The Association of Military Banks of America (AMBA) joined a coalition of leading banking, credit union, fintech, and financial services organizations in supporting the bipartisan American Lending Fairness Act of 2026 (ALFA). In a joint letter to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services, the coalition urged Congress to pass the legislation, which would clarify the limited scope of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA) and preserve longstanding parity between federally chartered and state-chartered financial institutions. The coalition emphasized that ALFA would reaffirm Congress’s original intent by ensuring state-chartered institutions can continue to lend nationwide under the laws of their home states.
The letter also highlighted growing legal uncertainty resulting from recent state actions in Colorado and Oregon, which have sought to expand their authority over loans made by out-of-state institutions. Without congressional action, we believe that differing court decisions could create a patchwork of state lending laws that undermines the dual banking system and complicates lending across state lines. AMBA and the other signatories contend that passage of ALFA would provide regulatory certainty, maintain a level playing field for all lending institutions, and preserve consistent access to credit for consumers and businesses nationwide.
This is of particular importance for AMBA members and the military community they serve. For military servicemembers and their families, who frequently relocate across state lines, preserving consistent application of federal banking law promotes uninterrupted access to responsible financial services while maintaining all existing federal consumer protections, including the Military Lending Act and the Servicemembers Civil Relief Act.
Click here to read the joint letter