Bill Seeks to Protect Federal Workers’ Credit Ratings During Government Shutdowns

Lawmakers have introduced legislation that would protect federal workers’ credit histories during government shutdowns.

Sen. Mark Kelly and a handful of his Democratic colleagues recently introduced the Federal Worker Credit Protection Act of 2026. The measure would “prevent harm to credit ratings because of missed or delayed payments when federal workers aren’t getting paychecks, helping ensure federal workers are not financially penalized for circumstances beyond their control,” according to a statement from Kelly’s office.

The same statement outlined the legislation’s objectives, including:

• Prohibiting consumer reporting agencies from reporting adverse information on the credit report of federal workers during a government shutdown and for 30 days after the end of a shutdown as workers’ pay is restored;
• Requiring the Office of Management and Budget (OMB) to notify consumer reporting agencies when federal agencies enter and exit shutdown status
• Allowing federal workers to correct adverse information already on their credit report.

“Our dedicated federal employees provide essential services for the American people, and they should not suffer during government shutdowns that are entirely beyond their control,” said Sen. Chris Van Hollen, in a statement.

“This legislation ensures that the risk of credit damage isn’t an added burden on these civil servants while they are going without pay and helps them get back on their feet when shutdowns end.”

Unions representing federal workers applauded the bill’s introduction.

In a statement, Randy Erwin, national president of the National Federation of Federal Employees, described the legislation as “a commonsense step to protect workers from lasting financial damage” in the event of a government shutdown.

American Federal of Government Employees (AFGE) National President Everett Kelley urged “swift Congressional passage” of the Federal Worker Credit Protection Act, calling it “a much-needed bill to temporarily protect the credit ratings of federal employees during government shutdowns.”

“The sad reality is that all-too-frequent agency funding lapses can permanently harm federal workers, long after the government eventually reopens,” Kelley said in a statement.

“Simply giving people backpay, as current law requires, does nothing to undo the undeserved damage to their credit ratings, their good name and their dignity. Senator Kelly’s bill hits pause on negative credit information during periods when feds are still working hard for the American people while drawing zero-dollar paychecks.”