WASHINGTON–President Trump has signed a Congressional Review Act resolution that overturns the CFPB’s overdraft rule, which was to go into effect on Oct. 1

Credit unions are welcoming the move.

That rule, enacted in December of 2024 under the Biden Administration, would have capped overdrafts at $5 per item for institutions of $10 billion or more in assets. At the time it issued the rule the CFPB  estimated it would  add up to $5 billion in annual overdraft fee savings to consumers, or $225 per household that pays overdraft fees.

In April both the House and the Senate had passed resolutions to overturn the CFPB rule. Financial groups had also filed suit against the Bureau over the new cap.  

America’s Credit Unions is ‘Appreciative’

“America’s Credit Unions is appreciative that credit unions will be able to continue to offer responsible overdraft programs. With President Trump’s signature, the overly broad CFPB rule is now nullified,” America’s Credit Unions’ President and CEO Jim Nussle said in a statement. “Credit unions provide their members with solutions to challenging financial problems every day and overdraft protection is one of those valuable solutions that credit union members can benefit from.”