US Federal Senate Bill SJR18

US Federal 2025-2026 Regular Session

• Introduced: 2/13/25
• Refer: 2/13/25
• Engrossed: 3/31/25
• Enrolled: 5/5/25
• Passed: 5/9/25
• Chaptered: 5/9/25

Caption

A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".

Summary

SJR 18 is a congressional joint resolution that disapproves a final rule issued by the Consumer Financial Protection Bureau (CFPB) titled "Overdraft Lending: Very Large Financial Institutions." By using the Congressional Review Act process, the resolution nullifies the CFPB rule and prevents it from taking effect. The underlying rule, published in the Federal Register on December 30, 2024, would have regulated overdraft lending practices at very large financial institutions. The practical effect of the resolution is to remove the CFPB overdraft rule from federal law, leaving the prior regulatory framework in place. Because the resolution states that the rule shall have no force or effect, banks and other very large financial institutions are not subject to the specific overdraft-lending requirements that the CFPB had adopted in that rule. The measure does not create a new regulatory regime; instead, it blocks an existing federal consumer-finance regulation. The bill appears to have been supported by a narrow majority in both chambers, with close votes in the Senate and House. The vote totals suggest a partisan divide, with supporters favoring repeal of the CFPB rule and opponents favoring retention of the consumer protection standards. The final enactment into Public Law No. 119-10 indicates the resolution ultimately passed both chambers and was signed into law. The main point of contention is the balance between consumer protection and regulatory burden on financial institutions. Supporters likely viewed the CFPB rule as overly restrictive or burdensome for large banks offering overdraft services, while opponents likely argued that the rule would have protected consumers from costly overdraft fees and harmful lending practices. No committee transcript was provided, so the available record shows the dispute primarily through the close roll-call votes and the subject of the disapproved rule.

Impact

This joint resolution directly affects federal consumer financial regulation by invalidating the CFPB's overdraft-lending rule for very large financial institutions. It removes the rule from legal effect nationwide and preserves the preexisting regulatory status quo for banks and other covered institutions. The resolution does not amend state statutes, but it changes the federal rules governing overdraft practices and the compliance obligations of affected financial institutions.

Sentiment

The voting history suggests a closely divided and politically charged debate, with support sufficient to pass the measure but opposition remaining substantial in both chambers. The narrow margins indicate that lawmakers were split over whether the CFPB rule was a needed consumer safeguard or an unnecessary regulatory burden. The absence of committee transcripts limits direct evidence of floor arguments, but the final enactment shows the resolution had enough support to become law despite notable resistance.

Contention

The central contention was whether the CFPB should be allowed to impose new overdraft-lending restrictions on very large financial institutions. Supporters of the resolution likely argued that the rule would increase compliance costs, limit bank flexibility, or interfere with consumer banking products, while opponents likely argued that it would curb excessive overdraft fees and protect consumers from predatory practices. The close Senate and House votes reflect this split, with consumer advocates and regulatory supporters on one side and banking-industry or deregulatory supporters on the other.