The American Lending Fairness Act of 2026 aims to clarify and restore the ability of states to set their own interest rate rules for loans made by banks and credit unions that they charter. This law addresses concerns about federal preemption, which previously limited states' authority to regulate interest rates on loans from their own financial institutions. One of the main objectives of this legislation is to allow states to opt out of federal rules regarding interest rates specifically for loans made by state-chartered banks and credit unions.