WASHINGTON – Today, Senator Bernie Moreno (R-Ohio) and Rep. Warren Davidson (R-Ohio) introduced the American Lending Fairness Act of 2026 to restrict states from using opt-outs to impose their interest rate caps on loans from out-of-state chartered banks and credit unions.
“When states use opt-outs to slap their own interest rate caps on out-of-state lenders, it is hardworking Americans who feel the pain,” said Senator Moreno. “I am committed to restoring clear national standards and protecting access to credit for all Americans, regardless of where they live.”
“Federal law should not pick winners and losers based on a bank’s charter,” said Rep. Davidson. “The American Lending Fairness Act restores decades-long precedent, protects consumers’ right to shop for interest rates across state lines, and ensures they benefit from real competition.”
Senator Moreno’s American Lending Fairness Act of 2026 restores the federal interest rate preemption for state-chartered banks and credit unions in interstate lending. This legislation preserves states’ authority to regulate in-state chartered institutions, protects interest rate exportation, and promotes competitive parity with national banks.
The bill directly addresses the Tenth Circuit’s 2025 decision in National Association of Industrial Bankers v. Weiser, which allowed states like Colorado to apply their own caps to loans originated by out-of-state lenders.
Read the full bill text HERE.
Stakeholder Quotes:
“We applaud Sen. Moreno and Rep. Davidson for introducing this important legislation to preserve the competitive parity that is such an essential principle of our nation’s dual banking system. We appreciate their efforts to ensure state-chartered banks can compete on a level playing field with national banks, and we urge the House and Senate to move this bill forward,” said Rob Nichols, President and CEO of the American Bankers Association (ABA).
“A bank’s home state should never become a regulatory cage. Modernizing DIDMCA is essential to protecting the dual banking system and ensuring Ohio’s state-chartered banks can compete fairly in a digital-first economy. Without this fix, we shrink the marketplace, limit consumer choice, and drive up costs for borrowers. This is a common-sense update that strengthens competition and protects communities across Ohio and the country,” said Michael Adelman President and CEO of the Ohio Bankers League (OBL).
“We are grateful to Senator Moreno and Congressman Davidson for introducing this important legislation that will cut costs and increase flexibility for credit unions to best serve their members. At a time when many hardworking people and families are struggling to make ends meet, this bill will help credit unions do what they do best: serve the financial needs of members in a way that works best for them, without navigating a complex patchwork of different state laws and regulations that increase costs and add barriers to financial access. We look forward to working closely with Senator Moreno and Congressman Davidson to get this bill signed into law,” said the Ohio Credit Union League.
“Senator Moreno deserves enormous credit for stepping up to ensure that consumers and small businesses continue to have access to affordable, regulated credit—no matter where they live,” said Frank Pignanelli, Executive Director of the National Association of Industrial Bankers (NAIB). “The bill preserves the essential foundation of interstate banking and restores much-needed clarity and common sense. We simply can’t turn back the clock on a national credit market that has benefited consumers in every state.”
“AFSA greatly appreciates and supports Senator Moreno’s ‘American Lending Fairness Act of 2026,’ which would continue the level playing field between state and nationally chartered banks that has existed for decades, ensuring consumers have access to a wider set of credit options,” said Celia Winslow, President and CEO, American Financial Services Association (AFSA).
“We applaud Senator Moreno and Congressman Davidson for their leadership in introducing the bicameral American Lending Fairness Act of 2026,” said Penny Lee, President and CEO of the Financial Technology Association (FTA). “This legislation will give consumers and small businesses more access to credit, enhance product offerings, and ensure competitive pricing by providing consistent rules for nationwide lending. We look forward to supporting this effort as it progresses.”
“Modern proponents of states opting out of DIDMCA are interested in a narrow agenda of stopping banks from working with technology firms to expand access to credit. They are attempting to weaponize the opt-out provision of this 1980 law, and they never acknowledge the full implications for a state (and its banks) if it pursues this course of action. The American Lending Fairness Act of 2026 would add the clarity needed to address this misrepresentation and abuse of DIDMCA, and we appreciate you all introducing this important legislation,” said Andrew Duke, CEO, Online Lenders Alliance (OLA).
“Senator Moreno and Congressman Davidson’s American Lending Fairness Act is about restoring legal certainty and competitive parity,” said Jason Stverak, Chief Advocacy Officer of the Defense Credit Union Council (DCUC). “For decades, interest rate exportation has provided a stable, predictable framework that allows credit unions to serve members across state lines—especially military families who move often due to permanent change-of-station orders.”
“The American Lending Fairness Act of 2026 is a smart, practical step toward modernizing the rules that govern how credit unions serve their members. We appreciate Senator Moreno and Congressman Davidson for recognizing that outdated and overlapping requirements ultimately increase costs for consumers. Credit unions exist to expand opportunity, not navigate unnecessary complexity. When policymakers streamline the framework, it allows credit unions to devote more time, resources, and capital to helping families buy homes, finance small businesses, and manage everyday expenses. America’s Credit Unions strongly supports this legislation and looks forward to working with Congress to ensure it delivers meaningful benefits to the communities credit unions serve,” said Scott Simpson, President/CEO, America’s Credit Unions (ACU).
“Responsible bank-fintech partnerships increase access to safe and affordable credit options for hard working American families. Through DIDMCA, Congress created a national framework to ensure community banks could compete on equal footing and serve consumers across state lines,” said Phil Goldfeder, CEO of the American Fintech Council (AFC). “Recent state attempts to opt-out of DIDMCA reduces access at a time when affordable credit is more important than ever. We applaud Senator Moreno and Congressman Davidson for introducing the American Lending Fairness Act to restore Congress’s original intent of strengthening the dual banking system and protecting families and small businesses from the harmful consequences of a fragmented, state-by-state regime.”
“We support legislation that reinforces America’s dual-banking system by ensuring regulatory parity between state- and federally chartered banks. A clear, uniform national standard prevents states from selectively walling off state-chartered banks, preserves responsible access to credit – especially for consumers and small businesses with the fewest options – and avoids a costly patchwork of rules that stifles innovation, competition, and efficiency. This is a commonsense step to keep credit markets fair, consistent, and accessible nationwide,” said Parris Sanz, EVP, General Counsel and Head of Policy & Government Relations, WebBank.
This legislation is also supported by:
- Consumer Bankers Association (CBA)
- Delaware Bankers Association
- Nevada Bankers Association
- Utah Bankers Association
- Cross River