After seeing the writing on the wall last week, the Federal Employee Education and Assistance Fund (FEEA) officially suspended its shutdown grant program. The non-profit organization had to halt the program after receiving over 10,000 applications from lower-income federal employees, and fully depleting the initial $1 million it set aside to fund the grants.
“We are heartbroken at having to halt new applications to FEEA’s program just as many feds are about to miss a full paycheck, and we are actively seeking donations in hopes of reopening the program,” Robyn Kehoe, FEEA’s executive director, said. “Our thoughts are with all of the families struggling right now.”
More than 7,000 excepted and furloughed workers, who are currently going without pay, will receive one-time “micro-grants” of $150 from FEEA. The grants are meant to help cover costs of basic needs, such as groceries or gas. About 80% of grant recipients who provided feedback to FEEA said they are using the money to buy food.
]]>
At the same time, various financial institutions, including many federal credit unions, have been offering loans and other financial assistance options in an effort to help federal employees as they live without paychecks under the lapse in appropriations. Some institutions are reporting higher volumes in the current shutdown, compared with the most recent shutdown in 2018-2019.
Federal News Network contacted several organizations offering financial options to feds, and compiled information on how many members they are hearing from, the amount they have offered in loans, the timeline for distributing benefits and any potential challenges they might face if the shutdown drags on. Here is a summary of the responses we have received so far:
FedChoice
The FedChoice Federal Credit Union reported that it has received more than 1,200 applications for loan assistance from federal employees. That exceeds the total number of applications the credit union received during the previous 35-day shutdown in 2018-2019.
FedChoice also noted that, on average, it received 28.5 loan applications per day in the prior shutdown. In comparison, the credit union is currently seeing an average of 33.2 applications per day — representing a 16.5% increase. Due to the “unprecedented volume,” FedChoice said it is taking about 72 hours to process new loan applications.
“The main challenge we will face is the fact that every financial institution has limited liquidity,” FedChoice President and CEO Brett Noll said. “When federal employees are not paid, our assets decline and so does the amount of funds we have available to lend. We do have borrowing mechanisms in place, however, they are limited. FedChoice will continue to manage the situation and do the very best we can to help federal employees in need.”
A FedChoice spokesperson added that the organization has also:
- Approved over $1.65 million in loans for federal employees since the shutdown began
- Skipped more than 250 due payments for current members, for a cumulative total of about $100,000
- Added close to 300 new members in the past month, all seeking financial assistance
USAA
The United Services Automobile Association (USAA) said it has so far delivered over $384 million in relief to more than 127,000 military service members and federal employees who are USAA members.
]]>
A spokesperson for USAA said that grand total includes:
- Approving about 101,000 loans, totaling $358 million, for members currently going without pay
- Granting payment extensions for 15,400 consumer loans, freeing up a total of $21 million to cover other, more immediate costs
- Providing extensions for over 11,500 credit card payments, totaling $4.4 million
- Waiving or refunding overdraft fees for nearly 50,000 deposit accounts
USSFCU
The U.S. Senate Federal Credit Union (USSFCU) has seen a surge in loan applications from federal employees over the last month. A spokesperson said more than 1,400 individuals have applied for a shutdown loan since Oct. 1.
The organization said due to the “significant demand,” it is currently backlogged and seeing an average processing time of 3-5 business days for the time it takes from a submitted application to a final decision on the loan.
“We will have to evaluate what the coming weeks hold for us, but we will do whatever we can to support federal workers,” a USSFCU spokesperson said. “We have seen applications from many different federal agencies and from all around the nation, so we know there is a significant need there. If we can meet that need in any meaningful way, we will do it.”
The spokesperson added that:
- There have been 800 new memberships since the end of September
- More than 700 shutdown assistance loans have been approved and funded, totaling about $3.5 million
Navy Federal Credit Union
Throughout the shutdown, Navy Federal Credit Union has been offering a “paycheck assistance program” to active-duty service members, federal employees and contractors who have a direct deposit account with the institution. The temporary financial assistance from the program is paid back once feds receive back pay at the end of the shutdown.
A Navy Federal spokesperson said the program’s uptake is “substantially higher” now than the 19,000 members who used the program during the 2018-2019 shutdown. The spokesperson did not immediately respond to a request for the program’s current numbers.
“We understand how unsettling a government shutdown can be for our members and their families. In these challenging times, it’s important our members know we are here to provide support through the first impacted pay period,” the spokesperson said. “The paycheck assistance program is a lifeline for many families right now.”
]]>
If you would like to contact this reporter about recent changes in the federal government, please email drew.friedman@federalnewsnetwork.com or reach out on Signal at drewfriedman.11
Copyright
© 2025 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.
