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Congress·Enacted·10 months ago

Trump Signs Resolution Blocking CFPB's Overdraft Fee Limits on Big Banks

Legislative Progress

✓ Filed
✓ Review
✓ Senate
✓ House

217–211

✓ President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Key Points

  • Congress passed a resolution to stop a new rule from the Consumer Financial Protection Bureau (CFPB). This rule was designed to lower the amount of money big banks can charge you when you spend more than what is in your bank account.
  • The original rule targeted very large banks, which are usually those with more than $10 billion in assets. It would have forced these banks to either treat overdrafts like credit cards or limit fees to a much lower price, potentially between $3 and $14.
  • By blocking this rule, Congress is allowing these large banks to continue setting their own overdraft fees, which often average around $35 per transaction. This means consumers will likely continue to pay higher fees for overdrawing their accounts.
  • Supporters of this move argue that the new limits would have made it too expensive for banks to offer overdraft services at all. They believe this would hurt low-income customers who rely on these services to cover emergency expenses.
  • Critics of this action say it protects bank profits at the expense of regular people. They point out that overdraft fees take billions of dollars every year from Americans who are already struggling to pay their bills.
Economy Finance

Milestones

8 milestones26 actions
May 9, 2025

Became Public Law No: 119-10.

May 9, 2025

Signed by President.

May 5, 2025House

Presented to President.

Apr 9, 2025House

Motion to reconsider laid on the table Agreed to without objection.

Apr 9, 2025House

On passage Passed by the Yeas and Nays: 217 - 211 (Roll no. 96). (text: CR H1519)

Vote Results

3 votes
HousePassedPassageApr 9, 2025

On Passage

217
211
Democrat
0 – 210 · 3
Republican
217 – 1 · 2
View full roll call
SenatePassedProceduralMar 26, 2025

On the Motion to Proceed

52
47
Democrat
0 – 44 · 1
Republican
52 – 1
Independent
0 – 2
View full roll call
SenatePassedMar 27, 2025

On the Joint Resolution

52
48
Democrat
0 – 45
Republican
52 – 1
Independent
0 – 2
View full roll call

Related News

5 articles
Bloomberg Law·10 months ago

Trump Signs Repeals of CFPB Overdraft, Digital Payment Rules

President Donald Trump officially repealed Biden-era CFPB rules capping overdraft fees at $5 for large banks. The measure, passed under the Congressional Review Act, eliminates a rule intended to slash the average $35 charge consumers face, potentially saving families $5 billion annually.

C=
American Banker·11 months ago

Senate votes to nullify CFPB overdraft rule

The Senate voted 52-48 to pass a Congressional Review Act resolution overturning the CFPB's overdraft rule. While Republicans argued the cap would limit consumer choice, Democrats warned that repealing the $5 cap would significantly raise costs for working families.

C~
ABA Banking Journal·11 months ago

House votes to reverse CFPB overdraft rule

The House voted 217-211 to overturn the CFPB's limit on overdraft fees. Industry leaders thanked Congress for acting to ensure banks can continue offering overdraft services that consumers rely on, rather than being forced to discontinue them due to 'unlawful government price caps.'

CR+

Source Information

Document Type

Congressional Bill

Official Title

A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".

Bill NumberSJRES 18
Congress119th Congress
ChamberSenate
Latest ActionBecame Public Law No: 119-10.

Sponsor

Cosponsors

(16)
R: 16

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.