Maryland credit union approves $2.4 million for federal employees
FedChoice Federal Credit Union has approved more than $2.4 million in loans for federal employees impacted by the historic government shutdown, with furlough-specific lending reaching $1.4 million as the crisis extends into its seventh week.
The Lanham, Maryland-based institution, which serves more than 25,000 members and manages $447 million in assets, has processed assistance for hundreds of federal workers since the shutdown began October 1, 2025. Between October 1 and November 5, FedChoice welcomed 408 new members seeking financial support and allowed 343 members to skip consumer loan payments, preserving nearly $150,000 in immediate cash flow for affected households.
"We're seeing more demand today than there was then," said Christine Wright, vice president of marketing at FedChoice, comparing current application volumes to the 2018-2019 shutdown. During the previous 35-day crisis, FedChoice averaged 28.5 furlough loan applications daily. The current shutdown has generated an average of 34.9 applications per day through its first 36 days.
Comprehensive support beyond lending
FedChoice's response extends well beyond traditional financial products. The credit union hosted a food truck event at its headquarters in early November, providing free meals to federal employees while connecting them with mental health specialists and certified financial planners.
"One of the members came through and it's somebody that we have known for a long time," Wright recalled. "He was like, 'Look, I'm trying to figure out, do I need to go to food banks? I'm worried about the gas in my car.' And he just started hugging people and thanking us."
The credit union's Federal Choice Charitable Foundation partnered with the Foundation for Financial Planning to offer free counseling sessions, addressing concerns that reach far beyond immediate cash needs. Wright noted that federal employees are grappling with unprecedented uncertainty about back pay, a guarantee that existed during the 2018-2019 shutdown but remains unclear under current circumstances.
Planning that predates the crisis
FedChoice began preparing for government shutdown scenarios in 2018, which has evolved into what it calls the "FedAssist" package specifically for disasters and appropriations lapses. The institution maintains a dedicated shutdown center on its website and ensures staff readiness whenever budget negotiations stall in Congress.
"We know that a shutdown impacts their finances, their family. It's this huge disruptor in their lives," Wright said. "Ever since 2018, FedChoice has kept up with what this looks like, how this impacts our members."
The credit union's membership base, which began as IR Federal Credit Union serving Internal Revenue Service employees, now operates under a multiple common bond charter focused primarily on federal workers.
Concerns as shutdown continues
As the longest government shutdown in U.S. history stretches past five weeks, FedChoice faces the same liquidity challenges confronting financial institutions nationwide. In a statement to Federal News Network, FedChoice President and CEO Brett Noll acknowledged the fundamental constraint: "The main challenge we will face is the fact that every financial institution has limited liquidity. When federal employees are not paid, our assets decline and so does the amount of funds we have available to lend."
Noll emphasized that FedChoice maintains borrowing mechanisms to sustain operations, though those resources have limits. "FedChoice will continue to manage the situation and do the very best we can to help federal employees in need," he said.
The credit union is processing diverse assistance requests beyond furlough loans, including instant access loans, lines of credit, and vehicle refinancing to create breathing room for payment schedules. Wright noted that examining the full scope of shutdown-related lending revealed impact across multiple product lines.
Relationships that make all the difference
Wright goes on to describe the personal connections that distinguish credit union service during crisis moments. After learning that a longtime member had signed up for the food truck event, a staff member personally greeted him by name. The member was astonished that someone knew he was coming.
"It's the ‘people helping people’ because this is a true connection with someone," Wright explained. "It's not a numbers game. We know our members."
For federal workers facing their second missed paycheck, that relationship-based approach offers stability amid chaos. The current shutdown, has furloughed at least 670,000 federal employees and left another 2 million working without pay as partisan disputes over Affordable Care Act subsidies block resolution.
Rather than maximizing profit, FedChoice is mobilizing resources when their communities face unprecedented disruption. As negotiations continue in Congress with no clear end date, credit unions across the country remain focused on meeting members where they are, one relationship at a time.
America's Credit Unions has a Government Shutdown Assistance webpage with resources and will continue to engage with Congress on getting funding restored. MD|DC Credit Union Association also has a list of credit unions and the specific relief programs they are offering across the Maryland, Delaware and the Washington, D.C. metropolitan area.
