A bill to protect the credit of Federal workers during a government shutdown.
- Bill Number
- S. 4478
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Status
- Introduced
- Latest Action
- 2026-04-30: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-05-01T10:56:31Z
AI-Generated Summary
Purpose
The Federal Worker Credit Protection Act of 2026 aims to shield federal employees from negative impacts on their credit reports during government shutdowns caused by lapses in funding (appropriations). It prevents credit reporting agencies from including harmful debt-related information on these workers' reports for a limited time.
Key Provisions
- Prohibition on Adverse Reporting: Amends the Fair Credit Reporting Act to block "nationwide" consumer reporting agencies (e.g., major credit bureaus like Equifax) from including adverse debt information (e.g., late payments) for covered individuals during a covered period.
- Covered individual: A U.S. federal government or District of Columbia employee whose agency faces a funding lapse.
- Covered period: Begins after a funding lapse exceeds 24 hours and ends 30 days after funding is restored.
- Deletion and Non-Disclosure: Agencies must delete such information from a covered individual's credit report free of charge upon direct request and prohibit its disclosure to others.
- Government Notification: The Director of the Office of Management and Budget (OMB) must notify credit agencies of the start and end of funding lapses affecting these employees.
- Effective Date: Applies to covered periods starting on or after February 1, 2026.
Significant Changes to Existing Law
- Adds a new exclusion (paragraph 9) to Section 605(a) of the Fair Credit Reporting Act, which lists items that cannot appear on credit reports (e.g., certain bankruptcies or arrests).
- Updates a technical reference in Section 605(c)(1) to include the new paragraph.
- Introduces specific protections tied to government shutdowns, which were not previously addressed in credit reporting laws.
Potential Impacts
- Federal Workers: Reduces risk of credit damage from missed payments during unpaid furloughs, helping maintain access to loans, housing, and jobs.
- Consumer Reporting Agencies: Increases administrative duties, including processing free deletion requests and responding to OMB notifications.
- Government Agencies: OMB gains a notification responsibility; no direct fiscal impact on federal budgets.
- No notable effects on citizens outside federal employment or international relations.
Main Stakeholders
- Federal and D.C. Employees: Primary beneficiaries during shutdowns.
- Consumer Reporting Agencies: "Nationwide" agencies under Section 603(p) of the Fair Credit Reporting Act must comply.
- Office of Management and Budget (OMB): Responsible for shutdown notifications.
- Congress and Agencies: Indirectly affected through shutdown management.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens consumer protections under the Fair Credit Reporting Act without overriding debt obligations—only affects credit reporting, not payment requirements.
- Constitutional: No apparent challenges; aligns with Congress's authority over federal appropriations and commerce regulation.
- Political: Addresses recurring shutdown hardships (e.g., 2018–2019 events); introduced with bipartisan Senate support, signaling consensus on worker protections.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (5)
Sen. Gallego, Ruben [D-AZ], Sen. Van Hollen, Chris [D-MD], Sen. Kaine, Tim [D-VA], Sen. Warner, Mark R. [D-VA], Sen. Alsobrooks, Angela D. [D-MD]
Recent Actions
- 2026-04-30: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-04-30: Introduced in Senate
Bill Versions
- Federal Worker Credit Protection Act of 2026 — issued 2026-04-30 — PDF (3 pages)