U.S. Capitol.
Sens. Ted Cruz (R-Texas) and Katie Britt (R-Ala.) have introduced legislation to raise and index to inflation the $10 billion asset threshold that triggers debit interchange fee caps under the Durbin Amendment, arguing the limit has become outdated and now captures more community-based institutions than Congress originally intended.
The Community Bank Relief Act would amend the Electronic Fund Transfer Act to require the Federal Reserve to adjust the asset threshold for inflation beginning July 1, 2026, and annually thereafter based on the Consumer Price Index. It also directs an initial "catch-up" adjustment reflecting inflation since October 2009, when the original threshold was set.
"When Dodd-Frank passed, roughly 80 banks exceeded the $10 billion threshold. Today, roughly 130 banks have exceeded it," Cruz said, arguing the Durbin Amendment "was not designed for the current economic and regulatory reality." Britt called the bill a "commonsense" update to prevent smaller institutions from being swept into rules meant for the largest banks.
Companion legislation has been introduced in the House by Rep. Andy Barr (R-Ky.), who said the measure would help community institutions better compete.
America's Credit Unions endorsed the bill, with President/CEO Scott Simpson saying indexing the threshold would "restore fairness for community-based credit unions" whose interchange revenue supports lower fees, fraud prevention and member services. However, Simpson added that "the only real long-term solution is full repeal of the Durbin Amendment," arguing government price controls have distorted the payments market and failed to deliver promised consumer savings.
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