Updates available on militarymoneymanual.com/shutdown

• Air Force Aid Society – Falcon Loans up to $1,500 and Standard Assistance, up to 24 months of repayment. Space Force also eligible.
• Navy-Marine Corps Relief Society – Quick Assist Loan and Financial Assistance available
• Army Emergency Relief – Normally assistance available same day but no later than 48 hours. AER will provide rapid, zero-interest loans to help cover financial needs until normal operations and back pay resume. Assistance is available up to the amount of one net paycheck (maximum $6,000), with repayment beginning once pay is restored. If you or someone you know may be affected, please share this information. More information here.
• Coast Guard Mutual Assistance – Quick Loan program up to $1,000, Shutdown Loan up to 1 month's BAH per month
• USAA Government Shutdown Program 0% loan, credit check required, up to $6,000
• Navy Federal Government Shutdown Assistance, Paycheck Assistance Program 0%, no credit check required, up to $6,000
• PenFed
• Service Credit Union

Spencer Reese delivers a timely solo episode addressing the 2025 federal government shutdown and its impact on military families.

Recorded on October 8th, just days into the shutdown, this episode provides practical, actionable guidance on navigating the financial challenges of missed paychecks, accessing zero-interest loans from military-friendly banks, and protecting yourself from shutdown-related scams.

While the Military Money Manual typically focuses on evergreen content, this episode addresses an urgent situation affecting active duty service members, federal employees, and military contractors.

Topics Covered

Government Shutdown Basics:

• Active duty military deemed mission essential, must continue reporting to work
• October 1st paycheck protected (work performed in September)
• October 15th paycheck at risk
• Historical precedent: 2018-2019 Coast Guard missed paychecks for 35 days
• Backpay is guaranteed by law once shutdown ends
• Veterans, retirees, VA disability, and Social Security payments protected (separate funding sources)

USAA Government Shutdown Assistance Program:

• https://www.usaa.com/support/government-shutdown-program/
• Zero-interest loan: $500-$6,000 based on last direct deposit amount
• Requirements: Direct deposit established before shutdown, at least one qualifying deposit in 30 days prior, US/military address (APO/FPO/DPO), credit approval required
• Repayment: 3 months, two equal installments (first payment ~60 days, second ~90 days)
• Additional relief:
  • Auto/property insurance payment relief
  • Credit cards: 3-month payment extension
  • Consumer loans: 2-month extension with no interest
  • Overdraft fees waived
  • Home equity lines: 3-month payment extension

Navy Federal Paycheck Assistance Program:

• https://www.navyfederal.org/about/government-shutdown.html
• Zero-interest loan: $250-$6,000 based on last direct deposit
• Major advantages: No credit check, not reported to credit bureaus
• Eligibility: Federal employees, active duty service members, federal contractors paid directly by government (broader than USAA)
• Registration deadline: Day before scheduled payday for funds on normal pay date (can register up to 3 days after, but won't receive funds immediately)
• Automatic repayment: Once direct deposit resumes, Navy Federal automatically deducts loan amount
• Backup repayment: If shutdown continues, repayment occurs 6 days after loan receipt

Service Credit Union Options:

• 0% APR for up to 4 months
• No payments for up to 90 days
• Up to $5,000 for qualifying members
• Standard underwriting criteria applies (may require credit check)

Military Aid Societies (All Interest-Free):

• Air Force Aid Society – Falcon Loans up to $1,500 and Standard Assistance, up to 24 months of repayment. Space Force also eligible.
• Navy-Marine Corps Relief Society – Quick Assist Loan and Financial Assistance available
• Army Emergency Relief – Normally assistance available same day but no later than 48 hours. AER will provide rapid, zero-interest loans to help cover financial needs until normal operations and back pay resume. Assistance is available up to the amount of one net paycheck (maximum $6,000), with repayment beginning once pay is restored. If you or someone you know may be affected, please share this information. More information here.
• Coast Guard Mutual Assistance – Quick Loan program up to $1,000, Shutdown Loan up to 1 month's BAH per month

Historical Context:

• 2011: Near shutdown (averted)
• 2013: 16-day shutdown
• 2018: 3-day shutdown
• 2018-2019: 35-day shutdown (Coast Guard NOT paid)
• Bipartisan political theater regardless of which party controls Congress
• Military pay typically protected by last-minute "Pay Our Troops Act"

Immediate Action Steps

1. Reduce non-essential expenses - No big purchases or travel bookings
2. Contact lenders - Request payment deferrals on mortgage, car, rent, student loans, credit cards
3. Apply for 0% loans - Through USAA, Navy Federal, or Service Credit Union if needed
4. Reach out to aid societies - Before considering any payday loans, auto title loans, or carrying credit card debt
5. Watch for scams - Only use verified websites (USAA.com, NavyFederal.org), hang up and call back on suspicious calls

Long-Term Action Steps

1. Build an emergency fund - Minimum $1,000, ideally $10,000+
2. Switch to military-friendly bank - If current bank doesn't offer shutdown assistance
3. Break paycheck-to-paycheck cycle - If missing one paycheck derails your finances, you have a financial emergency
4. Turn off the news - Constant updates increase anxiety without adding value
5. Focus on what you can control - Maintain internal locus of control

Critical Security Warnings

Scam Prevention:

• Only access programs through official websites: USAA.com and NavyFederal.org
• DO NOT use payday lenders or auto title loan companies
• DO NOT go through intermediaries
• If you receive a phone call claiming to be from Navy Federal or USAA, hang up and call back using verified number from app or official website
• Verify all communications independently

Key Takeaways

1. Don't panic - This has happened before and will likely happen again
2. You will be backpaid - Military pay typically protected; backpay is guaranteed by law
3. Assistance is available - Multiple 0% loan options and interest-free aid society loans
4. Use this as motivation - Build financial resilience and emergency funds
5. Emergency funds are essential - Perfect example of why military members need cash reserves

Related Episodes

• Episode 95: Previous government shutdown episode (check for still-relevant information)

Resources & Links

Military-Friendly Banks:

• USAA.com - Government shutdown assistance
• NavyFederal.org - Paycheck assistance program
• Service Credit Union - Shutdown loan program

Military Aid Societies (Interest-Free Loans):

• Air Force Aid Society - Covers Air Force and Space Force
• Navy Marine Corps Relief Society - Quick assist loans
• Army Emergency Relief - Same-day to 48-hour assistance
• Coast Guard Mutual Assistance - Quick loan program

Apply for Assistance:

• Register with Navy Federal by day before payday for funds on schedule
• USAA requires credit approval (new requirement)
• Aid societies offer interest-free alternatives to commercial loans

Who This Episode Is For

• Active duty military facing potential missed paychecks
• Federal employees impacted by shutdown
• Federal contractors paid directly by government
• Military spouses managing finances during shutdown
• Anyone needing immediate financial assistance during government disruptions

Contact Information

Host: Spencer Reese

Connect:

• Website: MilitaryMoneyManual.com
• Instagram: @MilitaryMoneyManual

Share this episode with others in your unit or squadron so they know the steps to take during a government shutdown.

Spencer and Jamie offer one-on-one Military Money Mentor sessions. Get your personal military money and personal finance questions answered in a confidential coaching call. militarymoneymanual.com/mentor

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