Dems introduce bill to protect feds’ credit scores during shutdowns

Senate Democrats introduced new legislation last week aimed at protecting federal workers from knock-on financial penalties they may incur while furloughed or working without pay during government shutdowns.

The 2026 Federal Worker Credit Protection Act (S. 4478), introduced by Sen. Mark Kelly, D-Ariz., would bar consumer reporting agencies like Experion and Equifax from marking down a federal employee’s credit score during or shortly after a lapse in appropriations that affects their employing agency. The measure, which covers furloughed or working-without-pay feds from the beginning of a shutdown that’s at least 24 hours long through 30 days after funding is restored, also provides feds an avenue to request such entries be removed from their credit reports at no charge.

If enacted, the bill would apply retroactively to Feb. 1, 2026, meaning it would nullify any negative consequences Homeland Security Department workers have seen on their credit scores since the start of the 76-day partial government shutdown. The bill is also sponsored by senators Angela Alsobrooks, Chris Van Hollen, both D-Md., Ruben Gallego, D-Ariz., Tim Kaine and Mark Warner, both D-Va.

“Federal workers shouldn’t be punished by a government shutdown that isn’t their fault,” Kelly said. “Earlier this month, I met with Phoenix TSA officers working without pay. They shared how the financial strain they were dealing with—including missing payments—hurt their credit scores. That kind of damage can follow you for years. I’m taking action to make sure the people who keep our country running aren’t hurt by Washington’s dysfunction.”

The bill already has support from the American Federation of Government Employees and National Federation of Federal Employees.

“The sad reality is that all-too-frequent agency funding lapses can permanently harm federal workers, long after the government eventually reopens,” said AFGE National President Everett Kelley. “Simply giving people backpay, as current law requires, does nothing to undo the undeserved damage to their credit ratings, their good name, and their dignity. Senator Kelly’s bill hits pause on negative credit information during periods when feds are still working hard for the American people while drawing zero-dollar paychecks.”

““Federal workers work hard to keep this country running and they’re still being punished because of government shutdowns that aren’t their fault,” said Randy Erwin, national president of NFFE. “For them, falling behind on bills because their paycheck stopped shouldn’t hurt their credit standings, sometimes for years after a shutdown ends.”