WASHINGTON— As the government funding deadline looms, both the Defense Credit Union Council and America’s Credit Unions warn a shutdown now appears all but inevitable.
And, developments in Washington Monday afternoon, won't likely change their opinions, as
“We’re all waiting for today’s 3:00 p.m. meeting with the President, the House speaker and minority leader, and the Senate majority and minority leaders. Hopefully that brings some clarity,” said Defense Credit Union Council Chief Advocacy Officer Jason Stverak during a call with the media Monday morning. “But based on the leaks from meetings over the weekend, it appears we are most likely heading into a government shutdown at midnight on the 30th.”
“It won’t surprise anyone when I say that nearly all the focus in Washington right now is on government funding and the looming shutdown,” said Greg Mesack, SVP of government affairs at America’s Credit Unions. “Whether lawmakers will reach a resolution remains unclear. As we said last week, we didn’t believe they would, and that’s still our view today. There’s a high-profile meeting at the White House today with congressional leaders and the President, but so far no one seems willing to give ground. It looks like we’re still very much careening toward a shutdown.”
Mesack noted that on the House side, leadership has made it clear they’ve already passed a clean continuing resolution and feel they’ve done their part.
“They aren’t planning to bring members back this week with nothing new to vote on. (House Financial Services Committee) Chairman French Hill had previously released a schedule of hearings for this month, and those may be impacted if the House doesn’t return. For now, most other business on Capitol Hill is essentially on hold until the shutdown question is resolved,” Mesack said.
Reaching Out To Members
Stverak emphasized that DCUC is focused on the shutdown and its impacts—not only on the operation of government, but also on credit unions directly and indirectly.
Stverak addressed how the trade group’s credit unions have been reaching out to members.
“As we’ve been saying for the past month, many of our member credit unions have already followed our advice and begun outreach to members about potential impacts,” Stverak said. “If this drags on for weeks, it could mean missed paychecks, challenges making loan or mortgage payments, credit card issues, and more. Credit unions are preparing programs to help their members navigate what could be a very troubling financial disruption. Our message is simple: if you have a question, contact your credit union. And if a credit union has a question, they should contact NCUA. We want to ensure people know there are resources in place.”
Mesack pointed out ACU published a list of resources for its member credit unions last week.
“And we’ve already begun hearing encouraging stories about steps credit unions are taking to prepare and assist their members,” Mesack said. “Our communications team has additional information available, but the key message is the same: credit unions are once again stepping up to support their members in times of stress, just as they always have. That’s something we’re really proud of.”
Stverak said DCUC continues to advocate for Congress to move forward with a funding solution.
“Just last Friday, we sent another letter to Capitol Hill specifically about the Coast Guard,” Stverak said. “As many of you know, the Coast Guard is funded through the Department of Homeland Security, not the Department of Defense. That means Coast Guard members will go unpaid during the shutdown unless legislation is passed. We’ve urged the House to support a measure that would keep Coast Guard members paid, just like their DoD counterparts.”
Indirect Effects
Beyond direct impacts to servicemembers and their families, there are indirect effects as well. For example, the shutdown would suspend authorization for the National Flood Insurance Program, which could delay home purchases and closings, Stverak pointed out.
“As far as timing: the House is not scheduled to be in session this week, though they could return on short notice. House Democrats are in town, but Republicans are not,” Stverak noted. “The Senate is back in this afternoon with votes this evening, but they’re waiting to see if there’s any agreement. We know the House has already passed a clean CR, but the Senate doesn’t currently have 60 votes to advance it.”
POLITICO reported that congressional leaders emerged from a high-stakes Oval Office meeting with President Donald Trump on Monday without reaching a breakthrough, significantly increasing the chances of a government shutdown beginning early Wednesday. Senate Minority Leader Chuck Schumer told reporters at the White House, “There are still large differences between us.”
POLITICO added that another person granted anonymity to describe the closed-door meeting said it was a "frank discussion” but that the two sides were “too far apart” at this point.
Stverak added that on the Senate floor right now is the National Defense Authorization Act (NDAA), which will consume time and attention.
“There are provisions in that bill important to credit unions, and we hope the shutdown fight doesn’t derail the process of the Senate passing its version, going to conference with the House, and producing the best possible legislation,” Stverak said.
Mesack agreed that work on other priorities, like the NDAA, have slowed to almost a standstill.
“It’s uncertain whether the Senate will be able to hold a final vote,” Mesack said. “That wouldn’t be unusual. In past years the bill has been marked up, amendments filed, and then negotiated with the House to reach a compromise. There’s still a path forward for the NDAA, but the timing is unclear.”
As CUToday.info has reported, the fallout from a shutdown could be more severe this time if the Trump Administration proceeds with a reduction-in-force. The White House budget office has ordered agencies to draft plans for permanently cutting staff in programs not legally required to operate during a funding lapse.