American Lending Fairness Act of 2026

Key Points

• This bill changes how states control interest rates on loans. Currently, some states try to set limits on how much interest any bank can charge their residents, even if the bank is based in a different state. This proposal would limit that power.
• Under this plan, a state could only set interest rate rules for banks and credit unions that are actually based within its own borders. It would prevent a state from applying its local interest rate caps to banks that are headquartered in other states.
• This is important because many credit card companies and online lenders are based in states that allow very high interest rates. If this bill passes, your home state would not be able to stop those out-of-state companies from charging higher rates than what your local laws allow.
• The bill would also cancel existing state laws that currently try to block these high out-of-state interest rates. It aims to make sure banks can 'export' the interest rates from their home state to customers across the entire country without interference.
• Senator Moreno introduced this bill to clarify federal banking laws. It would essentially protect the ability of large national lenders to offer the same interest rates to all customers, regardless of which state the customer lives in.