WASHINGTON–The Senate has passed S.J.Res.18, which would nullify the CFPB’s overdraft rule. By a 52-48 vote, the resolution would prevent a CFPB rule that caps overdraft fees at $5 for financial institutions with more than $10 billion in assets from going into effect via the Congressional Review Act.

A House committee had earlier passes a similar resolution, but it still must go to the full House and pass, and then get the president’s signature. The legislation has the support of the credit union trade associations, as do several other pieces of legislation that have advanced in different ways

The move in Congress comes in the same week a new analysis was released by the Financial Health Network that found credit union members have been paying more in OD/NSF fees than had previously been estimated. According to the revised analysis, in 2024 consumers of “very large financial institutions,” defined as banks and credit unions with over $10 billion in assets, paid $5.2 billion in overdraft fees. Of that amount, credit union members paid an estimated $735 million, or 14%. 

The Financial Health Network isaid it found that, overall, Americans paid $11.8 billion dollars in overdraft and NSF fees in 2023 and $12.1 billion in 2024, compared with a previous 2023 estimate of $7.9 billion, the organization said, adding it was able to arrive at the figures after NCUA began collecting the OD/NSF figures for CUs over $1 billion in assets during 2024.  The CU Daily has full coverage of those findings here.

Trade Group Support

Meanwhile, credit union trade groups have expressed their support for the legislation that rolls back the CFPB OD/NSF cap.

“We thank Chairman Tim Scott for his leadership in bringing this critical reform to the CFPB’s flawed overdraft fee rule,” DCUC President and CEO Anthony Hernandez said in a statement. “This resolution affirms that when regulatory agencies exceed their authority or impose policies that harm consumers, Congress must intervene. Chairman Scott’s leadership has ensured that the perspectives of America’s hardworking families and community-based financial institutions are heard amongst the national conversation on financial fairness and accessibility.”

In a statement, America’s Credit Unions also had praise for the Senate passage of the resolution.

“America’s Credit Unions supports using all tools available to pull back any overreach of the CFPB’s statutory authority,” America’s Credit Unions President/CEO Jim Nussle said in a statement “The bureau’s overdraft rule is a solution in search of a problem, an attempt to eliminate a product deemed ‘unsuitable’ by Washington bureaucrats but vital to many credit unions’ members. Credit unions are the original consumer protectors that are serving forgotten communities across the country. We appreciate the Senate’s action to stop regulatory overreach and preserve necessary financial products and services for hard working Americans.”

As the CU Daily reported earlier, DCUC also sent a letter to Scott expressing support for his leadership in introducing a Congressional Review Act (CRA) resolution to overturn the CFPB’s rule and his efforts to bring the measure before the Senate. 

DCUC notted it has been voicing its opposition to the CFPB rule since it was first introduced, sending a letter to the Senate Banking, Housing, and Urban Affairs Committee, both Houses of Congress, and former CFPB Director Rohit Chopra. 

‘Blatant Overregulation’

“We respectfully request that you oppose the CFPB’s overdraft fee rule and utilize the Congressional Review Act to repeal this blatant overregulation and to ensure that future regulations are appropriately targeted and balanced to preserve access to financial services for all Americans,” DCUC wrote to the congressional committee leaders. “The imposition of a $5 cap on overdraft fees disregards the operational realities of financial institutions and the costs incurred in providing overdraft protection services. This policy not only jeopardizes the sustainability of these services but also shifts the financial burden back onto consumers in unintended ways. It risks creating a perverse incentive for individuals to overdraft their accounts more frequently, undermining the financial responsibility that overdraft policies are designed to encourage. 

‘Even Worse’

According to DCUC, what’s even worse is the “without any safety net that would allow consumers to keep payments on time, this rule risks more decline rates due to non-sufficient funds. These can result in higher penalties from non-bank entities such as landlords, utility companies, and even municipalities. Instead of addressing cases of actual abuse, this sweeping regulation penalizes the entire financial sector indiscriminately. Such an approach fails to distinguish between responsible institutions, such as credit unions, and bad actors who may engage in exploitative practices. 

“By forcing credit unions to absorb the costs of overdraft protection, this rule jeopardizes their ability to reinvest in their communities and provide low-cost financial services to their members—many of whom are active-duty military personnel, veterans, and their families,” DCUC added, saying it is concerned the rule will have the opposite of its intended effect. 

The Supporters

The legislation has gained support from Sens.

Mike Rounds [R-SD]; Bill Hagerty [R-TN]; Mike Crapo [R-ID]; Thomas Tillis (R-NC); Kevin Cramer (R-ND); Katie Boyd Britt (R-AL); Jerry Moran (R-KS); James Risch (R-ID); John Boozman (R-AR); Roger Wicker (R-MS); Cynthia Lummis (R-WY); Pete Ricketts (R-NE); Bernie Moreno (R-OH); Mike Lee (R-UT); Steve Daines (R-MT); and John Thune (R-SD).

VA Home Loan Awareness Act

Separately, the DCUC commended Rep. Monica De La Cruz (TX-15) for her leadership in reintroducing the VA Home Loan Awareness Act. 

“The legislation will incorporate an impactful disclosure on the Uniform Residential Loan Application (URLA) to direct applicants to consult their lender for more information about the VA Home Loan Program, which has benefits that can include zero down payments, no mortgage insurance, and often lower interest rates compared to conventional FHA loans,” DCUC said of the legislation. 

 The legislation was introduced alongside Rep. Al Green (D-TX). Original co-sponsors of the legislation include: Rep. August Pfluger (R-TX), Rep. Mike Lawler (R-NY), Rep. Lance Gooden (R-TX), Rep. Brian Fitzpatrick (R-PA), Rep. Dan Crenshaw (R-TX), Rep. Brittany Pettersen (D-CO), Rep. Joyce Beatty (D-OH), Rep. Josh Gottheimer (D-NJ), Rep. Josh Harder (D-CA), Rep. Deborah Ross (D-NC).

‘Forever Grateful’
In addition to DCUC,  the Veterans Association of Real Estate Professionals (VAREP) has expressed strong support. 
“We thank Congresswoman Monica De La Cruz for her leadership in reintroducing the ‘VA Home Loan Awareness Act’ to address the housing challenges faced by military families,” said DCUC’s Hernandez in a statement. “The affordable housing crisis continues to place financial strain on service members and veterans, and policy solutions like this are essential to ensuring they have access to stable and affordable housing. Defense credit unions remain committed to supporting military families through innovative mortgage products and financial counseling, but legislative action is critical to expanding the overall impact we can offer to these communities. We look forward to assisting congressional leadership in their efforts to strengthen VA home loan programs and improve housing affordability for those who serve our nation.” 

Reform Urged

DCUC noted that in  recent letters it has urged Congressional committees for necessary reform to the current VA Home Loan program to enhance and ensure improved housing access and resources for the nation’s military and veteran communities.

In January, DCUC said it welcomed the introduction of the Senate companion bill sponsored by senators Tim Sheehy’s (R-MT) and Chris Van Hollen’s (D-MD), the VA Home Loan Awareness Act of 2025. The bill quickly garnered bipartisan support from senators Ted Cruz (R-TX), Raphael Warnock (D-GA), Ted Budd (R-NC), Sheldon Whitehouse (D-RI), John Boozman (R-AR), Bernie Sanders (I-VT), Kevin Cramer (R-ND), Peter Welch (D-VT), Eric Schmitt (R-MO), John Kennedy (R-LA), Thom Tillis (R-NC), Bernie Moreno (R-OH), Jacky Rosen (D-NV), and Amy Klobuchar (D-MN).

‘Streamline Process’

 DCUC noted it has called on Congress to require that the Department of Housing and Urban Development (HUD), in collaboration with the Department of Veterans Affairs, address these challenges by streamlining the appraisal process and launching initiatives to educate sellers and real estate professionals about the benefits of VA loans, especially in current housing markets with high-interest rates.