American Lending Fairness Act of 2026
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, known as the American Lending Fairness Act of 2026, aims to adjust how interest rates are set for loans by state-chartered banks. It proposes that states should have the option to set their own interest rates for loans made by banks they charter, rather than having these rates automatically match federal standards. This change would only affect state-chartered banks and not those chartered by the federal government.
The bill would mainly impact borrowers who take out loans from banks chartered by their state, potentially allowing for more competitive and varied interest rates. It could also influence state regulators and financial institutions by giving them more authority over lending practices within their jurisdictions.
HB7866 was introduced on March 9, 2026, and has since been referred to the House Committee on Financial Services. On September 16, 2026, the committee held a session to consider and amend the bill, which was then ordered to be reported with changes. The bill has bipartisan support from its sponsors, including both Republicans and Democrats.
