USA government shutdown: Reasons behind government shutdown

If the USA government shutdown lasts more than a few days, some federal workers will not get paid on time even though they have to keep working. This includes members of the armed services.

As a stopgap, USAA announced Friday that it would offer interest-free loans to military members whose paychecks are affected by the shutdown, which began early Saturday when Congress failed to agree on a spending bill.

“We are prepared to offer a no-interest payroll advance loan to our military members in the event of a protracted shutdown that disrupts military pay on Feb. 1,” the Texas-based financial services company said.

The offer is not available to USAA members who work in other government jobs whose pay is delayed because of the shutdown. In addition, international regulations mean that many military members stationed overseas will not be able to receive the loans.

A Defense Department memo issued on Thursday said that active-duty military members would continue to work but not be paid until money was appropriated by Congress. Essential civilian employees will also work but not be paid, while non-essential civilian employees will be furloughed until the shutdown ends.

Outside the U.S., the loans are only available for deployed soldiers serving in Belgium, Canada, China, Germany, Philippines, South Korea, Spain, Ireland and the UK.

USAA was founded in 1922 by military officers who needed auto insurance. Today it offers insurance, banking, investments and retirement products to over 12 million current and former military members and their families.

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