Uncertainty looms as second pay period set at end of week
CAPE MAY — Amid the ongoing government shutdown, the Coast Guard Community Foundation is hoping for the best but preparing for the worst.
Active-duty U.S. Coast Guard members do not traditionally receive their regular pay during a shutdown because it is provided through federal funding, which is unavailable, and must wait until it is over before collecting their salary.
“This is not good on any level and I wish they could work it out,” Executive Director Marla Brown said.
Fortunately for those at Training Center Cape May and bases across the country, active-duty members received their pay in the middle of October. However, whether that will happen the next time is unclear.
“There is no promise of them being paid again on the 30th,” Brown said last week. “We still have no clarity on what is next to come.”
Federal law mandates that all government employees required to work during a shutdown be compensated as soon as possible after it ends. But in the meantime, they receive no pay.
As a temporary fix, President Donald Trump ordered the Pentagon to redirect money intended for research and development to issue paychecks in the middle of October.
Unfortunately, the Senate failed Oct. 23 to advance a Republican-backed measure that would pay federal employees, military members and contractors who have continued working.
Then on Friday, the U.S. Defense Department confirmed that an anonymous Trump ally had donated $130 million to help pay military personnel at the end of October, according to CBS News.
Treasury Secretary Scott Bessent said Sunday the United States will not be able to pay service members by the middle of next month if the shutdown is prolonged.
“We were able to pay the military employees from excess funds at the Pentagon, middle of this month. I think we’ll be able to pay them beginning in November,” Bessent said on “Face the Nation.” “But by Nov. 15, our troops and service members who are willing to risk their lives aren’t going to be able to get paid. What an embarrassment.”
During the partial government shutdown in January 2019, also under the administration of Trump, the Coast Guard was the only branch of the military in which service members went unpaid.
Local first responder and veterans organizations, along with food pantries and other nonprofits, began organizing collections of food, toiletries, baby formula and other items to assist those protecting our shores.
The Jersey Cape Military Spouses Club also organized a food drive and worked with the Coast Guard to set up a storefront on the base.
Brown said the club has since folded and that there “will never be a food pantry on base again,” explaining that the Coast Guard does not have the staff to manage it, nor does it have a place to store the items.
That’s why Brown is planning a gift card drive in the event that no paychecks arrive in the second pay period of the month or in the ensuing weeks. The independent nonprofit organization, which receives no federal funding, and others are taking steps to help alleviate any financial burdens that may arise.
“It’s horrible; I can’t imagine,” Brown said.
Another mitigating factor, she said, is that the country increased the top age for enlistment in the military.
“Now you’ve got low-ranking older people with families of four,” she said. “It has changed the dynamics. Not only are they dealing with young people out of high school still living on their parents’ dime, but older people with families who don’t have paychecks. It’s really stressful for families.”
Brown said the foundation is planning a gift card drive, focused on providing groceries and gasoline, and directing service members to local food pantries.
She said donations cannot go directly to members, so the foundation will collect the gift cards and distribute them.
“Military members are very prideful and don’t want to admit they need support,” she said, noting the gift cards would be distributed on a first-come, first-served basis once the program is up and running.
“You can donate to the foundation and know that your support is going directly to the families,” Brown said.
She said the foundation would be seeking gift cards “specifically for food” at grocery stores, not merchants that sell clothing and other goods, and gas stations.
“Those are the two critical things people need,” she said.
Brown said last week that she was in the process of setting up the program and would be announcing it soon on the foundation’s Facebook page — Facebook.com/CoastGuardCommunity.
No-interest loans
Crest Savings Bank has a program in which it offers no-interest loans to Coast Guard members amid a government shutdown.
In the event that no paychecks arrive this weekend, members can walk into the Cape May branch, fill out some paperwork and walk out with cash.
The bank’s Active Military Assistance Program provides “local help for local heroes.”
“Serving our country comes with challenges — your paycheck shouldn’t be one of them,” the bank’s website states. “Active Military Assistance Program helps active-duty personnel living and/or working in Cape May County during payroll disruptions.”
The program eases the loan process via:
— no loan approval process
— no fees
— no credit inquiries
— no interest expense
— no monthly payment
Loans are available for rank E-0 through E-8 and O-1 through O-3. Borrowers can get as much as 75 Percent of bi-monthly gross pay, not to exceed net pay. Payment is due within 30 days of resumption of normal pay.
Visit crestsavings.bank/active-military-assistance-program.
Food assistance
The Cape May Community Food Closet also is pitching in to help. Executive Director Nancy Hanslowe put out a social media post about the shutdown and effect on the Coast Guard community, seeking donations.
“We encouraged people to donate through our Amazon Wishlist to support the Cape May community, and we received hundreds of donations,” Hanslowe said, noting that since the organization serves the broad community, it cannot separate donations specifically just for Coast Guard families.
“We want them to have access to the full range of foods we provide, including fresh fruits and vegetables, meats and dairy products,” she added. “Amazon donations are all non-perishable items such as peanut butter, oatmeal, etc.”
Hanslowe said they had 18 Coast Guard families attend the last distribution and they were able to select groceries not only from the Amazon items but all the grocery items the food bank provides through the Community Food Bank of New Jersey and purchases through regular fundraising efforts.
“We have also been in contact with the Coast Guard Community Foundation about how best to support these service members during the shutdown, and we will continue to partner with them to monitor and flex our approach as the situation requires,” Hanslowe said.
By CRAIG D. SCHENCK/Cape May Star and Wave
