US Federal Senate Bill SJR128

US Federal 2025-2026 Regular Session

• Introduced: 5/13/26
• Introduced: 3/17/26
• Refer: 3/17/26

Caption

A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "Consumer Financial Protection Circular 2024-03: Unlawful and Unenforceable Contract Terms and Conditions".

Summary

S.J. Res. 128 is a congressional disapproval resolution under the Congressional Review Act. It would overturn a Bureau of Consumer Financial Protection rule that withdrew CFPB Circular 2024-03, a guidance document addressing “unlawful and unenforceable” contract terms and conditions. If enacted, the resolution would nullify the withdrawal rule and prevent it from taking effect, thereby leaving the underlying CFPB circular in place rather than allowing the agency’s withdrawal to stand. The measure does not create a new regulatory standard on its own; instead, it uses Congress’s CRA authority to block an agency action. Its practical effect would be on federal consumer financial regulation, especially the CFPB’s ability to retract guidance concerning contract clauses that may be invalid or unenforceable under consumer protection law. The bill is aimed at preserving the agency’s prior position on problematic contract terms and conditions.

Impact

If enacted, the resolution would have no direct effect on state statutes, but it would affect federal administrative law by voiding the CFPB’s withdrawal rule and restoring the prior circular’s operative status. That would influence regulated entities such as lenders, servicers, financial firms, and other businesses that use consumer contracts, as well as consumers who may be protected by the CFPB’s guidance on unlawful or unenforceable terms. The bill operates through the Congressional Review Act, so its legal impact is to disapprove a federal agency rule rather than amend the U.S. Code.

Sentiment

The available history suggests the bill is controversial and has not advanced smoothly. It was discharged by petition and later faced a motion to proceed that was rejected in the Senate by voice vote, indicating insufficient support to move forward at that stage. The limited record does not include committee debate or recorded votes on the merits, but the procedural setback suggests divided views over whether Congress should block the CFPB’s withdrawal of the circular.

Contention

The main point of contention is whether the CFPB should be allowed to withdraw its circular on unlawful and unenforceable contract terms, or whether Congress should intervene to keep that guidance in force. Supporters are likely to view the circular as an important consumer protection tool that helps curb abusive contract language, while opponents may argue that the agency should have discretion to revise or withdraw guidance and that Congress should not lock in a particular regulatory position. The dispute centers on federal consumer protection policy, agency authority, and the use of the Congressional Review Act to override administrative action.