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 "The Fair Credit Reporting Act's Limited Preemption of State Laws".
- Bill Number
- S.J.Res. 129
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-05-13: Motion to proceed to consideration of measure rejected in Senate by Voice Vote. (consideration: CR S2271)
- Last Updated
- 2026-05-15T17:06:03Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 129) uses the Congressional Review Act (CRA)—a law allowing Congress to overturn certain recent federal agency rules—to block a Bureau of Consumer Financial Protection (CFPB) action. Specifically, it disapproves the CFPB's 2025 decision to withdraw a 2022 rule interpreting the Fair Credit Reporting Act's (FCRA) limited preemption of state laws. Preemption means federal rules overriding state rules; "limited preemption" under FCRA allows states to impose stricter consumer protections than federal standards.
By nullifying the withdrawal, the resolution effectively preserves the 2022 CFPB rule (87 Fed. Reg. 41042).
Key Provisions
- Disapproves the CFPB rule published May 12, 2025 (90 Fed. Reg. 20084), which withdrew the 2022 FCRA preemption rule.
- Declares the withdrawal rule to have no force or effect, reinstating the original 2022 rule.
- Introduced by Sen. Cortez Masto on March 17, 2026; committee discharged by petition under CRA procedures and placed on Senate calendar April 27, 2026.
Significant Changes to Existing Law
- No direct changes to statutes; invokes CRA to reverse an agency action.
- Under CRA, prevents CFPB from issuing a "substantially similar" withdrawal rule for 10 years without new congressional approval.
- Restores the 2022 CFPB interpretation of FCRA Section 1681t, which limits federal preemption and allows certain state laws to exceed federal FCRA standards.
Potential Impacts
- Government agencies: Limits CFPB's flexibility to revise its own rules, reinforcing congressional oversight of consumer financial regulations.
- Citizens/consumers: Maintains broader state-level protections in credit reporting (e.g., on accuracy, disputes, or medical debt reporting), potentially benefiting consumers in states with stronger laws.
- Businesses: Credit reporting agencies (e.g., Equifax, TransUnion) face continued compliance with varying state rules rather than uniform federal standards.
- No direct international relations impact.
Main Stakeholders Affected
- CFPB: Loses authority over the withdrawn rule.
- States: Retain ability to enforce stricter FCRA-related laws.
- Consumers: Potentially gain from preserved state protections.
- Financial industry (credit bureaus, lenders): Must navigate a patchwork of state and federal rules.
- Congress: Demonstrates use of CRA to check executive branch agencies.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens CRA as a tool for rapid congressional reversal of agency rules (simple majority vote, no presidential signature needed if passed by both chambers).
- Constitutional: Balances federalism by preserving state regulatory power under FCRA; no direct constitutional challenges noted.
- Political: Highlights partisan or bipartisan efforts to influence CFPB rulemaking (introduced by a Democrat but using fast-track CRA petition); reflects tensions over federal vs. state consumer protections in the 119th Congress.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Cortez Masto, Catherine [D-NV]
Recent Actions
- 2026-05-13: Motion to proceed to consideration of measure rejected in Senate by Voice Vote. (consideration: CR S2271)
- 2026-04-27: Placed on Senate Legislative Calendar under General Orders. Calendar No. 385.
- 2026-04-27: Senate Committee on Banking, Housing, and Urban Affairs discharged, by petition, pursuant to 5 U.S.C. 802(c).
- 2026-04-27: Senate Committee on Banking, Housing, and Urban Affairs discharged, by petition, pursuant to 5 U.S.C. 802(c).
- 2026-03-17: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-03-17: Introduced in Senate
Bill Versions
- 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 The Fair Credit Reporting Act's Limited Preemption of State Laws. — issued 2026-03-17 — PDF (2 pages)
- 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 The Fair Credit Reporting Act's Limited Preemption of State Laws. — issued 2026-04-27 — PDF (4 pages)