By Michael Wilson
The credit union philosophy is universally founded on people helping people. That includes financing member milestones like starting a new business or walking a young family through a skip-a-loan payment option when money is tight.
We understand that life can change in an instant and many times through no fault of our own. Whether it’s a government budget impasse, a policy shift, or an unexpected disruption, these moments can create financial uncertainty for the 615,000 members we serve. That’s why we prepare in advance, so when the unexpected arrives, we’re ready with solutions to help our communities navigate whatever comes next.
As one of 4,411 federally insured credit unions in the U.S. serving over 143 million members, it’s been our privilege to support our members and the communities they call home through every season, including challenges and uncertainty. Credit unions are more than financial institutions; we are a first line of defense in offering assistance and resources to help our members overcome financial hardships. We are a steady hand when people need it most.
In preparation for a potential federal government shutdown, which is now in effect, we created a Budget Impasse Program specifically to support people who are directly affected by the federal funding lapses.
This crisis has wide-ranging impact; its effects ripple through our communities, touching federal employees and their families, government contractors, veterans, and countless individuals who depend on non-essential federal services.
History reminds us that during the 2019 U.S. government shutdown, which lasted 35 days, 49% of federal workers said they fell behind on paying bills.
According to Axios:
• 27% missed a mortgage or rent payment;
• 62% had “depleted most or all of their emergency savings”;
• 42% took on new debt (credit cards or loans) to cover their expenses; and
• 25% needed to go to a food bank for help.
Today MarketWatch reports that 57% of Americans are living paycheck to paycheck, defined as having little to no money left over after paying for basic living expenses—food, rent, utilities, daycare, healthcare, etc.
In a Federal Reserve poll, just 69% of adults say they could handle a $500 emergency expense with theircurrent savings.
Moments like these can create real financial strain, and our response is proactive and immediate. Our 2025 Budget Impasse Program provides lending assistance, flexible payment options to ease financialburdens, and offers our members a safety net to survive the ripple effect of a federal government shutdown.
It’s in these critical disruptions that credit unions step up. Each member’s circumstances are unique, but we are committed to understanding their needs and creating a personalized financial solution to bridge the gap.
For some members, that might mean short-term financial hardship loans. For others, it could be extensions or skip-a-payment options on qualified loans. We also offer penalty-free access to share certificates and one-on-one financial counseling through GreenPath.
Credit unions put people above profits and treat our member-owners as we would our own families. When someone faces a difficult financial decision—or worse, a devastating consequence of a government shutdown—they need to know they have a partner who is ready to provide resources.
We have seen this firsthand throughout our history, especially during the COVID-19 pandemic when credit unions played a pivotal role in supporting local businesses through Paycheck Protection Program(PPP) loans, and we ranked as the ninth-largest provider nationwide. While a government shutdown presents a different set of challenges, the principle remains the same: we step up and provide support when it is needed most.
Times of uncertainty remind us why the work we do matters. It also reminds us of the importance of community and the power of coming together to help one another. Credit unions exist to provide that support, and we take that responsibility seriously.
This is the credit union difference. It is personal, and it is at the heart of every financial and educational service we provide. And when our members need us, we are here, ready to help, and committed to making a difference.