The federal government is now in its third week of a shutdown, with no clear resolution in sight. The House has been in recess since September 19. Speaker Mike Johnson has stated that the House will not reconvene until the Senate passes a “clean” funding measure.
The shutdown has led to significant disruptions across federal agencies. Approximately 900,000 federal workers 
have been furloughed, and another 700,000 are working without pay. In response to concerns over military personnel potentially missing their paychecks, President Trump recently directed the Department of Defense to utilize approximately $8 billion in unobligated research and development funds to ensure service members are paid on October 15.
Additionally, large-scale layoffs, also known as reductions in force (RIFs), have impacted on the CDFI Fund as the Treasury Department announced on Friday plans to eliminate all staff. Notices have already begun going out and layoffs are expected to take effect on December 15. It’s a move that puts the future of the agency in question pending Congressional and Judicial action.
Credit unions account for the largest group of certified CDFIs with 444 of 1,375 as of August 12. Previously, the Nebraska Credit Union League (NCUL) communicated with members of the Nebraska Congressional delegation noting that Credit Unions utilize the Community Development Financial Institutions (CDFI) Fund to expand access to capital and technical assistance in underserved areas like rural Nebraska. NCUL continues to engage with America’s Credit Unions to ascertain the best strategy to address the situation.
More broadly, Credit Unions across Nebraska are responding to their communities’ needs and several news stories have featured Nebraska credit unions efforts “Throughout Nebraska, credit union members can count on their local credit unions to find the help they need to weather financial challenges connected to the government shutdown, including the added risk of permanent job losses,” said Brandon Luetkenhaus, President of the Nebraska Credit Union League “As people-first financial cooperatives, credit unions do all they can to work with Nebraskans to find short and long-term solutions that help them maintain financial stability during the shutdown.”
All credit unions that have any programs or unique stories of service are encouraged to complete the survey hosted by America’s Credit Unions, so we can broadly highlight the great work and significant impact of credit unions. It is a vital part of advocacy that we share these stories to ensure that lawmakers fully understand how credit unions are serving people and communities in this time of crisis. Here is the direct link to the survey.
