Beyond fee waivers: How Keesler Federal redefined shutdown relief

When the federal government shut down, credit unions across the nation mobilized to help members weather the crisis. According to America's Credit Unions' Government Shutdown survey, 57% of responding credit unions waived fees or penalties to reduce member strain. But Mississippi's largest credit union took a fundamentally different approach that went beyond fee relief. Keesler Federal Credit Union created an entirely new program that eliminated the need for loans altogether.

Streamlining assistance when it matters

Rather than offering loans to federal employees affected by the shutdown, Keesler Federal gave them something else: automatic paycheck advances with zero strings attached. While credit unions nationwide launched relief loan programs to help the estimated 750,000 furloughed federal workers, Keesler Federal's Paycheck Relief program leaned into true innovation in times of crisis.

"We're just advancing them the money," said T. Bradley Keith, director of public relations and communications for Keesler Federal, during the shutdown. “There are no fees, no interest, and no cost whatsoever. With Paycheck Relief, they never missed a beat.”

From the start of the shutdown on October 1 through its resolution, Keesler Federal advanced more than 5,000 paychecks totaling $6.5 million to its 1,710 enrolled members who were federal employees.

The credit union difference on display

The distinction between Keesler Federal's Paycheck Relief program and other shutdown assistance illuminated a fundamental difference. "This is a moment for credit unions, because banks just can't do that," Keith explained during an interview. “We are actually advancing them the money – not loaning it.”

Most financial institutions responding to the shutdown offered zero-interest or low-interest loans that still required applications, credit checks, and repayment plans. Keesler Federal's approach eliminated the bureaucratic burden entirely. Members who already had direct deposit from federal agencies simply continued receiving their paychecks as scheduled, in the form of advances from the credit union. Keith said Keesler would recoup the advanced funds when federal back pay arrived.

For non-members, Keesler Federal also offered a zero-interest loan of up to $6,500 with 12 months to repay, an option that served those unable to access the automatic paycheck advance program. The credit union has approximately 18,000 federal employees in its membership base.

Beyond paychecks: Addressing the hunger crisis

The shutdown's impact extended far beyond missed paychecks. With approximately 42 million Americans relying on SNAP benefits and the program's November distribution disrupted by the shutdown, food insecurity reached crisis levels. Keesler Federal responded by doubling its annual food bank support from $50,000 to more than $100,000.

On October 31, the credit union partnered with Feeding the Gulf Coast for a massive food distribution event in Gulfport, Mississippi, that Keith described as both "uplifting and heartbreaking." Two 18-wheelers arrived at 6 a.m., carrying food that took five hours to unload and sort into family boxes before the distribution began at 11 a.m. Each family received between $75 and $100 worth of groceries, including fresh produce, meats, and essential items.

"We had a line of vehicles that went on for over three miles," Keith recalled. "Hundreds of people. These people waited four or five hours, and when I tell you about the need…the level of need is unbelievable."

The distribution served approximately 1,900 to 2,000 people, representing 400 to 500 families. Among them was a man who approached Keith with visible discomfort. "I could tell he was very proud," Keith said. "He said, 'I've never done this before.' He seemed almost ashamed. I said, 'Well, there's absolutely nothing wrong with lending a helping hand to a neighbor or accepting help.'"

The man explained he had always been the one helping others. "I just want you to know that I've never had to accept anything, but we really don't have a way to make ends meet right now," he told Keith.

The ripple effect of peace of mind

Beyond the immediate financial relief, Keith emphasized the program's most valuable benefit: eliminating stress. "I've been there when I missed a paycheck before," he said, noting his previous 18 years in federal government service, including work as state director for a three-term senator who experienced two previous shutdowns. "You talk about the stress it creates. Just to be able to give people peace of mind, that's one of the greatest benefits of the program."

Keesler Federal employees volunteered at the food distribution alongside other community groups, embodying the credit union's mission of building stronger communities. The credit union also supports the Mississippi Food Network in Jackson, Second Harvest in New Orleans, and the Northshore Food Pantry in Covington, Louisiana.

A model for the industry

"The credit union mission is a noble one, and it's about helping members and building communities," Keith said. "Credit unions are taking the lead to innovate the way we tried to with the paycheck relief."

Credit unions' member-owned structure enables them to prioritize people over profits. Following Keesler Federal's lead, credit unions can leverage their unique structure to meet members where they are during crises.

For credit union leaders facing future crises, Keith's message is clear: "We meet people where they are and address their immediate needs." In a financial landscape increasingly dominated by large banks, that's the credit union difference in action.

America's Credit Unions' Government Shutdown Assistance webpage consolidates the outreach efforts during the most recent shutdown, survey results, and stories of impact.