Federal Workers and Contractors Protected from Foreclosures, Evictions, and Loan Defaults during Government Shutdown

Strategic Insights -

Senator Kirsten Gillibrand, alongside 17 Senate Democratic colleagues, introduced the Federal Employee Civil Relief Act to safeguard federal workers, federal contractor employees, and their families from financial hardships during government shutdowns. The legislation would prevent foreclosures, evictions, and loan defaults, providing a safety net for impacted workers to keep up with their bills. The government shutdown, now in its second week, affects thousands of federal workers and federal contractor employees in all 50 states.

Key Takeaways:

  • The Federal Employee Civil Relief Act aims to protect federal workers and contractors from financial distress during government shutdowns, including foreclosures, evictions, and loan defaults.
  • The legislation would ensure impacted workers can pay their bills, keep their health insurance, and maintain their credit history.
  • The protection would last for 30 days following a shutdown to give workers time to recover.
  • The bill has gained support from several labor unions, including the American Federation of Government Employees (AFGE) and the National Treasury Employees Union.
  • Companion legislation in the House of Representatives is set to be introduced by U.S. Representative Brendan Boyle (D-PA).
  • California, with one of the largest federal workforces, is particularly affected by the shutdown, highlighting the need for the legislation.
  • Senators Chuck Schumer (D-NY), Dick Durbin (D-IL), Alex Padilla (D-CA), and others have cosponsored the bill in the Senate.

Statistics:

  • 17 Senate Democratic colleagues have cosponsored the bill, including Leader Chuck Schumer (D-NY).
  • The government shutdown affects thousands of federal workers and federal contractor employees in all 50 states.
  • The legislation aims to protect impacted workers from:

+ Being evicted or foreclosed ( protected from foreclosure or eviction, protected from repossessed assets, speedy payment plan).

+ Having their car or other property repossessed (protected from repossession of assets).

+ Falling behind on their student loan payments ( protected from missed payments).

+ Having negative effects on their credit history (protected from credit scoring).

+ Falling behind on paying their bills (protected from abusive collection practices).

+ Losing their insurance because of missed premiums (protected from loss of coverage).

  • The protection would last for 30 days following a shutdown.

Sources:

  • "Democrats push bill to protect federal workers from home and loan defaults during shutdown" by Everett Kelley, President of AFGE.
  • "Federal Employee Civil Relief Act" by Senate Democrats.
  • "U.S. Senate Democrats push legislation to prevent federal workers from facing foreclosures and evictions" by 2022 Al Bawaba (Albawaba.com).