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Federal Workers Turn to Zero-Interest Loans as Shutdown Persists
1 Nov
Summary
- Federal employees rely on no-interest loans from banks
- Shutdown leaves families facing medical bills and other costs
- Over $365 million in special loans issued by USAA since shutdown
The prolonged government shutdown has left many federal employees in a financial crunch, forcing them to seek assistance from banks offering zero-interest loans. As of November 2, 2025, the shutdown has been ongoing for 30 days, with no resolution in sight.
One San Antonio woman, whose husband works for the Department of Defense, recently took out a $3,200 loan from the United Services Automobile Association (USAA) to help her family pay the bills. She explained that her family would have been "in trouble" without the financial support, as they are also dealing with medical bills from a spinal fusion surgery for one of their five children earlier this year.
Since the shutdown began on October 1, 2025, USAA has issued over $365 million in special loans to more than 119,000 federal employees affected by the crisis. These zero-interest, zero-fee loans are designed to help workers meet their essential needs during the ongoing impasse in Congress.
Other lenders, such as Navy Federal Credit Union, have also stepped in to provide financial assistance. The credit union's "Paycheck Assistance Program" offers no-interest loans to members in the amount of their regular deposits, up to $6,000. During the previous government shutdown in 2018-2019, Navy Federal issued a total of $53 million in loans to 32,000 recipients.
As the financial fallout from the shutdown continues to escalate, federal employees and their families are being forced to make difficult choices and seek alternative sources of support to make ends meet.
