Credit unions step in to aid unpaid TSA workers during government shutdown.
As federal paychecks stall, institutions in Mississippi and Alabama are offering emergency financial lifelines to affected employees.
As a partial federal government shutdown stretches into its second month, leaving thousands of Transportation Security Administration employees without pay, credit unions in the South are stepping in with emergency financial assistance aimed at helping workers cover basic living expenses.
Keesler Federal Credit Union, based in Biloxi, said it is expanding its Paycheck Relief program to TSA employees who have gone more than a month without receiving pay. The shutdown, which began in February, has disrupted income for workers in the Department of Homeland Security and strained household finances for many families.
Through the program, the credit union advances the amount of a member’s direct deposit paycheck, allowing eligible federal employees to continue meeting financial obligations until government pay resumes. There are no fees to participate, and even nonmembers can enroll by providing proof of recent direct deposits.
“This government shutdown has placed an unexpected burden on thousands of federal employees and their families,” said Joshua Brown, chief operations officer at Keesler Federal. “Our focus is to be there for the people in our communities and help ease some of the financial pressure during this difficult time.”
Keesler Federal has taken its outreach directly to affected workers, sending representatives to the Gulfport-Biloxi International Airport to assist TSA employees in enrolling on-site. Once enrolled, participants can receive advanced payroll deposits for up to 90 days, with repayment automatically deducted when back pay is issued after the shutdown ends.
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The effort builds on the credit union’s response to a previous shutdown. During a 47-day lapse in federal funding last year, Keesler Federal advanced more than 5,000 paychecks totaling $6.5 million to over 1,700 members.
Other institutions are offering similar support. Redstone Federal Credit Union, headquartered in Huntsville, is providing zero-interest loans of up to $15,000 to TSA employees in its service area.
“That helps them make that mortgage payment, or pay their rent, buy groceries, until the government shutdown is … hopefully comes to an end soon,” said Ericka Gorman, senior vice president of lending at Redstone.
Gorman noted that the credit union had assisted thousands of federal workers during previous shutdowns, underscoring the recurring role that community-based financial institutions play during periods of federal disruption.
Credit unions, which are member-owned and not-for-profit, often position themselves as first responders in times of financial stress. By advancing paychecks or offering short-term, low- or no-interest loans, they aim to provide immediate relief while avoiding the high costs associated with alternative forms of credit.
Keesler Federal, founded in 1947, has grown into the largest credit union headquartered in Mississippi, with more than 380,000 members and $5 billion in assets. Redstone, the largest credit union in Alabama, serves more than 544,000 members and manages $8.4 billion in assets.
As uncertainty over the shutdown continues, both institutions say their focus remains on helping workers bridge the gap — one paycheck at a time.
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
