119-SJRES-156 Journalist Public Summary
A Senate resolution would use the Congressional Review Act to undo the CFPB’s May 12, 2025 withdrawal of its Regulation Z guidance on paycheck‑advance/earned‑wage products, likely restoring the earlier interpretation that treats many of these advances as credit requiring Truth‑in‑Lending disclosures; consumer advocates back the move while fintech and business groups oppose it; it’s been introduced and could reach the floor under CRA fast‑track rules. (govinfo.gov)
Headline Summary
Senate Joint Resolution 156 would overturn the Consumer Financial Protection Bureau’s 2025 move to withdraw its pay‑advance (earned‑wage) guidance, likely restoring the earlier interpretation that treats many of these advances as credit subject to Truth‑in‑Lending rules. (govinfo.gov)
What It Does
- The resolution uses the Congressional Review Act (CRA) to nullify the CFPB’s May 12, 2025 withdrawal notice concerning “Truth in Lending (Regulation Z); Consumer Credit Offered to Borrowers in Advance of Expected Receipt of Compensation for Work.” If enacted, the withdrawal would have no legal effect. (govinfo.gov)
- Because CRA disapproval of a repeal/withdrawal generally undoes that repeal, the earlier interpretation would likely spring back—i.e., many paycheck‑advance/earned‑wage products would again be treated as credit requiring Truth‑in‑Lending disclosures of total cost, including fees or “tips.” (congress.gov)
Why It Matters
- For workers who use these products, the change could mean clearer price tags and standard disclosures before they borrow; for providers and employers offering these advances, it could mean renewed compliance duties under TILA/Reg Z. (federalregister.gov)
Who’s For It
- Sponsor: Sen. Jeff Merkley (D‑OR). (govinfo.gov)
- Consumer advocates who supported the underlying interpretation (e.g., National Consumer Law Center, Center for Responsible Lending, Consumer Federation of America) argue workers should get full Truth‑in‑Lending disclosures and that fees/tips count toward the cost of credit. (nclc.org)
Who’s Against It
- Fintech and industry groups that backed the withdrawal or opposed the interpretation—such as the American Fintech Council—say many earned‑wage products aren’t “credit” and fear rules could limit access. (fintechcouncil.org)
- Business associations (e.g., U.S. Chamber of Commerce) and banking groups (e.g., ICBA) criticized the interpretive approach and/or sought narrower definitions or a full rulemaking instead. (uschamber.com)
What’s Next
- Status: Introduced March 26, 2026. Under the CRA, a joint resolution can be discharged from committee and brought to the Senate floor via petition and then considered under expedited procedures. If both chambers pass it and the President signs it, the CFPB’s 2025 withdrawal is void and the prior interpretation likely returns. Check the Senate’s daily General Orders for floor placement and scheduling. (govinfo.gov)
Discussion