New Bill Would Help Federal Employees Avoid Credit Hits During Shutdowns

A group of Senate Democrats introduced new legislation aimed at shielding federal employees from negative impacts to their credit scores during a government shutdown.

Democrats in the Senate introduced the 2026 Federal Worker Credit Protection Act (S. 4478). It would bar credit reporting agencies such as Experian, Equifax, and TransUnion from marking down a federal employee’s credit score during a shutdown and for 30 days after a shutdown’s end.

If enacted, it would apply retroactively to February 1, 2026, allowing workers at the Department of Homeland Security (DHS) to potentially erase any negative credit impacts from the record-long 76-day shutdown that ended on April 30, 2026.

“Earlier this month, I met with Phoenix TSA officers working without pay. They shared how the financial strain they were dealing with—including missing payments—hurt their credit scores. That kind of damage can follow you for years,” said Senator Mark Kelly (D-AZ), one of the co-sponsors.

In addition, the bill would require the Office of Management and Budget (OMB) to notify consumer reporting agencies when federal agencies enter and exit shutdown status.

It would also provide an avenue for federal employees to correct adverse information already on their credit report free of charge.

The legislation quickly found support from labor unions, including the American Federation of Government Employees (AFGE) and the National Federation of Federal Employees (NFFE).

“Falling behind on bills because their paycheck stopped shouldn’t hurt their credit standings, sometimes for years after a shutdown ends,” said NFFE President Randy Irwin.

The legislation is currently pending before the Senate Committee on Banking, Housing, and Urban Affairs.