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S2995119th CongressWALLET

Shutdown Guidance for Financial Institutions Act

Sponsored By: Senator Van Hollen, Chris [D-MD]

Introduced

Summary

Guidance for banks to shield people during federal shutdowns. This bill would define who counts as a consumer or business affected by a shutdown and require federal financial regulators to issue joint guidance on lender practices within set deadlines.

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  • Workers and families: Federal employees who are furloughed or exempted would be explicitly named as consumers affected, so lenders would be encouraged to recognize lost pay and temporary hardship.
  • Contractors and small businesses: Federal contractors and businesses that suffer a substantial drop in income would be counted as affected consumers and businesses, drawing lender attention to revenue shortfalls.
  • Banks and credit reporters: Regulators would urge banks and credit unions to consider loan modifications or new credit consistent with safe lending and to prevent modified arrangements from being reported in ways that hurt borrowers.
  • Regulator deadlines for initial action: Regulators must issue the guidance within 180 days of enactment and publish a press release within 24 hours after a shutdown begins.
  • Reporting and updates: Regulators must report to Congress on guidance effectiveness within 90 days after a shutdown ends and update the guidance within 180 days if shortcomings are found.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Who counts as affected by shutdown

If enacted, the bill would define who is an "affected consumer" and which businesses count as affected. You would be an affected consumer if you are a Federal employee furloughed or excepted from furlough, a District of Columbia employee not paid because of a shutdown, or an employee whose pay fell substantially because of the shutdown. A business would count if it is a Federal contractor (per 41 U.S.C. 7101) or had a substantial income drop due to the shutdown. These definitions would take effect when the bill becomes law.

Financial guidance during government shutdowns

If enacted, the bill would require the main Federal financial regulators to issue joint shutdown guidance within 180 days of enactment encouraging banks and lenders to help affected consumers and businesses. The guidance would ask institutions to recognize lost access to credit, consider prudent loan modifications or new credit consistent with safe lending, and avoid reporting helpful loan changes in ways that hurt credit scores. The regulators would also have to issue a joint press release within 24 hours after a shutdown starts, deliver a report to Congress within 90 days after a shutdown ends on how the guidance worked, and update the guidance within 180 days after that report if problems are found.

Sponsors & CoSponsors

Sponsor

Van Hollen, Chris [D-MD]

MD • D

Cosponsors

  • Sen. Alsobrooks, Angela D. [D-MD]

    MD • D

    Sponsored 10/9/2025

  • Sen. Kaine, Tim [D-VA]

    VA • D

    Sponsored 10/9/2025

  • Sen. Warner, Mark R. [D-VA]

    VA • D

    Sponsored 10/9/2025

  • Sen. Gillibrand, Kirsten E. [D-NY]

    NY • D

    Sponsored 10/9/2025

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 10/9/2025

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 10/9/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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