Banks Reach Out to Furloughed Feds

With paychecks hanging in the balance, banks offer loans and credit to federal workers.

The shutdown has left federal employees nationwide unsure of exactly when – or if – they will receive their next paycheck. A bill that would grant retroactive pay for furloughed employees is in limbo, stuck in the Senate. And even though “excepted” employees working during the shutdown know they will eventually be paid, it is unclear when that will happen; President Obama has vowed to veto a measure that would have ensured they didn’t miss any paychecks.

It’s not all bad news for federal employees trying to keep up with their bills, however.

Many banks across the country have pledged to help workers affected by the shutdown. TD Bank has launched TD Cares, a program that advances furloughed feds $1,000 without any interest, reimburses late fees on credit cards and adjusts mortgage payments through Nov. 2.  

"Uncertainty surrounding the government shutdown has our customers concerned and TD is here to help," Nandita Bakhshi, executive vice president at TD Bank, said in a statement. "By launching TD Cares, our hope is that we can make it easier for our customers to cover their bills and make ends meet if they're not receiving their pay."

The Navy Federal Credit Union is offering special rates on its overdraft line of credit, loan assistance and expedited approvals for increases in credit limits. It had guaranteed to cover the mid-October paychecks for its active duty military customers, but Congress has since intervened to ensure those individuals receive their regular pay on time even if the shutdown continues.

Capital One posted a message on its website stating it is prepared to help individuals with the “unanticipated financial challenges” the shutdown has presented.

“We encourage you to contact us if you need assistance,” Capital One said. “We have programs in place to help all customers experiencing financial difficulties due to hardship situations, which includes sudden loss of income.”

Some feds will also receive a break on their car payments, with Hyundai offering furloughed workers a payment deferral program during the shutdown.

"We recognize the impact on family budgets that the furlough will drive," John Krafcik, CEO of Hyundai Motor America, said in a statement, adding this is Hyundai’s way of telling feds “we’ve got your back during this uncertain time.”

Feds can typically take out a loan against their retirement account in difficult times, but the Thrift Savings Plan has noted enrollees in non-pay status are prohibited from doing so, as the payments on the loans are taken from payroll deductions. Employees may be able to tap into their TSP account, however, though a “financial hardship” withdrawal. This requires an enrollee to demonstrate one month of negative cash flow.

Financially-strapped employees could also try the Federal Employees Education and Assistance Fund, which typically provides no interest loans to public servants in need. Due to an influx of loan requests from employees furloughed by sequestration, however, FEEA has severely cut back on its fed-assistance program during the shutdown.

Keep the Shutdown, Bring Back All Workers

In recent weeks, lots of lawmakers have said lots of things about federal employees’ pay.

Democrats have pointed to Republican efforts to issue retroactive pay to furloughed workers as a reason the government should reopen. Republicans have attempted to exploit Democrats’ sympathy for the federal workforce to bring them to the negotiating table. Members of both parties have attempted to show empathy by promising to forfeit their own pay in solidarity with the furloughed ranks.

From Rep. Doug Lamborn, R-Colo., comes a novel suggestion: continue the shutdown, but end the exempted/excepted/non-excepted distinctions and pay all federal employees, on time. On the House floor, Lamborn elaborated he envisioned his bill would bring all federal employees back to work as the shutdown drags on.

Rep. Mark Sanford, R-S.C., expressed a similar position Tuesday.

“If you are going to get back pay, you ought to be working for your pay,” Sanford told CNN.  

In the days before this current crisis, there was a different term for Paying All Federal Employees On Time To Conduct Regular Work During a Government Shutdown; it was simply called “government.” 

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.