WASHINGTON– The American Lending Fairness Act of 2026, which would protect parity for state-chartered credit unions and clarify the Depository Institutions Deregulation and Monetary Control Act (DIDMCA), has been introduced in Congress.
It is being sponsored by Sen. Bernie Moreno (R-OH) and Rep. Warren Davidson (R-OH). The legislation has the backing of credit unions.
According to America’s Credit Unions, the DIDMCA allows state credit unions and banks to export their home-state interest rates across state lines. The bill seeks to address a 2023 Colorado law that would impose the state’s interest rate and fee limitations on out-of-state, state-chartered institutions that lend to Colorado borrowers, but leave federal credit unions and national banks preempted, America’s Credit Unions explained.
‘Smart Practical Step’
“The American Lending Fairness Act of 2026 is a smart, practical step toward modernizing the rules that govern how credit unions serve their members,” ACU President and CEO Scott Simpson said in a statement. “We appreciate Senator Moreno and Congressman Davidson for recognizing that outdated and overlapping requirements ultimately increase costs for consumers. Credit unions exist to expand opportunity, not navigate unnecessary complexity. When policymakers streamline the framework, it allows credit unions to devote more time, resources, and capital to helping families buy homes, finance small businesses, and manage everyday expenses. America’s Credit Unions strongly supports this legislation and looks forward to working with Congress to ensure it delivers meaningful benefits to the communities credit unions serve.”
Part of Joint Letter
America’s Credit Unions noted it also joined a joint letter of support for the bill and outlined concern for the Colorado law.
“Colorado’s proposed interpretation of DIDMCA presents immense threats to American consumers, small businesses, and the institutions that serve them,” the letter states. “Similar actions by other states would reduce access to credit for consumers, particularly subprime borrowers who rely on affordable small-dollar loans, credit cards, and other short-term financing products to make ends meet.”
According to America’s Credit Unions, the letter notes Colorado’s law runs counter to Congressional intent when enacting DIDMCA, which was to prevent discrimination against state-chartered, insured financial institutions, and “the legislative history further confirms that Section 525 of DIDMCA was intended to permit states to reimpose usury limits only on loans made within the state by that state’s own state-chartered institutions—not to impose those limits extraterritorially on institutions chartered in other states.“
DCUC: ‘This Corrects Course’
“Senator Moreno’s and Congressman Davidson’s American Lending Fairness Act is about restoring legal certainty and competitive parity,” Jason Stverak, chief advocacy officer of the Defense Credit Union Council (DCUC), said in a statement. “For decades, interest rate exportation has provided a stable, predictable framework that allows credit unions to serve members across state lines—especially military families who move often due to permanent change-of-station orders. The Tenth Circuit’s ruling introduced unnecessary fragmentation into that framework. This legislation corrects that course.”
