Kelly Introduces Bill to Protect Federal Workers’ Credit During Government Shutdowns

Senator Kelly and Senate Democrats have repeatedly voted to fund TSA workers

Read ABC 15 exclusive: Senator Mark Kelly introduces bill to protect federal workers' credit during government shutdowns

Today, Senators Mark Kelly (D-AZ), Angela Alsobrooks (D-MD), Ruben Gallego (D-AZ), Tim Kaine (D-VA), Chris Van Hollen (D-MD), and Mark Warner (D-VA) introduced legislation to protect federal workers' credit histories during a government shutdown. The Federal Worker Credit Protection Act of 2026 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.

"Federal workers shouldn't be punished by a government shutdown that isn't their fault," said Senator Kelly. "Earlier this month, I met with Phoenix TSA officers working without pay. They shared how the financial strain they were dealing with-including missed payments-hurt their credit scores. That kind of damage can follow you for years. I'm taking action to make sure the people who keep our country running aren't hurt by Washington's dysfunction."

"Our patriotic civil servants should not have to suffer during federal government shutdowns. House Republicans refused to advance a plan that would have ended the shutdown a month ago - insisting instead on holding the financial security of federal workers hostage. It's just common sense that we pass legislation protecting civil servants from evictions, foreclosure, loan defaults, and credit damage during these disastrous shutdowns. While this Administration keeps up its witch hunt of federal workers, I will keep fighting to protect the federal workers in my state and across the country," said Senator Alsobrooks.

"In the past six months, Republicans have forced two of the longest government shutdowns in history. At a time when Americans are already struggling with rising costs, federal workers shouldn't have to worry about their credit taking a hit because they're not getting paid," said Senator Gallego. "This bill protects hardworking public service workers from long-term financial damage during shutdowns they didn't cause."

"While I helped pass legislation to ensure hundreds of thousands of civil servants and military personnel receive backpay after the government reopens, I know it isn't the same as getting a paycheck on time when the mortgage and bills are due," said Senator Kaine. "This legislation helps protect federal workers' credit and ensure they aren't penalized for missed payments during a shutdown."

"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. 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," said Senator Van Hollen.

"Virginia's federal workers are the backbone of the services Americans depend on. Our public servants credit reports shouldn't be negatively affected because of a shutdown they did not cause. This legislation would help ease the pain of a government shutdown by giving federal employees time to catch up when the government reopens," said Senator Warner.

"AFGE is profoundly grateful to Sen. Mark Kelly for introducing the Federal Worker Credit Protection Act of 2026, 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. 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. We urge swift Congressional passage of the bill," said Dr. Everett Kelley, National President, American Federation of Government Employees, AFL-CIO (AFGE).

"Federal workers work hard to keep this country running and they're still being punished because of government shutdowns that aren't their fault. For them, falling behind on bills because their paycheck stopped shouldn't hurt their credit standings, sometimes for years after a shutdown ends. We appreciate Senator Kelly for listening to NFFE members and taking a commonsense step to protect workers from lasting financial damage, and we're proud to support it," said Randy Erwin, National President, National Federation of Federal Employees (NFFE-IAM).

"We have been showing up to work since November without a paycheck, then only partial checks and it has taken a real toll," said Pascual Contreras, a TSA officer at Phoenix Sky Harbor International Airport. "I am three months behind on rent, and my credit score has dropped by more than 200 points. That has put our plans to buy a home out of reach. It's not fair that something out of our control can impact our financial future like this. I'm grateful to Senator Kelly for listening and working on a solution."

Background:

A month after the Senate passed funding for the Transportation Security Administration (TSA), Coast Guard, Federal Emergency Management Agency (FEMA), and more components at the Department of Homeland Security (DHS), the House finally passed the same bill and ended the DHS shutdown.

For 76 days, thousands of federal workers missed paychecks, putting them at risk of missing payments on mortgages, car loans, student loans, credit cards, and more. Even a single missed payment can significantly lower a consumer's credit score, leading to higher interest rates, reduced access to credit, and long-term financial strain.

The Federal Worker Credit Protection Act of 2026 would allow federal workers who have been without pay during a shutdown to protect their credit. Specifically, the bill would:

• Prohibit 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;
• Require the Office of Management and Budget (OMB) to notify consumer reporting agencies when federal agencies enter and exit shutdown status;
• Allow federal workers to correct adverse information already on their credit report.

Click here to read the full text of the bill.