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Bill

S 4478

Federal Worker Credit Protection Act of 2026

119th Congress Introduced by Angela Alsobrooks and 5 co-sponsors

Protect federal workers’ credit: during government shutdowns, remove adverse debt info from their credit reports upon request and notify credit agencies of shutdown periods.

Introduced in Senate
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WeVote Research Nonpartisan
Bill Summary · S 4478

Summary: Federal Worker Credit Protection Act of 2026 (S.4478, 119th Congress)

Purpose and intent

  • The bill seeks to protect the credit information of federal workers during government funding lapses (i.e., government shutdowns) by prohibiting reporting of adverse debt information for affected individuals and requiring removal of such information from credit reports during covered periods.

Key provisions and changes

  • Amendment to Fair Credit Reporting Act (FCRA), Section 605(a):

    • Adds a new item to be treated as adverse information that cannot be reported during a covered period related to federal workers’ debt.

  • New subsection on Government Shutdowns (defined in subsection (i)):

    • Covered Individual: An employee of the U.S. government or the District of Columbia whose employing agency experiences a lapse in appropriations. Covered Period: The period starting on the first day there is more than a 24-hour lapse in appropriations and ending 30 days after the lapse ends (i.e., after there is no longer a lapse in appropriations).

  • Protections during the covered period:

    • Request to Delete: Upon direct request from a covered individual, a consumer reporting agency must, at no charge, delete the adverse debt information related to the federal employee’s debt from that employee’s credit report and must not disclose it to anyone requesting the report.
    • Notification to Agencies: The Director of the Office of Management and Budget must notify each consumer reporting agency of the start and end of every lapse in appropriations affecting covered individuals.

  • Technical/ conforming changes:

    • The bill amends Section 605(c)(1) to include the new paragraph (9) alongside existing paragraphs (4) and (6), ensuring consistency with the new protections.

  • Effective date:

    • The act applies to covered periods that begin on or after February 1, 2026.

Who is affected

  • Covered individuals: Federal employees and District of Columbia employees whose agencies experience a government funding lapse (i.e., during a shutdown).
  • Consumer reporting agencies: Agencies that collect and report credit information (as defined in FCRA section 603(p)).
  • OMB and federal agencies: Responsible for timely notification to credit reporting agencies about the start and end of shutdown periods.

Procedural and timeline aspects

  • Legislative status: Introduced in the Senate on April 30, 2026; referred to the Committee on Banking, Housing, and Urban Affairs.
  • Action timeline: Effective for covered periods beginning on or after February 1, 2026; requires coordination between OMB and credit reporting agencies to initiate start/end notices for each lapse in appropriation.

Potential impact and considerations

  • Credit protection during shutdowns: Aims to prevent federal workers' credit scores from being negatively affected by debt reporting that may arise or be reported during a lapse in government funding.
  • Administrative burden: Requires mechanisms for processing deletion requests and for timely notifications to credit reporting agencies, potentially increasing coordination requirements between OMB and reporting entities.
  • Privacy and accuracy: Focuses on accuracy and consumer rights by allowing deletion of affected information upon request, without charge.

This summary captures the bill’s main objective, the specific protections it would create, who would be covered, and the key procedural timing elements.

Compiled from official sources — confirm details with the bill’s official record.

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