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 "Truth in Lending (Regulation Z); Consumer Credit Offered to Borrowers in Advance of Expected Receipt of Compensation for Work".
- Bill Number
- S.J.Res. 156
- 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 S2270)
- Last Updated
- 2026-05-14T18:27:18Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 156) uses the Congressional Review Act (a law allowing Congress to quickly overturn certain federal agency rules) to block the Bureau of Consumer Financial Protection (CFPB) from withdrawing a consumer protection rule. The original rule aimed to regulate "earned wage access" products—loans or advances given to workers before their payday, treated as consumer credit under the Truth in Lending Act (Regulation Z).
Key Provisions
- Disapproval of withdrawal: Congress explicitly disapproves the CFPB's May 12, 2025, rule (90 Fed. Reg. 20084) that withdrew the January 15, 2025, rule (90 Fed. Reg. 3622).
- No force or effect: The withdrawal rule is nullified, keeping the original consumer credit rule in place.
Significant Changes to Existing Law
- Reverses the CFPB's decision to scrap the 2025 rule, effectively reinstating requirements for lenders offering pre-payday advances to disclose terms like fees and interest as consumer credit.
- No new laws are created; it preserves the status quo of the original rule against the agency's attempt to remove it.
Potential Impacts
- On government agencies: Limits CFPB's ability to retract its own rules, potentially increasing congressional oversight of financial regulators.
- On citizens: Protects borrowers (e.g., gig workers or low-wage employees) by maintaining disclosure rules for advance wage products, which could reduce hidden fees but might limit product availability if lenders face stricter compliance.
- On businesses: Affects fintech companies and employers offering wage advances, requiring ongoing compliance with lending disclosures.
- No direct impact on international relations.
Main Stakeholders Affected
- CFPB: Loses authority over the withdrawn rule.
- Consumers/borrowers: Gain continued protections on pre-payday credit.
- Lenders and fintech firms: Must adhere to the original rule's requirements.
- Congress (especially Senate Banking Committee): Demonstrates use of oversight tools.
- Introduced by Sen. Merkley (D-OR): Highlights bipartisan or Democratic interest in consumer protections.
Notable Legal, Constitutional, or Political Implications
- Legal: Invokes the Congressional Review Act (5 U.S.C. ch. 8), a procedural tool for fast-track disapproval without presidential signature if passed by both chambers; bypasses standard committee process (noted via petition under 5 U.S.C. 802(c)).
- Constitutional: Reinforces Congress's oversight of executive agencies under Article I, checking administrative rulemaking.
- Political: Signals tensions between Congress and CFPB on consumer finance rules; could set precedent for using CRA to restore (rather than just block) regulations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-05-13: Motion to proceed to consideration of measure rejected in Senate by Voice Vote. (consideration: CR S2270)
- 2026-04-27: Placed on Senate Legislative Calendar under General Orders. Calendar No. 400.
- 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).
- 2026-03-26: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-03-26: 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 Truth in Lending (Regulation Z); Consumer Credit Offered to Borrowers in Advance of Expected Receipt of Compensation for Work. — issued 2026-03-26 — 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 Truth in Lending (Regulation Z); Consumer Credit Offered to Borrowers in Advance of Expected Receipt of Compensation for Work. — issued 2026-04-27 — PDF (4 pages)