Lawmakers Fail to Reach Funding Agreement, Triggering Shutdown

October 1, 2025 |

By the time the clock struck midnight on October 1, lawmakers still had not reached a federal funding agreement, forcing the government into shutdown. The impact is already being felt: as many as 4 million federal employees—including service members—face uncertainty. Hundreds of thousands of “essential” workers will continue on the job without pay, and the duration of this disruption is unknown. For context, the last shutdown in 2018–2019 lasted 35 days, creating real strain for families and communities nationwide.

As members and their families begin to feel the effects, credit unions can play a vital role in offering support.

Key Considerations for Credit Unions

  • National Credit Union Administration (NCUA) and the Share Insurance Fund: NCUA remains open. The Share Insurance Fund is unaffected, and member deposits remain fully insured. Read NCUA’s statement here. 
  • Branches on Federal Property: NCUA advises planning for service interruptions if your branch is located on federal property. 
  • Flood Insurance: The Federal Emergency Management Agency (FEMA) cannot issue new National Flood Insurance Program policies during the lapse, though valid claims will be paid. Loans may close without coverage only if NCUA Part 760 requirements are met and systems are in place to obtain coverage once funding resumes. 
  • Small Business Administration (SBA) and Federal Housing Administration (FHA): Loan requests and originations may face delays. The Maine District Office of the SBA is closed. Staff will be unable to access voicemail or email until funding is restored. 
  • Supplemental Nutrition Assistance Program (SNAP): Short-term benefits should continue, but prolonged disruption could affect funding. In addition, Women, Infants, and Children (WIC), a signature nutrition program that serves 6.5 million low-income moms and babies, could run out of funding within days. Food pantries will likely see increased demand. 
  • Credit Union Responses: Nationally, credit unions are deploying member support such as 0% loans, Skip-a-Pay programs, and fee waivers. 
  • In addition: Our partners at America’s Credit Unions have added a Government Shutdown page with additional information and assets. 

Maine’s Loan Guarantee Program 

The Legislature enacted LD 874, the Government Shutdown Loan Guarantee Program, earlier this year. Credit unions that choose to participate can provide loans to impacted federal employees. The program also is designed to provide support in the event of a state government closure.

  • The state guarantees 10% of aggregate program loans across all lenders. 
  • Credit unions must apply to the Maine Bureau of Financial Institutions and use required program forms (borrower affidavit, documentation checklist, and disclosures). 
  • Visit the League’s Loan Program Resource Page for full details.

Showcasing the Credit Union Difference 

Credit unions are known for stepping up during times of need. If your credit union is participating in the new Maine loan program, offering special loan terms or Skip-a-Payments, and/or supporting local food pantries, please share updates with Ethan Barber, League Manager of Governmental Affairs, at ebarber@mainecul.org. Highlighting how we live our People Helping People mission during times like this strengthens our advocacy efforts. 
 
The League is closely monitoring developments and will share information as the situation evolves. In the meantime, please don’t hesitate to reach out to our team—we are here to support you in your outreach and response to members.