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    HomeWorldUS Default Could Stop Military Paychecks, But Navy Federal Has a Fix

    US Default Could Stop Military Paychecks, But Navy Federal Has a Fix

    US Default Could Stop Military Paychecks, But Navy Federal Has a Fix

    Active-duty troops, reservists, civilian employees and contractors of the Defense Department may not have to go without pay if an ongoing political fight in , D.C., leads to a default on U.S. debt — if they're signed up to have their pay directly deposited into Navy Federal Credit Union, that is.

    President Biden and House Republicans are wrangling over a deal to raise the government's debt ceiling and head off a potential June 1 default, which could disrupt the issuance of paychecks. If they can't reach an agreement, Navy Federal will offer its members interest-free loans to help bridge the gap, the credit union announced Friday.

    The debt ceiling or debt limit refers to how much money the federal government may borrow to pay its bills.

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    Navy Federal has provided interest-free loans during government shutdowns in 2011, 2013 and 2018-2019, according to its news release announcing the paycheck assistance program.

    Here's how it works:

    • To qualify, a Navy Federal member's paycheck must come directly from the federal government via direct deposit, and it must be affected by the debt default.
    • Preferably no later than the day before the member's scheduled pay date, but up to three days after, the member must register to receive a loan in advance of the pay owed.
    • Loan amounts are determined in $500 increments. If…

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