S. 3889 — American Lending Fairness Act of 2026

This section amends federal loan interest rate provisions to permit a state to exempt state-chartered insured depository institutions and credit unions from otherwise applicable federal preemption of state usury laws. Specifically, it (1) adds subsection (c) to section 27 of the Federal Deposit Insurance Act (12 U.S.C. 1831d), providing that if a state adopts a law or certifies voter approval of an explicit opt-out provision, subsection (a)—which permits such institutions to charge rates allowed by home state law notwithstanding borrower state usury limits—does not apply to loans (or commitments) by state-chartered institutions after that date; and (2) adds parallel paragraph (3) to section 205(g) of the Federal Credit Union Act (12 U.S.C. 1785(g)). (As background, these preempted provisions establish a home state rule for interstate lending rates by federally insured institutions.) The section further repeals section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (12 U.S.C. 1730g note)—which previously authorized similar state opt-outs—and applies the amendments retroactively to any state opt-outs adopted under that section.