Sponsors (2)
Automatically indexing the dollar threshold to CPI prevents inflation from eroding coverage and gives predictability to institutions, but it can raise statutory caps that may reduce some consumer protections and imposes a modest recurring administrative burden.
Taxpayers and consumers will be protected from threshold erosion because the dollar amount will automatically increase each year with CPI, preserving intended coverage and exemptions.
Banks and other financial institutions can rely on an automatic, predictable annual inflation adjustment to the dollar threshold, reducing the need for frequent legislative fixes.
Some consumers and taxpayers may face reduced protections or higher costs if inflation-adjusted increases raise statutory caps that limit consumer remedies.
The federal board must perform yearly calculations and publish adjustments on a set timetable, creating a modest administrative burden and potential timing issues if CPI revisions occur.
Based on analysis of 2 sections of legislative text.
Makes a dollar threshold in federal consumer finance law automatically adjust for inflation using the CPI, with an initial Oct 2009–Oct 2025 adjustment and annual updates.
Introduced February 11, 2026 by Garland H. Barr · Last progress February 11, 2026
Adds an automatic inflation-adjustment to a dollar threshold in federal consumer finance law by requiring the Federal Reserve Board to set an initial CPI-based adjustment and then update that dollar amount annually using the October Consumer Price Index. The Board must compute the initial change using the percent difference between October 2009 and October 2025 CPI and complete that initial adjustment by mid‑2026, then make annual updates no later than January 15 each year thereafter.