On the heels of Congress ending the longest government shutdown in U.S. history – a 76-day funding stalemate at the Department of Homeland Security – a group of lawmakers have introduced legislation that would protect federal workers’ credit histories during any future shutdown.
The Federal Worker Credit Protection Act of 2026 would prevent harm to credit ratings because of missed or delayed payments when federal workers aren’t getting paychecks, helping ensure federal workers are not financially penalized for circumstances beyond their control.
The legislation was introduced May 1 by Sens. Mark Kelly and Ruben Gallego from Arizona, Angela Alsobrooks and Chris Van Hollen from Maryland, and Tim Kaine and Mark Warner from Virginia.
“Federal workers shouldn’t be punished by a government shutdown that isn’t their fault,” said Sen. Kelly, who spearheaded the legislation. “Earlier this month, I met with Phoenix TSA officers working without pay. They shared how the financial strain they were dealing with—including missed 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.”
AFGE President Everett Kelley said this is a much-needed bill to temporarily protect the credit ratings of federal employees during government shutdowns.
“The sad reality is that all-too-frequent agency funding lapses can permanently harm federal workers, long after the government eventually reopens. 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,” President Kelley said.
“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. We urge swift Congressional passage of the bill.”
For a record 76 days, tens of thousands of Homeland Security employes at the Transportation Security Administration, Federal Emergency Management Agency, Border Patrol, Coast Guard, and many other DHS agencies were forced to work without pay due to the budget stalemate in Washington.
“We have been showing up to work since November without a paycheck, then only partial checks and it has taken a real toll,” said AFGE Local 1260 member Pascual Contreras, a TSA officer at Phoenix Sky Harbor International Airport. “I am three months behind on rent, and my credit score has dropped by more than 200 points. That has put our plans to buy a home out of reach. It’s not fair that something out of our control can impact our financial future like this. I’m grateful to Senator Kelly for listening and working on a solution.”
Going weeks and even months without a paycheck can put federal workers at risk of missing payments on mortgages, car loans, student loans, credit cards, and more. Even a single missed payment can significantly lower a consumer’s credit score, leading to higher interest rates, reduced access to credit, and long-term financial strain.
The Federal Worker Credit Protection Act of 2026 would allow federal workers who have been without pay during a shutdown to protect their credit. Specifically, the bill would:
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