House Votes to Overturn Overdraft Fee Cap, Sending Resolution to Trump

The Biden-era rule limiting overdraft fees to $5, designed to save consumers billions annually, now awaits President Trump's decision.

The U.S. House of Representatives voted 217-211 to repeal the CFPB's rule capping overdraft fees at $5, following the Senate's narrow approval in March.
The resolution now heads to President Donald Trump, who is expected to sign it into law, finalizing the repeal of the regulation set to take effect in October 2025.
Proponents of the repeal argue that the fee cap could lead to reduced access to overdraft protection and potentially push consumers toward riskier, unregulated lenders.
Consumer advocates and state attorneys general, including New York AG Letitia James, have opposed the repeal, emphasizing the rule's potential to save households $225 annually and protect vulnerable consumers.
Bank overdraft fees currently generate $8 billion annually for financial institutions, with critics describing them as exploitative charges disproportionately affecting low-income customers.