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

This bill, titled the Federal Worker Credit Protection Act of 2026, aims to provide specific protections for federal workers regarding their credit reports during periods of government shutdowns. Here’s a breakdown of the key points:

Prohibition on Reporting Adverse Information

The bill amends the Fair Credit Reporting Act to prevent consumer reporting agencies from reporting adverse information about the debts of federal workers during a government shutdown. This means that if a federal worker is unable to make payments on debts because they are not receiving their salary during a shutdown, that negative information cannot be reported to credit agencies, thus protecting their credit scores from being negatively affected.

Definitions

Covered Individual: This refers to any employee of the United States Government or the District of Columbia who works for an agency that is undergoing a funding lapse.
Covered Period: This starts when there is a lapse in appropriations that lasts over 24 hours and extends until 30 days after normal funding is resumed.

Request to Delete Adverse Information

If a federal worker, identified as a covered individual during the covered period, makes a direct request to a consumer reporting agency, that agency must delete any adverse information related to their debts that falls under the provisions of this bill. This deletion must occur at no charge to the worker, preventing such negative information from being disclosed in their credit reports.

Notification Requirement

The bill requires the Director of the Office of Management and Budget (OMB) to notify consumer reporting agencies when a government shutdown begins and ends. This notification is essential for ensuring that consumer reporting agencies comply with the new protections granted to federal workers during these periods.