Southland News

U.S. government shutdown questions and answers

To avoid a government shutdown, the Senate and the House of Representatives must pass a continuing resolution to keep the government funded. This measure must be passed and signed by President Biden by September 30, 2023. 

What is the impact of a government shutdown?

If a government shutdown takes place, some federal employees will go unpaid, and therefore some credit union Members may not receive paychecks. It also means that the beneficiaries of social programs experience interrupted services. 

I'm a federal employee. How will my paycheck be affected?

During past government shutdowns, some federal employees were furloughed and their paychecks were delayed as a result. Furloughed employees did receive backpay. Approximately 65 percent of federal employees will continue to work during a government shutdown because they provide a service deemed to be "essential" by the federal government, exempting them from being furloughed. 

How does a government shutdown affect my credit union accounts?

The National Credit Union Administration (NCUA) will continue to insure deposits up to $250,000. The Federal Reserve will remain open, and the Consumer Financial Protection Bureau (CFPB) will continue to operate. 

How will government services be affected during a shutdown?

During a government shutdown, certain social programs may be affected.

Social Security: Social security checks will be mailed out and payments will continue. However, 15 percent of the agency may be furloughed, slowing down some services such as benefit verifications.  

Medicaid/Medicare: Medical benefits offered through these programs should not be impacted and payments will continue to be made to medical professionals. However, the department that oversees this program, Health and Human Services, is expected to furlough 42 percent of staff. This may slow access to other programs, such as grant programs.

Veterans Affairs Benefits: Disability compensation, pensions, education, housing assistance, burials at veterans’ cemeteries and medical care at medical facilities would continue. However, some local veteran affairs offices may close.

U.S. Post Office: The Post Office will continue to operate with uninterrupted services.

Air Travel: Transportation Security Administration (TSA) agents at airports will continue to work, but may go without pay. The same is true for air traffic controllers. Expect longer lines at the airport during a government shutdown.

Supplemental Nutrition Assistance Program (SNAP)/Food Stamps: A letter from the A Department of Health and Human Services, SNAP/CalFresh/food stamp benefits will continue without disruption through October.

Federal Student Loans: Student loan payments are scheduled to resume during the government shutdown on Oct. 1. Students must repay loans. Federal programs that make payments, such as Pell Grants and Federal Direct Student Loans, would continue for a limited amount of time, but may experience disruption depending on the length of the government shutdown.

Department of Labor: Most employees would be furloughed, which may delay labor disputes with auto workers. This may also impact employees that produce reports for the Bureau of Labor Statistics, which may be delayed during a shutdown (auto workers and majority furlough).

National Flood Insurance: This agency will not have authority to process loans during the shutdown (from the Credit Union National Association).  

U.S. Small Business Administration: It is unlikely that the SBA will be able to process loans during a government shutdown (from the Credit Union National Association).

Internal Revenue Service: Those who were granted a six-month extension will still need to pay on time, even if the government is shut down.

What is Southland Credit Union doing for Members affected by the government shutdown?

Southland is assessing all options for how best to serve our Members who are affected by the shutdown. We will update this page with more information as it becomes available.

If you are concerned about your loan payments, you can contact us about loan deferment assistance or mortgage payment assistance. 

 To speak with a representative regarding your accounts, please contact us.