Scott’s Overdraft CRA Passes House, Heads to President Trump’s Desk
The Biden-era rule would have led to reduced access to credit and important financial services for hardworking Americans.
Washington, D.C. – Chairman Tim Scott’s (R-S.C.) Congressional Review Act (CRA) resolution to overturn the Biden Consumer Financial Protection Bureau’s (CFPB) final rule on overdraft fees passed the U.S. House of Representatives today. The CRA resolution, which passed the Senate last month, now heads to President Trump’s desk.
“As I’ve said repeatedly, the Biden-era CFPB overdraft rule would harm the very consumers it’s supposed to protect and limit access to credit and important financial services for hardworking Americans. I’m grateful to House Financial Services Chairman French Hill for his leadership on this effort in the House, and I look forward to President Trump signing this resolution and overturning this misguided rule once and for all,” said Chairman Scott.
BACKGROUND:
On November 17, 2024, Chairman Scott sent a letter to the White House calling on the Biden administration’s financial and housing regulators to cease all rulemaking activity. At a December 2024 committee hearing, Chairman Scott called out CFPB Director Rohit Chopra for ignoring his demands to pause rulemaking and pressing forward with an aggressive agenda. On December 12, 2024, after the Consumer Financial Protection Bureau (CFPB) finalized the overdraft rule, Chairman Scott released a statement opposing the rule and Director Chopra’s midnight rulemaking.
On February 13, 2025, Chairman Scott and House Financial Services Committee Chairman French Hill (R-Ark.) introduced Congressional Review Act (CRA) resolutions to overturn the rule. Key stakeholders, including the Consumer Bankers Association, the Independent Community Bankers of America, the American Bankers Association, America's Credit Unions, and the Bank Policy Institute, voiced their support for the effort.
On March 27, 2025, the Senate passed Chairman Scott’s resolution. Ahead of the vote, Chairman Scott delivered remarks on the Senate floor emphasizing that the rule would have resulted in more unbanked Americans and fewer options for consumers.
As the Wall Street Journal Editorial Board noted, “Sen. Scott cited a Federal Reserve Bank of New York study that found such caps ‘hinder financial inclusion’ because ‘banks reduce overdraft coverage and deposit supply.’ The rule would cause banks to drop overdraft protection and raise other fees, including on checking accounts. Lower-income folks would lose access to the banking system and perhaps have to pay more to get payday loans.”
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