Protect Military and Federal Employees from Unfair Bank Fees Act
Summary
The "Protect Military and Federal Employees from Unfair Bank Fees Act" aims to prevent financial institutions from charging certain fees to military personnel and federal employees during government shutdowns. Specifically, it prohibits fees for insufficient funds and late credit card payments during periods when appropriations are not in effect for federal agencies. The bill defines 'covered persons' as civil service employees, members of the Armed Forces, or uniformed services who are furloughed or working without pay during a covered period.
Expected Effects
If enacted, this law would provide financial relief to federal employees and military personnel during government shutdowns. It would prevent banks and credit card companies from charging fees that could exacerbate financial hardship during these periods. This could reduce stress and financial strain on affected individuals and families.
Potential Benefits
- Protects military and federal employees from incurring unfair bank fees during government shutdowns.
- Prevents late payment fees on credit cards for covered individuals during covered periods.
- Offers financial stability to those who are either furloughed or working without pay.
- Reduces financial stress and anxiety for affected families.
- Applies to a broad definition of 'covered persons' including civil service, armed forces, and uniformed services.
Potential Disadvantages
- May create a slight administrative burden for financial institutions to identify and exempt 'covered persons'.
- Could potentially lead to slightly higher fees for other customers to offset lost revenue from waived fees.
- The definition of 'covered period' is limited to government shutdowns, potentially excluding other financial hardship scenarios.
- The bill does not address the root cause of government shutdowns, only the financial consequences for employees.
- The impact on the overall financial health of institutions is likely minimal, but could be more pronounced for smaller credit unions or banks.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it seeks to promote the well-being of government employees and military personnel. Congress has the power to regulate commerce and financial institutions, suggesting this bill falls within its enumerated powers (Article I, Section 8). No specific constitutional conflicts are immediately apparent.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).