On May 9, the U.S. Senate Committee on Banking, Housing, and Urban Affairs announced that President Trump signed into law Chairman Tim Scott’s (R-SC) Congressional Review Act (CRA) resolution, effectively overturning the Biden-era Consumer Financial Protection Bureau (CFPB) rule on overdraft fees. Chairman Scott, who spearheaded the effort, emphasized that the rule would have imposed detrimental price controls on overdraft services, potentially leading to more unbanked individuals and fewer consumer options.
The announcement noted that in November 2024, Chairman Scott had urged the Biden administration to halt all rulemaking activities in preparation for the change in administration. Nevertheless, the CFPB finalized the overdraft rule in December 2024, prompting Scott to introduce CRA resolutions alongside House Financial Services Committee Chairman French Hill (R-AR). These resolutions garnered support from key stakeholders, including the American Bankers Association (ABA), which challenged the rule in court. The Senate passed the resolution on March 27, 2025, followed by the House on April 9, 2025.
With President Trump’s signature, the ABA announced it would drop its lawsuit against the CFPB, noting that the repeal preserves access to vital financial services for Americans.
