When the paychecks stop, credit unions keep communities moving

When the federal government shutdown halts paychecks, its effects reach far beyond Washington. For thousands of families, a missed paycheck can mean missed mortgage payments, rising stress, and tough choices about groceries, utilities, or childcare. But the financial harm doesn’t stop there. When paychecks pause, entire communities feel the strain, from landlords to local business owners waiting for bills to be paid.

As the federal government shutdown stretches on, America’s First Federal Credit Union (AmFirst) is stepping in to support those impacted in their community by offering low-interest loans and personal outreach to help members stay on track while keeping local economies moving.

For Kevin Morris, president and CEO of AmFirst, that’s exactly why credit unions exist. “We believe it’s our responsibility to support our members, especially in times of uncertainty,” Morris said. “Many members in our communities depend on each paycheck to meet their essential needs. We estimate that the current shutdown impacts several thousand of our members. By stepping up, we’re helping families avoid missed payments, maintain stability, and weather a difficult circumstance beyond their control.”

A lifeline for members and their communities

To meet the moment, the Birmingham-based credit union launched its Here When You Need Us Most relief program. The relief loan offers members impacted by the shutdown a 1.75% APR loan for up to $5,000 or the member’s net monthly pay, whichever is less. The loan provides members with immediate cash flow to cover critical expenses.

“This lifeline helps members cover critical expenses like rent, groceries, and utility bills,” Morris explained. “When our members can meet their obligations, it provides peace of mind and ensures local businesses and service providers are paid, benefitting the entire community.”

The credit union has promoted the program through email, social media, and direct outreach to ensure every eligible member knows help is available. The response, Morris said, has been deeply personal.

“We’ve seen an outpouring of gratitude and relief from those who needed immediate support. Being there for our members when they need us most is at the heart of what it means to be a part of a credit union.”

Relief beyond the paycheck

The difference is already visible in members’ lives and in Alabama’s local economy. One longtime member, an employee of the Social Security Administration, reached out after learning her pay would be suspended even as she continued working as an essential employee.

“Understanding her challenges, we quickly approved a personal loan at 1.75% to help cover her bills, including her mortgage,” Patrick Wiginton, AmFirst’s Director of Lending Services, recalled. “She expressed deep gratitude and relief, emphasizing how vital the support was during this uncertain time.”

That single loan didn’t just keep her household afloat, it helped sustain the businesses and service providers she relies on. Across Alabama, those ripple effects multiply, helping communities stay financially stable while federal paychecks are frozen.

Unique challenges in Alabama

From military installations to federal agencies and contractors, shutdown impacts can be especially severe in Alabama where federal roles are tightly woven into the local economy. Rural areas, where access to financial resources is often limited, face even steeper hurdles.

“Even a temporary gap in income can have a major impact, especially in rural areas,” Wiginton said. “High utility costs, rising grocery prices, and underlying economic challenges make it even more crucial for us to be there for our members.”

AmFirst’s local insight allows it to tailor solutions that reflect those realities and provide personal attention and flexibility that larger institutions can’t always provide.

These efforts are part of a much broader story unfolding nationwide. According to preliminary data from America’s Credit Unions’ Government Shutdown Survey, credit unions across the country are mobilizing to help members bridge the financial gap. Of those who responded*:

• 90% are offering deferred payments on existing loans
• 78% have launched new or modified relief loan programs
• 68% are waiving fees or penalties to reduce member strain
• 66% are offering financial counseling or budget management support

And for those seeking local assistance, America’s Credit Unions has launched a state-by-state shutdown assistance webpage, allowing policymakers, members, and the public to easily find credit unions providing relief near them.

Building financial resilience for the future

While the Here When You Need Us Most loan addresses immediate needs, AmFirst’s long-term focus is on helping members build stronger financial habits and buffers against future uncertainty. The credit union offers free financial counseling, budgeting tools, and workshops on debt management and savings strategies, all designed to empower members long after the shutdown ends.

“Our team works one-on-one with members to build long-term financial health,” Morris said. “It’s not just about providing relief right now but ensuring they’re better prepared for whatever comes next.”

That focus on both immediate relief and lasting resilience reflects AmFirst’s heritage. Founded during the Great Depression, the credit union was created by a small group of employees who wanted to help their coworkers through hardship. This legacy continues to guide its actions nearly 90 years later.

There when you need them most

As the shutdown continues, AmFirst’s message to its members remains simple: you’re not alone.

“We want our members to know that AmFirst is always in their corner,” Morris said. “Our primary goal is to serve and support them, no matter the circumstances. We hope they see that their well-being matters to us and that we’re here for them, not just in good times, but especially when challenges arise.”
For the communities of Alabama, that support means more than financial stability. It means connection, compassion, and the reassurance that, even in times of national uncertainty, credit unions remain a steady source of hope and help.

America's Credit Unions has a Government Shutdown Assistance webpage with resources and will continue to engage with Congress on getting funding restored.

_{*Statistics from the America's Credit Unions' Government Shutdown Survey were updated on November 2, 2025.}