Advocacy in Action | October 29, 2026
Federal Reserve's Current Debit Interchange Cap Violates Durbin Amendment
The U.S. Court of Appeals for the Eighth Circuit ruled that the Federal Reserve’s current debit interchange cap violates the Durbin Amendment. In Corner Post, Inc. v. Board of Governors of the Federal Reserve System, the court held that the Fed improperly included fixed and other non-transaction-specific costs when establishing the cap and affirmed a lower court decision vacating the rule.
The decision could ultimately lead to materially lower debit swipe fees for restaurants and other merchants. The court found that the Fed must base its methodology on costs associated with processing particular debit transactions, rather than broader fixed bank costs. Average bank processing costs have fallen significantly since the existing rate was established, potentially strengthening the case for a lower cap.
The ruling does not immediately change the fees restaurants pay, and further litigation is likely.
AHLA Updates
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American Franchise Act: AHLA brought hotel industry advocates to Capitol Hill to meet with Senate leaders from both parties and build bipartisan support for the American Franchise Act - a top AHLA policy priority. The bipartisan legislation provides needed clarity and certainty for small business owners by preserving the traditional franchise relationship, protecting brand standards, and preventing regulatory overreach that could fundamentally undermine this proven model.
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Booking Scams: AHLA continues to collaborate with the FTC to protect consumers from booking scams and expect they may take action on this issue soon. The FTC confirmed there is an active investigation into Booking Holdings and Guest Reservations centered on this type of behavior. The AHLA is preparing a consumer campaign to educate travelers and help them avoid deceptive practices. Read more.
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Furniture Tariffs: AHLA is urging the Administration to further delay a scheduled increase in the tariffs on upholstered wooden furniture (to 30%) and cabinetry and vanities (to 50%) on January 1. AHLA is also engaging key Congressional offices to underscore the challenges that higher tariffs on these essential products would pose for hoteliers.
Tariff Updates: Lawsuit Filed
The Liberty Justice Center, the legal group that successfully challenged portions of the Trump Administration's tariff actions under Section 301, has filed a new lawsuit arguing that the Administration exceeded its authority when imposing tariffs on certain Canadian imports.
The lawsuit estimates the tariffs on Canadian cheese could increase its costs by approximately $40 million annually. The challenged tariffs, set at 50%, apply to a limited but evolving list of Canadian imports, including certain dairy products, alcoholic beverages, paper goods, and other products.
Other Local & Federal Advocacy Updates
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Trump announced an $8 billion program - the Harvest Fuel Relief program - to provide temporary relief to farms amid rising fuel and energy prices. Read more.
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Supporters of proposed New Haven ordinance banning short-term rentals hold rally. Watch here.