The NCUA interim final rule directly addresses federal preemption of state interchange fee restrictions for credit unions, establishing regulatory authority over interchange fee charging.
The rule affects credit union fee-charging activities and payment system stability, touching on broader payment infrastructure governance and federal regulatory authority.
Specialism
The NCUA interim final rule directly addresses interchange fee authority and preempts state-level fee restrictions, which is core surcharging regulation governing permissible fee structures in payment systems.
Low confidence — requires human review. The update involves federal preemption of state law and regulatory authority conflict, but does not clearly establish a new prudential or conduct standard for payment firms beyond fee-charging permissions.
2026-06-08 19:01:45·pdonofrio@vixio.com
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We welcome the National Credit Union Administration’s action today confirming that federal law preempts the Illinois Interchange Fee Prohibition Act and affirming the longstanding federal authorities that govern credit union activities.
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TITLE: National Credit Union Administration Issues Interim Final Rule Affirming Federal Preemption Over Illinois Interchange Fee Prohibition Act
BODY:
On June 8, 2026, the National Credit Union Administration (NCUA) issued an interim final rule clarifying that federal credit unions possess the authority to charge non-interest charges and fees, including interchange fees, under the Federal Credit Union Act. The rule affirms that federal law preempts the Illinois Interchange Fee Prohibition Act (IFPA).
The NCUA's action addresses a significant conflict between state and federal regulatory authority. The interim final rule confirms that federal law governs credit union fee-charging activities, preventing a patchwork of conflicting state requirements that could disrupt consumers and the payments system. This development aligns with recent actions by the Office of the Comptroller of the Currency (OCC) and a district court ruling issued the previous week, all reinforcing federal preemption principles.
The Illinois Bankers Association, Illinois Credit Union League, American Bankers Association, and America's Credit Unions—co-plaintiffs in ongoing litigation challenging the IFPA—welcomed the NCUA's decision. The organisations said the interim final rule strengthens the legal foundation of their litigation and underscores that the law should not be implemented for any type of financial institution. The co-plaintiffs emphasised that a definitive resolution affirming federal preemption for all banks and credit unions, or the IFPA's repeal by the Illinois General Assembly, remains critical to ensuring consistency, stability, and continued confidence in the national payments system.
The interim final rule represents a significant development in the broader debate over state versus federal regulatory authority concerning financial institution fee structures and interchange practices.
IFPA Litigation Co-Plaintiffs on NCUA Interim Final Rule Affirming Federal Preemption | American Bankers Association Jump to Content Home About Us Press Room Press Releases IFPA Litigation Co Plaintiffs on NCUA Interim Final Rule Affirming… Press Release For Immediate Release June 8, 2026 IFPA Litigation Co-Plaintiffs on NCUA Interim Final Rule Affirming Federal Preemption WASHINGTON — The Illinois Bankers Association, Illinois Credit Union League, American Bankers Association and America’s Credit Unions issued the following statement in response to the National Credit Union Administration’s issuance of an interim final rule clarifying federal credit unions’ power to charge non-interest charges and fees, including interchange fees, under the Federal Credit Union Act: “We welcome the National Credit Union Administration’s action today confirming that federal law preempts the Illinois Interchange Fee Prohibition Act and affirming the longstanding federal authorities that govern credit union activities. This interim final rule, along with the OCC’s recent actions and last week’s district court ruling , provides important clarity that federal law governs these activities, which helps prevent a patchwork of conflicting state requirements that would create unnecessary disruption for consumers and the payments system. “The NCUA’s rule also strengthens the legal foundation in our ongoing litigation challenging IFPA and underscores that the law should not be implemented for any type of financial institution. A definitive resolution to the case reaffirming federal preemption for all banks and credit unions, or the law's repeal by the Illinois General Assembly, is critical to ensuring consistency, stability and continued confidence in the national payments system.” About the American Bankers Association The American Bankers Association is the voice of the nation’s $26.1 trillion banking industry, which is composed of small, regional and large banks that together employ over 2 million people, safeguard $20.5 trillion in deposits and extend $13.7 trillion in loans. About the Illinois Bankers Association The Illinois Bankers Association, the voice of Illinois' banking industry, is a full-service trade association dedicated to creating a positive business climate that benefits the entire banking industry and the communities they serve. Founded in 1891, the IBA brings together state and national banks and savings banks employing over 105,000 people in nearly 4,500 offices. About America's Credit Unions America’s Credit Unions is the unified voice for not-for-profit credit unions, representing more than 96% of the industry's assets and their more than 146 million members nationwide. America’s Credit Unions provides strong advocacy, resources and services to advance, empower, and protect credit unions and the people and communities they serve. For more information about America’s Credit Unions, visit AmericasCreditUnions.org . About the Illinois Credit Union League The Illinois Credit Union League is the primary trade association for more than 200 state and federal credit unions in Illinois. It focuses on providing legislative and regulatory advocacy, compliance assistance and information, and a wide range of educational and training services to those credit unions, who serve about 4.1 million members. More information can be found at www.icul.com . ### About the American Bankers Association The American Bankers Association is the voice of the nation’s $26.1 trillion banking industry, which is composed of small, regional and large banks that together employ over 2 million people, safeguard $20.5 trillion in deposits and extend $13.7 trillion in loans. In Depth Payments Press Contact Sarah Grano (202) 663-5470 Contact Sarah Useful Links Resources for the Media Media Contacts All inquiries from the press can be directed to one of our press contacts. ABA Expert Photos Hi-Res photos for use by the press. ABA Media Appearances Getting the industry's message out – in print and on the air – about banks' health and lending, as well as policies that are harmful to economic recovery. Media Credentials Complimentary press registrations are available for select events. Join Our Media Lists Want to be added to our news release list? Sign up here. RSS Feed Get ABA press releases via RSS.