Democrat Rep. Jasmine Crockett Pushes New Bill To Halt Student Loan Payments For Federal Workers During Shutdown – Financial Freedom Countdown

As the federal government shutdown drags into its fourth week, roughly 750,000 federal employees remain without pay. Many are now struggling to cover bills and meet student loan obligations; a situation one Democratic lawmaker says her new bill is designed to fix.

The HELP FEDs Act: What It Does

Representative Jasmine Crockett (D-Texas) introduced the Halting Education Loan Payments during Federal Employment Disruptions Act, known as the HELP FEDs Act, to temporarily pause student loan payments for federal workers affected by the shutdown.

The measure would:

Automatically suspend student loan payments and interest accrual for any federal employee furloughed or working without pay during a shutdown.

Prohibit late fees, penalties, and adverse credit actions for missed payments tied to a lapse in federal funding.

Require the Department of Education—in consultation with the Department of Personnel Management, the Administrative Office of the U.S. Courts, the Clerk of the House, and the Secretary of the Senate—to issue clear regulations and guidance to swiftly implement these protections..

Why It’s Being Proposed

According to Crockett’s office, millions of Americans are already struggling with student loan repayment, and the current shutdown could push thousands of federal employees even further behind. The bill aims to prevent missed payments from snowballing into defaults or damaged credit during the funding lapse.

Crockett’s Statement

In announcing the proposal, Crockett blamed the ongoing shutdown on Republican leadership.

“Federal workers have faced unprecedented challenges over the last ten months, and now, because of the Republicans’ shutdown, they’re being forced to shoulder even more financial strain,” said Congresswoman Jasmine Crockett. “Missing a paycheck is stressful enough. But being penalized for missing student loan payments you can’t make because the government stopped paying you? That’s unconscionable. These are hardworking public servants keeping our country running—they deserve protection, not punishment.”

What This Bill Means for Students and Federal Staff

For those federal employees in the shutdown gap, the bill promises real relief: suspension of payments, no interest growth, no credit hits; at least on paper. It could avoid a cascade of personal financial disasters stemming from something beyond their control.

But it is important to note that this relief is contingent on passage of the law; and effective agency action; which may not come in time to stop all the damage.

Political Context: A Divided Washington

The shutdown has entered its 28th day amid partisan deadlock

Republicans accuse the Democrats of triggering unnecessary hardship by refusing to vote on a clean funding bill.

Fiscal Concerns and GOP Resistance

While the proposal targets a narrow group of borrowers, some Republicans have expressed skepticism toward new federal relief programs tied to student debt. They argue that such measures; however temporary, risk expanding federal spending and setting new precedents for selective loan pauses whenever a political standoff occurs.

The Congressional Budget Office (CBO) finds extending the expiring premiums would increase the deficit by roughly $350B through 2035.

Implementation Hurdles Ahead

Even if the bill gains traction in the House, it would still need to pass the Senate and reach the president’s desk before taking effect.

Given the divided government and competing shutdown priorities, the HELP FEDs Act faces an uphill climb in the legislative process.

Broader Context: Student Debt Still a Flashpoint

The Biden administration’s broader efforts to forgive or pause student debt have faced repeated court challenges and strong opposition from fiscal conservatives.

This latest proposal, while limited to shutdown-affected workers, adds to the ongoing debate over how much relief Washington should provide to borrowers.

A Shutdown Standoff Puts Federal Workers in Financial Limbo

Rep. Jasmine Crockett’s bill reflects Democrats’ continued push to tie financial relief to federal worker protections during shutdowns.

Supporters say it’s a common-sense safeguard for those caught in the middle of political gridlock. Critics counter that it’s another short-term fix that sidesteps the larger debate over government spending and accountability.

Either way, the HELP FEDs Act underscores how the shutdown’s ripple effects are now extending beyond federal paychecks; into America’s already fragile student loan system.

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