Reps. Jacobs, Elfreth, and Walkinshaw Introduce Bill to Shield Federal Workers from Bank Fees During Government Shutdown
On Day 38 of the federal government shutdown, Reps. Sara Jacobs (CA-51), Sarah Elfreth (MD-03), and James Walkinshaw (VA-11) introduced legislation to shield federal workers and service members from bank fees during a government shutdown. The Protect Military and Federal Employees from Unfair Bank Fees Act would prevent banks from charging late or overdraft fees on any federal worker’s or service member’s personal credit cards or accounts and prevent banks from charging late fees on any government credit card in a federal worker’s or service member’s name that will go unpaid by the government. At this point in the shutdown, millions of federal workers have now missed a paycheck and risk facing late or overdraft bank fees.
Rep. Sara Jacobs said: “It’s wrong that during a government shutdown, millions of our federal workers and service members are either furloughed or working without pay – and then if they miss a paycheck, they can face late fees or overdraft fees. The people who keep our country running and safe shouldn’t be further penalized through no fault of their own. That’s why I’m proud to introduce legislation with Congresswoman Elfreth and Congressman Walkinshaw to protect our federal workers and service members from unfair bank fees during a government shutdown. Together, we represent hundreds of thousands of federal workers and service members, and we will do everything we can to support them as we push to reopen the government.”
Rep. Sarah Elfreth said: “The Protect Military and Federal Employees from Unfair Bank Fees Act is a commonsense fix to protect thousands of military and government families during this shutdown who shouldn’t be punished because of the federal government’s inaction. These are hard-working, active-duty military and federal employees – many of whom are working without pay. The least we can do is protect their financial future by eliminating any late fees or overdraft fees on both their personal cards and government credit cards. I’m proud to work with my colleague on the Armed Services Committee, Congresswoman Jacobs, and colleague from the National Capital Region, Congressman Walkinshaw, to provide this much-needed security for our constituents.”
Rep. James Walkinshaw said: “In Virginia, 320,000 federal employees and 130,000 service members serve our nation with dedication. During this Republican shutdown, they’ve endured missed paychecks and unpaid bills. Struggling families are already seeing their financial strain worsen as late fees and overdraft charges accumulate, at no fault of their own. If the government can’t pay them on time, those who serve our country should be protected from additional financial penalties.”
The National Consumer Law Center said: “High overdraft and credit card late fees exploit families at any time of the year, but it is especially important to protect our government workers when a shutdown takes away their income through no fault of their own.”
The Military and Federal Employee Credit Preservation Act would:
- Prohibit financial institutions from charging any fee on any account held by a federal employee or service member during a government shutdown
- This includes government travel cards in a federal worker’s or service member’s name that will go unpaid by the government
The legislation is endorsed by the National Consumer Law Center on behalf of its low-income consumers.
###