Navy Federal’s No-Cost Payroll Assistance Program Offers Hope During Shutdowns

By Allison Stevens

When the government shut down last fall, Denys La Rosa, a retired sergeant first class as well as a civilian employee with the U.S. Army, faced a difficult choice. A single father of two, his monthly retirement check wasn’t enough to cover the mortgage and other expenses, so he lined up a temporary job as a substitute teacher to make it work. 

Then, Denys learned that Navy Federal was offering no-cost financial assistance for members affected by the shutdown. He applied immediately. The program meant Denys didn’t miss a mortgage payment and that he could focus on supporting his daughters—one in college, one in high school—without facing financial uncertainty.

The program “helped a lot,” he said. “If it weren’t available, it would have meant a lot of stress for me.”

Denys wasn’t alone; Navy Federal disbursed nearly 200,000 offers of assistance at no cost this fall, totaling over $350 million, and offered the program again during this winter's partial government shutdowns. Unlike programs offered by other institutions, no credit check was required, so there was no impact on members’ credit history. Navy Federal also worked with members to help manage more than $2.5 billion in loan balances, supporting financial health for those who serve our nation.

The programs continued Navy Federal’s tradition of stepping up when the government shuts down. The credit union offered similar programs in 2011, 2013 and 2018-19, when nearly 20,000 members received support.

 “We understand how unsettling a potential government shutdown can be for our members and their families,” said Matt Freeman, Navy Federal’s senior vice president of digital payments. "In these challenging times, it's important our members know we are here to provide dependable support when they need it most."

A financial safeguard

For Tonya Nixon, a military spouse in Washington state, the program safeguarded her family’s financial security. “We were so scared,” said Tonya, a military spouse whose husband now works for the U.S. Department of Defense. “We didn’t know what we were going to do.”

Without the program, Tonya and her husband would have faced the prospect of calling creditors to ask for relief on car and home loans, risking late payments and damage to their credit rating, or asking relatives to borrow money. “It was so nice not to have to think about that, to not have to make that phone call,” she said. 

The application process, she added, was simple and stress-free. “We would definitely participate in the program again,” Tonya said. “I feel very protected. I’m so happy about the program.”

Cassandra Clouse, a U.S. Army Veteran and civilian engineer at the Air Force Research Laboratory in Ohio, echoed the sentiment. When she first learned about the program last spring, she moved all her accounts to Navy Federal to ensure she’d be eligible and has encouraged friends and colleagues to do the same, not only because of the credit union’s shutdown assistance but also because of its products and excellent customer service.

The promise of assistance “takes away a little bit of the fear, for sure,” Clouse said. “It’s a big deal.”

Another member, who asked not to be identified, agreed. He recalled breaking down in tears at a local branch when he learned he qualified for the program. The program not only helped him pay his bills but also supported his mental health. “I was so relieved,” he said, noting the shutdown had exacerbated depression and anxiety symptoms he’d been experiencing in the wake of mass firings of federal workers.

Navy Federal’s shutdown program is designed for military Servicemembers, federal employees and government contractors who are paid directly by the federal government through appropriated funds that have lapsed, have their paychecks deposited with Navy Federal and experience a disruption in income due to a shutdown.

“Whether it’s a reassuring conversation at a branch, a timely text message or a seamless online application, Navy Federal’s mission is clear: to serve those who serve our nation, in good times and in challenging ones,” Freeman said. “Navy Federal is more than a financial institution. It’s a partner, an advocate and a community that stands strong together.”

learn more about Navy Federal’s government shutdown assistance program.