Congress·In Committee·S. 3721

Empowering States' Rights To Protect Consumers Act of 2026

Senate Bill Would Let States Cap Credit Card and Loan Interest Rates, Blocking Out-of-State Bank Loopholes

Jan 29·View on Congress.gov·Read full text

This bill is one vehicle in a longer effort. See the full story across every version.View effort →

Next up: A senate committee

A senate committee must act next: committee consideration.

Legislative Progress

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How we got here

This bill’s path across every version that has carried it.

Reintroduced
Reintroduced from S. 1934 (118th), which died when its Congress ended.
S. 1934 (118th) →

Key Points

This bill would let each state set its own maximum interest rate for loans and credit cards. Right now, big banks often follow the laws of the state where the bank is headquartered, which might have much higher limits than the state where the customer actually lives.
The new rule would apply to most types of borrowing, including credit cards and personal loans, but it would not affect home mortgages. The limit would include both the interest rate and any fees charged by the lender for the transaction.
If passed, this would mean that if your state has a law capping interest at 18%, a credit card company would have to follow that limit for you, even if they are based in a state with no limits at all.
The plan aims to protect people from high-interest debt and what some call "predatory lending." By giving power back to the states, supporters hope to make it easier for local governments to stop lenders from charging rates they consider to be unfair or extreme.

Economy FinanceCivil Rights

Impact Analysis

Personal Impact

Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works

Small business owners who rely on credit cards or personal loans could benefit from lower interest rates if their state caps rates below current market levels. However, some small business owners could find it harder to get approved for credit at all, since lenders may tighten lending standards rather than offer loans at lower rates.

ImpactCertaintyScopeDurationSentiment

Milestones

2 milestones2 actions

Jan 29, 2026Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.

Jan 29, 2026

Introduced in Senate

The bill was officially filed and given a number. It now enters the legislative queue.

Related News

2 articles

BadCredit.org·Feb 9

Senate Bill Would Let States Cap Credit Card Interest Rates

Senators Whitehouse, Warren, Reed, and Merkley introduced legislation to restore state authority over consumer loan interest rates. The bill aims to address record credit card debt by allowing states to bypass federal rules that currently let national banks follow their home state's laws.

Center

Quiver Quantitative·Jan 30

S. 3721: Empowering States' Rights To Protect Consumers Act of 2026

The Empowering States' Rights To Protect Consumers Act of 2026 proposes an amendment to the Truth in Lending Act. The main goal is to give states the authority to set maximum annual percentage rates (APRs) on consumer credit transactions, excluding residential mortgage transactions.

Center

No votes or related bills recorded for this bill yet.