HR7866119th CongressWALLET

American Lending Fairness Act of 2026

Sponsored By: Representative Davidson

Introduced

Summary

State opt-out for federal interest-rate exportation parity lets states block the federal parity rule for loans made by banks and credit unions they charter when the state enacts a law or certifies voter approval. The bill amends the Federal Deposit Insurance Act and the Federal Credit Union Act and repeals Section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980.

Show full summary
  • States can require loans made by institutions they charter to follow state interest-rate and loan rules instead of the federal parity rule. The opt-out takes effect for loans or loan commitments entered after the state's law or voter certification date.
  • Institutions chartered in an opting-out state can offer loans under those state terms. The change applies to both insured depository institutions and insured credit unions.
  • Borrowers may see different caps, fees, or contract terms on loans from state-chartered lenders depending on whether the lender's state has opted out. This creates more variation in loan rules across states.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

States can opt out of loan rules

If enacted, this bill would let a State opt out of a federal interest-rate parity rule for loans made by banks or credit unions chartered by that State. To opt out, the State must pass a law or certify voter approval that explicitly says the State does not want the federal rule to apply. The opt-out would apply only to loans (or loan commitments) made after the date that law or certification takes effect, and it would cover state-chartered insured banks and insured credit unions. The bill would also repeal Section 525 of a 1980 statute and preserve any State actions or certifications made under that section before enactment.

Sponsors & CoSponsors

Sponsor

Davidson

OH • R

Cosponsors

  • Barr

    KY • R

    Sponsored 3/9/2026

  • Rep. Horsford, Steven [D-NV-4]

    NV • D

    Sponsored 5/7/2026

  • McBride

    DE • D

    Sponsored 5/7/2026

Roll Call Votes

No roll call votes available for this bill.

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