With Congress racing to avert a funding lapse, financial cooperatives move quickly to cushion the impact on military members, civil servants and contractors.

As lawmakers in Washington edged late Wednesday toward a potential deal to avert a government shutdown, credit unions across the country were already preparing for the possibility that federal paychecks could be delayed as early as Saturday.

President Trump and Senator Chuck Schumer of New York, the Senate’s minority leader, signaled tentative progress toward an agreement that would split funding for the Department of Homeland Security from a broader six-bill spending package needed to finance much of the federal government through the rest of the fiscal year. The maneuver, according to two officials familiar with the talks, could allow Congress to keep most agencies operating while negotiations continue over immigration policy.

Still, with the Jan. 30 deadline to extend federal spending authorization fast approaching, the risk of a partial shutdown remained real. In response, several credit unions with deep ties to government employees and military families moved to activate contingency plans designed to help members weather any interruption in income.

Navy Federal Credit Union, the nation’s largest credit union, said it would again offer a 0% APR paycheck assistance program to eligible members whose pay is disrupted by a shutdown. The program, available to military servicemembers, federal employees and government contractors paid directly by the federal government, would allow members to bridge the gap until salaries resume.

“We recognize that the possibility of a government shutdown can create significant uncertainty for our members and their families,” said Matt Freeman, the $194 billion-asset Navy Federal’s senior vice president of digital payments. “Our priority is making sure our members know we are committed to providing reliable solutions and ongoing support in their times of need.”

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Eligible members could begin registering for the program on Jan. 28 through Vienna, Virginia-based Navy Federal’s mobile app or website. The credit union said it would continue to provide updates and resources as negotiations unfold.

Navy Federal has deployed similar programs during previous shutdowns in 2011, 2013 and 2018–19, as well as in 2025, when it made more than 190,000 disbursements totaling $352.4 million to over 82,000 members.

Other credit unions were also positioning themselves to respond quickly. The $8.3 billion-asset Members 1st Federal Credit Union, based in Enola, Pennsylvania, said it had spent weeks preparing relief options for members affected by a shutdown.

“At Members 1st, our mission has always been to support our members, especially in times of uncertainty,” said Mike Wilson, the credit union’s president and chief executive. “When someone is facing a sudden hardship, your financial institution should be a first line of defense, a source of support and peace of mind.”

The credit union said it was prepared to offer payment-deferred personal loans, no-fee skip-a-payment options, loan extensions, financial assistance loans and financial counseling through GreenPath.

“Every member’s situation is unique, which is why our team is committed to providing personalized support and guidance,” Wilson said.

On Capitol Hill, the legislative outlook remained uncertain. The House, which passed its appropriations bills before leaving for a district work session, has left the Senate with a compressed timeline to advance the remaining measures. Senate Democrats have indicated they plan to oppose the Homeland Security funding bill, raising the prospect of a lapse in funding at 11:59 p.m. Eastern time Friday.

For credit unions, the situation underscored a familiar role during moments of national disruption: stepping in to provide financial stability when federal systems falter. As Wilson put it, “This is the credit union difference. We are here to help and stand in the gap for unexpected events such as natural disasters, government shutdowns or pandemics.”

“Our priority is making sure our members know we are committed to providing reliable solutions and ongoing support in their times of need.”

– Matt Freeman
SVP of Digital Payments
Navy Federal Credit Union