The National Credit Union Administration (NCUA) announced it will remain operational and continue to insure individual credit union accounts during the ongoing federal government shutdown.
According to the NCUA, “The NCUA is an independent agency of the federal government, and its operating budget comes from fees charged to federal credit unions and transfers from the National Credit Union Share Insurance Fund. Credit union members’ accounts will continue to be insured by the Share Insurance Fund.”
The agency noted that while it is not funded through congressional appropriations, some credit unions could experience disruptions, especially those serving a high number of federal employees. The NCUA advised credit unions to prepare for potential impacts, including ensuring policies allow flexibility for members' financial needs and preparing for possible service interruptions at offices located on federal property.
Other recommended actions include working prudently with affected members—such as providing advances to those who receive direct deposits from the federal government—and developing contingency plans regarding participation in government programs impacted by the shutdown. The NCUA also encouraged timely communication of response plans to members, staff, and volunteers.
“Consistent with safety and soundness, credit unions may want to consider offering special programs to assist impacted members who need short-term loans, create loans with special terms and rates, or offer payment flexibility,” according to the agency.
Credit unions are urged to review guidance outlined in NCUA’s Letter to Credit Unions 11-CU-05: “Planning and Preparedness for a Potential Government Shutdown.”
The NCUA was established by Congress as an independent federal agency responsible for regulating, chartering, and supervising federal credit unions. It manages the National Credit Union Share Insurance Fund, which insures deposits for more than 143 million account holders in all federal credit unions as well as most state-chartered credit unions.
For further information or media inquiries, contact OEACmail@ncua.gov or call 703.518.6330.