The Senate voted 52-47 late Tuesday to roll back a Trump-era rule that Democrats argue enables predatory lending.
The rule, finalized by the Office of the Comptroller of the Currency in October, enables payday lenders and other nonbank financial institutions to avoid state caps on interest rates by partnering with national banks headquartered in less restrictive states.
The White House supported repealing the rule, and the resolution now goes to the House. The American Bankers Association opposed using the Congressional Review Act to pass this replacement rule.
Eight state attorneys general had in January sued to overturn the rule.
Democrats had criticized Blake Paulson, acting head of the OCC, for lobbying against the repeal.
Update: This story has been updated to reflect the correct timing for the vote.