Marshall-Durbin Credit Card Bill Poses Grave Threat to Native Communities

The Navajo Nation faces a challenging path to recovery as it grapples with the aftermath of the pandemic. Representation in Congress remains limited, which has led to concerns about proposed legislation, notably the Marshall-Durbin credit card bill, that could threaten economic advancements for Native communities in Arizona.

Rep. Myron Tsosie, D-Chinle, has vocalized strong opposition to the bill, urging Arizona’s congressional delegation to reject it. He argues that while supporters suggest the legislation will reduce costs for working families by cutting credit card interchange fees, previous legislative actions, like the Durbin Amendment, have shown that the reality often diverges from such promises.

Tsosie points out that the Durbin Amendment largely benefited major retailers—including Walmart and Amazon—without translating those savings to consumers at the checkout. A Federal Reserve study indicated that over $100 billion in savings for these corporations did not equate to lower prices for shoppers.

For many Navajo families, who already contend with food insecurity and limited access to grocery stores, the potential consequences of the Marshall-Durbin bill are dire. Tsosie highlights that food deserts and exorbitant grocery prices are ongoing challenges that have persisted long before recent inflation trends.

Additionally, the proposed legislation poses risks to local businesses and banks vital for community development. With reduced revenues from credit card processing, local financial institutions could be forced to cut essential services, including no-fee credit cards and small business loans, which many in the community rely on.

Concerns have been raised by economists regarding the wider implications of such policies. It is estimated that extending Durbin-like regulations to credit cards could displace 10 to 15 million Americans from the credit system. Examples from countries like Australia, which implemented similar measures, show that consumers faced higher fees and limited services as a result.

Tsosie emphasizes that real economic recovery for the Navajo Nation hinges on internal growth, community support, and the development of small businesses. In light of the potential pitfalls posed by the Marshall-Durbin bill, he calls on Arizona’s lawmakers to side with small businesses and oppose the legislation.

Rep. Myron Tsosie serves as a representative for Legislative District 6 in Arizona.