Senators Introduce American Lending Fairness Act To Clarify DIDMCA Opt-Out Authority

On February 12, Senator Bernie Moreno introduced the American Lending Fairness Act of 2026, legislation that would amend the Federal Deposit Insurance Act and the Federal Credit Union Act to clarify the scope of federal interest rate exportation for state-chartered banks and credit unions.

The bill would revise the Federal Deposit Insurance Act and the Federal Credit Union Act to provide that, if a state elects to opt out of federal interest rate preemption, that decision would apply only to loans made by institutions chartered by that state. As drafted, a state could continue to regulate the rates charged by its own state-chartered institutions, but it could not extend those caps to loans made by out-of-state, state-chartered banks or credit unions relying on federal authority.