H.R. 7866, the American Lending Fairness Act of 2026, advanced out of committee on September 16, 2026.
H.R. 7866 — American Lending Fairness Act of 2026
What it does
This bill allows individual states to opt out of federal interest-rate preemption rules, but ONLY for loans made by banks and credit unions chartered within that state. It repeals the existing federal opt-out mechanism (Section 525 of the 1980 Deregulation Act) and replaces it with a narrower one: a state can now block federal rate caps on its own-chartered lenders, but cannot extend that block to out-of-state lenders operating within its borders. The effect is to restore state authority over in-state lending while preserving federal preemption for interstate lenders.
Quorum's transparency scan gave American Lending Fairness Act of 2026 a moderate transparency flag.
What happens next
H.R. 7866 advanced out of committee. Next stop: a floor vote.
Who is behind it
Filed by Warren Davidson. Cosponsored by Andy Barr, Josh Gottheimer, Sarah McBride and Scott Fitzgerald.
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