S 3889

The American Lending Fairness Act of 2026 aims to give states more control over interest rates charged on loans by their state-chartered banks and credit unions. Currently, federal law limits states’ ability to regulate interest rates for out-of-state financial institutions. This bill would allow states to opt out of these federal regulations if they choose, either through legislation or a voter referendum, provided the state explicitly states its desire to maintain control over loan rates. It also repeals a section of an older law that facilitated federal preemption of state lending regulations.