American Lending Fairness Act of 2026
A bill to restore and clarify the intent of the Federal interest rate exportation parity for State-chartered banks by allowing States to opt out of preemption only with respect to loans made by their own chartered institutions, and for other purposes.
This bill, SB3889, aims to give states the ability to set their own interest rates for loans made by banks chartered within their own state, while still allowing them to opt out of federal interest rate regulations. This means states could choose to have different rules for interest rates on loans compared to the federal government, but only for loans issued by banks within that state.
The American Lending Fairness Act of 2026 would mainly affect state-chartered banks and consumers within those states. It could potentially impact the cost of loans for borrowers, depending on the interest rates set by the state.
As of the latest update on February 12, 2026, the bill was introduced and referred to the Senate Committee on Banking, Housing, and Urban Affairs. This is the first step in the legislative process, and the bill has not yet been voted on or moved to the next stage.
