GOP Pushes Legislation to Repeal Overdraft Fee Cap, Benefiting Banks

The proposed bill would overturn a Biden-era rule limiting overdraft fees to $5, potentially costing consumers billions annually.

Republican lawmakers in the House and Senate have introduced a resolution to repeal a Consumer Financial Protection Bureau (CFPB) rule capping overdraft fees at $5.
The Biden administration's rule, set to take effect in October 2025, aims to save consumers approximately $5 billion annually by reducing excessive bank fees.
The Congressional Review Act is being used to expedite the repeal process, allowing Congress to nullify the rule with a simple majority vote and presidential approval.
Supporters of the repeal argue the rule limits financial institutions' ability to provide services, while critics say it disproportionately harms low-income Americans who are most affected by overdraft fees.
The move aligns with the Trump administration's broader deregulatory agenda and its efforts to weaken the CFPB, a frequent target of Republican criticism.