SPRINGFIELD, Ill.–Illinois Gov. JB Pritzker has signed House Bill 742 into law, which pushes back by one year until July 1, 2026 the effective date of the Interchange Fee Prohibition Act by one year to July 1, 2026.
As the CU Daily reported, credit unions in the state had strongly opposed the legislation, which removed interchange fees on tax and tip portions of transactions. The Illinois league said the delay brings “much-needed relief to credit unions, local banks, Main Street businesses, and consumers who would otherwise face significant disruption under the original law.”
“This extension is an important step toward protecting access, affordability, and operational stability for credit unions and the communities they serve,” Libby Calderone, president and
CEO of ICUL, said in a statement. “We appreciate the support of Gov. Pritzker and the many credit union advocates who helped make this possible.”
Litigation Pursued
ICUL noted it continues to pursue legal relief from this ill-conceived law, alongside co-plaintiffs that include Americas Credit Unions, the American Bankers Association, and the Illinois Bankers Association. Following a motion for summary judgement filed by the plaintiffs and cross-motion filed by the Illinois Attorney General, the parties are awaiting the scheduling of oral arguments in the Northern District Federal Court of Illinois.
DCUC Issues Statement
“We thank Governor Pritzker and his administration for their attention to this critical issue. DCUC strongly urges the Illinois General Assembly to fully repeal this misguided law. Protecting the integrity of the payments system and ensuring fair, consistent treatment for all financial institutions is essential for maintaining consumer trust and economic stability,” Jason Stverak, DCUC chief advocacy officer, said in a statement. “Delaying implementation is a step in the right direction—and we will continue to advocate for policies at the state level that support local financial institutions, military families, and the communities they serve.”
