Congress blocks CFPB overdraft-fee limits for biggest banks

What it does

This resolution uses the Congressional Review Act to block a CFPB rule that would restrict overdraft fees charged by the largest banks. The rule, finalized in December 2024, would have limited how banks charge overdraft fees on accounts at very large financial institutions. By disapproving it, Congress prevents the rule from taking effect, allowing large banks to continue their current overdraft fee practices without the new restrictions.

Why we flagged it

This is a Congressional Review Act disapproval resolution that blocks consumer protection regulation. Its sole function is to prevent a CFPB overdraft-fee restriction from taking effect, directly benefiting large financial institutions at the expense of consumer protections.

What the text implies

• Disapproval under the CRA is permanent: the CFPB cannot reissue a substantially similar rule without new congressional authorization, effectively locking in the status quo on overdraft fees at large banks for the remainder of this Congress.
• The rule targeted 'very large financial institutions' (likely those with $10B+ in assets), meaning community banks and smaller lenders remain subject to existing overdraft regulations, creating a two-tier system that favors consolidation.
• Overdraft fees disproportionately affect lower-income and unbanked consumers who rely on overdraft protection; blocking limits on these fees perpetuates a regressive wealth transfer from financially vulnerable populations to large banks.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Ordinary consumers, particularly those with lower account balances who are most vulnerable to overdraft fees, lose a regulatory protection that would have limited fees charged by the largest banks. The blocked rule would have constrained a major source of bank revenue extracted from financially vulnerable customers.

Who stands to gain

• Large commercial banks (assets >$10 billion)
• Financial institutions charging overdraft fees

Named in the bill

Bureau of Consumer Financial Protection (CFPB), Very Large Financial Institutions, U.S. House of Representatives, Committee on Financial Services, Congressional Review Act (Title 17 Section 105)

Where it stands

17 cosponsors: 17 Republicans.

• Feb 13, 2025 — Introduced · Congress.gov: “Introduced in House”
• Feb 13, 2025 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”
• Mar 5, 2025 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Mar 5, 2025 — Reported out of committee · Congress.gov: “Ordered to be Reported by the Yeas and Nays: 30 - 19”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

4 lobbying clients named this bill on 8 disclosure filings across 3 quarters, Dec 2025 to Jun 2026. Those filings disclosed $56,830,000 in lobbying spend. A filing names 34 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 72% of bills with at least one filing.

J. Hill, the sponsor, reported $1,558,189 in PAC receipts in the 2026 cycle.

• Chamber of Commerce of the U.S.A. — $54,660,000 on 3 filings
• Consumer Bankers Association — $2,000,000 on 2 filings
• New York Bankers Association — $90,000 on 2 filings
• Gowest Credit Union Association — $80,000 on 1 filing

Lobbying Disclosure Act filings through Jul 21, 2026. A filing shows who paid to lobby on a bill it names, not what changed.