Key facts
- Congress repealed a federal cap on overdraft fees.
- Major banks have increased their overdraft fees.
- Families paid over $12 billion in overdraft and nonsufficient funds fees in 2025.
- The repeal is expected to significantly boost bank revenues from these fees.
Major banks have increased their overdraft fees subsequent to Congress's repeal of a federal cap on these charges. This legislative action has enabled financial institutions to raise fees that disproportionately affect struggling families. In 2025, consumers paid more than $12 billion in overdraft and nonsufficient funds fees. The repeal of the federal cap is anticipated to lead to a substantial increase in revenue for many banks from these specific charges. This development places additional financial strain on households already facing economic difficulties, as they are now subject to higher costs for accidental overdrafts.