Protect Military and Federal Employees from Unfair Bank Fees Act | ChamberLight
Bills · HR 5953
IN COMMITTEE· 119TH CONGRESS
House BillHR 5953Finance and Financial Sector
Protect Military and Federal Employees from Unfair Bank Fees Act
INTRO NOV 7· LAST ACTION NOV 7
READING
2MIN
COSPONSORS
2
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
Voters should care about this bill because government shutdowns can create significant financial hardship for federal employees and military personnel, who may miss paychecks or be forced to work without pay. This bill aims to alleviate some of that stress by preventing banks and credit card companies from adding to their financial burdens with fees for insufficient funds or late payments, which can easily occur when income is disrupted.
If this bill becomes law, it would offer a small but meaningful financial safety net for a large segment of the workforce directly impacted by government funding lapses. If it doesn't pass, these employees would continue to face the risk of accumulating extra fees on top of their lost wages during any future government shutdowns, potentially leading to deeper debt or financial instability.
KEY PROVISIONS
4AI-extracted
PROVISION 01
Prohibits financial institutions from charging fees related to insufficient funds for debit payments on accounts held by covered persons during a government shutdown.
This protects federal and military personnel from penalty fees when their income is disrupted due to a shutdown, helping them avoid additional financial strain.
PROVISION 02
Prohibits credit card issuers from imposing late payment fees on covered persons if the payment was due during a government shutdown.
This prevents federal and military personnel from incurring extra debt or damaging their credit scores due to delayed payments during a period of no income.
PROVISION 03
Defines a 'covered person' as an individual in the civil service, Armed Forces, or uniformed services who is furloughed or working without pay during a government shutdown.
This clearly specifies who is eligible for the fee protections, ensuring the benefits are directed to those directly affected by a shutdown.
PROVISION 04
Defines a 'covered period' as any time when government funding is not in effect for federal agencies (i.e., a government shutdown).
This sets the precise timeframe during which the fee prohibitions are active, linking the protections directly to periods of government funding disruption.
Voters should care about this bill because government shutdowns can create significant financial hardship for federal employees and military personnel, who may miss paychecks or be forced to work without pay. This bill aims to alleviate some of that stress by preventing banks and credit card companies from adding to their financial burdens with fees for insufficient funds or late payments, which can easily occur when income is disrupted.
If this bill becomes law, it would offer a small but meaningful financial safety net for a large segment of the workforce directly impacted by government funding lapses. If it doesn't pass, these employees would continue to face the risk of accumulating extra fees on top of their lost wages during any future government shutdowns, potentially leading to deeper debt or financial instability.
KEY PROVISIONS
AI-extracted
high
Prohibits financial institutions from charging fees related to insufficient funds for debit payments on accounts held by covered persons during a government shutdown.
This protects federal and military personnel from penalty fees when their income is disrupted due to a shutdown, helping them avoid additional financial strain.
high
Prohibits credit card issuers from imposing late payment fees on covered persons if the payment was due during a government shutdown.
This prevents federal and military personnel from incurring extra debt or damaging their credit scores due to delayed payments during a period of no income.
med
Defines a 'covered person' as an individual in the civil service, Armed Forces, or uniformed services who is furloughed or working without pay during a government shutdown.
This clearly specifies who is eligible for the fee protections, ensuring the benefits are directed to those directly affected by a shutdown.
med
Defines a 'covered period' as any time when government funding is not in effect for federal agencies (i.e., a government shutdown).
This sets the precise timeframe during which the fee prohibitions are active, linking the protections directly to periods of government funding disruption.
GLOSSARY
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Appropriations
Money set aside by Congress for specific government spending. Without appropriations, government agencies cannot operate fully, leading to shutdowns.
Card issuer
The company or bank that provides credit cards to consumers.
Covered period
Any time when the government does not have funding for its operations, commonly known as a government shutdown.
Covered person
A federal civilian employee or military service member who is either sent home without pay (furloughed) or working without pay during a government shutdown.
Financial institution
A bank, credit union, or similar organization that handles financial transactions like checking accounts, savings accounts, and loans.
Furloughed
A temporary leave of absence from work, often without pay, especially when government employees are sent home due to a lack of funding.
Insufficient funds
When there is not enough money in an account to cover a payment or transaction.
ACTION TIMELINE
2 EVENTS
NOV 7, 25
Introduced in House
INTROREFERRAL
NOV 7, 25
Referred to the House Committee on Financial Services.
Includes the Army, Navy, Air Force, Marine Corps, Coast Guard, the Commissioned Corps of the Public Health Service, and the Commissioned Corps of the National Oceanic and Atmospheric Administration.
