Community Bank Relief Act (S. 3849)

Summary

The Community Bank Relief Act is a bill introduced in the U.S. Senate in February 2026. The main purpose of the bill is to amend the Electronic Fund Transfer Act (EFTA) to adjust certain fee thresholds for inflation.

Key Provisions

• Inflation Adjustments: The bill requires the Federal Reserve Board to adjust the fee thresholds established in EFTA Section 921(a)(6) for inflation on an annual basis, starting in July 2026.
• Initial Adjustment: Prior to the first annual adjustment, the Board must adjust the fee thresholds based on the percentage change in the Consumer Price Index from October 2009 to October 2025.

Impact

• Affected Entities: This bill would impact financial institutions, particularly community banks, that are subject to the EFTA's fee restrictions on payment card transactions.
• Purpose: The bill aims to provide regulatory relief to community banks by ensuring the fee thresholds keep pace with inflation, rather than becoming increasingly restrictive over time.

Timeline

• Introduced: February 11, 2026 in the U.S. Senate
• Committee: Referred to the Senate Committee on Banking, Housing, and Urban Affairs

Overall, the Community Bank Relief Act is intended to help community banks manage payment card transaction fees by requiring the Federal Reserve to adjust key thresholds in the EFTA to account for inflation on an annual basis.