Congress shields federal workers from bank fees during shutdowns they don't cause
H.R. 5953 — Protect Military and Federal Employees from Unfair Bank Fees Act · Filed by Sara Jacobs (D-CA) · 2 cosponsors · Introduced Nov 7, 2025 · Referred to committee
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What it does
This bill prohibits banks and credit card companies from charging overdraft fees, insufficient-funds fees, or late-payment fees to federal employees and military personnel during government shutdowns when they are furloughed or working without pay. The ban applies only to covered persons—federal civil service, Armed Forces, and uniformed services employees—during periods when federal appropriations lapse.
Why we flagged it
The bill's operative mechanism is a fee prohibition targeting a specific hardship—federal workers without pay during shutdowns. It is not a general deregulation or industry carve-out; it is a narrow, time-bound protection for a defined vulnerable group during a defined crisis.
What the text implies
- The bill does not address the underlying shutdown or appropriations process; it only shields workers from one downstream harm. Banks may still pursue other collection remedies (wage garnishment, account freezes, credit reporting) not explicitly prohibited here.
- The definition of 'covered person' is narrow: only those furloughed or excepted and working without pay. Federal employees on paid leave or those in agencies with continuing appropriations are not protected, creating a two-tier system within the federal workforce.
- The bill applies to purchase cards issued by the Federal Government for official use, potentially affecting agency procurement and reimbursement workflows if banks refuse to process transactions during shutdowns.
- No enforcement mechanism, penalty, or private right of action is specified in the text; compliance and remedies depend on existing consumer protection law and regulatory authority.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Federal employees and military personnel are harmed by shutdowns they do not cause and cannot control; this bill prevents banks from compounding that harm by charging fees when workers cannot pay due to government failure. The restriction applies only during shutdowns and only to workers without pay, making it a narrow, targeted protection for a vulnerable group during a specific crisis.
Named in the bill
Federal employees, Military personnel, Armed Forces, Uniformed services, Financial institutions, Card issuers, Banks, Electronic Fund Transfer Act, Consumer Credit Protection Act
Where it stands
2 cosponsors: 2 Democrats.
- Nov 7, 2025 — Introduced · Congress.gov: “Introduced in House”
- Nov 7, 2025 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (1,691 characters) on May 21, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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