Banks Win Big. Americans Lose Big.
In a move that raises costs for working families, Western New York Republicans Nick Langworthy (R-NY23) and Claudia Tenney (R-NY24) cast votes in the House of Representatives to let banks hike overdraft fees. Both Langworthy and Tenney voted to overturn the Biden administration’s $5 cap on bank overdraft fees. This allows banks to resume charging $35 or more per overdraft. It means that there is no cap on the overdraft fees that banks can legally charge.
This legislation hands a victory to big banks while hurting everyday people who can least afford high bank fees.
House GOP Axes Overdraft Fee Cap
The House approved this rollback on a 217–211 vote. Every Democrat opposed raising bank overdraft fees. Every Republican voted in favor of raising bank overdraft fees except for Rep. Ryan Mackenzie of Pennsylvania. He was the lone Republican who broke ranks to keep the $5 fee cap. Langworthy (NY-23) and Tenney (NY-24) sided with the rest of the GOP and against their constituents.
The Biden-era rule they struck down was set to cap most overdraft fees at $5. The Consumer Financial Protection Bureau (CFPB) estimated that the $5 cap would save Americans about $5 billion per year, or around $225 annually per household.
By killing this cap, Langworthy and Tenney ensure banks can charge $35 or more for every overdraft. Under the finalized rule, banks can charge a flat overdraft fee of $5. Or they can charge a fee that covers their costs and losses. Or they can charge any fee as long as they disclose the terms – annual percentage rate / APR.
Banks rake in roughly $8 billion a year from these charges. The money comes mainly from people living paycheck to paycheck. About 70% of overdrafts are charged to customers with average account balances between $237 and $439. Overdraft fees are almost always paid by those least able to afford them.
A similar bill has passed the Senate, and President Trump will now sign it into law.
Republican Pattern: Higher Costs from Fees to Tariffs
Langworthy and Tenney’s votes fit a broader Trump-era GOP pattern of shifting costs onto working people. Whether it’s letting banks pile on fees or slapping massive new import taxes, the result is the same: everyday Americans pay more.
This playbook was on full display during Trump’s first term when his tariffs drove up the price of goods. Even more so during Trump’s second term. His new massive tariffs are estimated to add $2-3000 more in the cost of goods for each family. And that doesn’t include the effect of Trump’s tariffs on new car prices. Those are expected to increase by $5-10,000 per car.
From bank fees to tariffs, the Republican economic agenda continues to hit consumers directly in the wallet. Congress should be finding ways to ease the financial burden on Americans, not doing favors for banks and big business to increase it.
Ultimately, Langworthy and Tenney made a clear choice. They decided to support the banks instead of their constituents.
Their votes to overturn the overdraft fee cap speak volumes. People across NY-23 and NY-24 are the ones left to pay the price of their callous disregard. Langworthy and Tenney hope that voters won’t notice.