Advocacy in Action is the Equipment Leasing & Finance Association's newly reimagined advocacy newsletter, bringing together the federal Washington Report and state policy updates in one comprehensive resource. Developed by ELFA's government affairs team, the newsletter is designed to keep members informed about legislative, regulatory, and political developments that may affect the equipment finance industry.
FEDERAL ADVOCACY
Waters Launches Request for Information on AI in Financial Services
Last week, U.S House Financial Services Committee Ranking Member Rep. Maxine Waters (D-CA) released a formal Request for Information (RFI) seeking public feedback on the use of artificial intelligence (AI) in the financial services industry. The RFI is intended to help inform House Democrats' approach to AI policy in a manner that "encourages responsible innovation while protecting consumers, investors, small businesses, and our nation's financial markets." Ranking Member Waters' focus on AI will be especially important if Democrats regain the House majority following the November elections.
Waters is seeking input from a variety of stakeholders on potential benefits, emerging risks, existing regulatory authorities, potential regulatory gaps, and areas where Congress may need to act. ELFA is reviewing the request and evaluating opportunities to provide feedback that reflects the equipment finance industry's perspective. Members can view the full RFI here.
Warsh's Highlights Equipment Finance Industry
During testimony last week before the U.S. House Financial Services Committee and the U.S. Senate Banking Committee, Federal Reserve Chairman Kevin Warsh highlighted the continued growth in equipment investment and recognized the critical role the equipment finance industry plays in supporting infrastructure development and investment in high-tech equipment and software. The remarks underscore the industry's growing importance as businesses finance the equipment and technology needed to drive innovation and strengthen U.S. competitiveness.
This recognition reflects ELFA's ongoing engagement with the Federal Reserve. In December 2025, ELFA leadership met with Federal Reserve staff to discuss trends in equipment finance and the industry's contribution to the broader economy. Since that meeting, ELFA Chief Economist, Tim Mahedy has provided Federal Reserve staff with ELFA's monthly CapEx Finance Index, helping inform their understanding of equipment investment trends and the health of the sector. As investment in artificial intelligence, advanced manufacturing, and digital infrastructure accelerates, maintaining this dialogue has become increasingly important in ensuring policymakers understand the essential role equipment finance plays in enabling these investments.
ELFA will continue working with the Federal Reserve and Congress to elevate the industry's voice and reinforce the vital role equipment finance serves in powering economic growth, expanding AI infrastructure, and financing the technologies and equipment businesses need to innovate and compete.
Section 1071 Final Rule Webinar – More to Come
Last week, ELFA hosted its first webinar examining the CFPB's newly finalized Section 1071 rule and what it means for the equipment finance industry. The discussion covered ELFA's advocacy efforts, key changes made in the Bureau's 2026 final rule, the status of ongoing litigation, and practical considerations for members as they begin preparing for implementation.
While the final rule is an important milestone, significant questions remain. The CFPB has not yet released technical or implementation guidance. ELFA will keep members informed as more information becomes available. ELFA will also continue engaging with the CFPB to advocate on behalf of the equipment finance industry and gain further insights to aid its members with compliance.
If you were unable to join the webinar or missed our original coverage of the final rule, you can access additional resources and updates here. As implementation progresses, ELFA will continue providing members with timely analysis, educational resources, and advocacy updates to help navigate the next phase of Section 1071 implementation.
STATE ADVOCACY
Turning the Tide on Disclosure Legislation
One of the year's most significant accomplishments was successfully preventing four priority commercial disclosure bills from advancing in Maryland, Illinois, New Jersey, and New York. By engaging early with legislators, educating policymakers on the unique nature of equipment finance, and working alongside coalition partners, ELFA helped prevent proposals that would have applied consumer-style disclosure requirements to commercial financing transactions.
These efforts not only protected the industry from unnecessary regulatory burdens but also reinforced ELFA's reputation as a trusted resource for lawmakers seeking practical, balanced policy solutions.
Shaping Policy Before It Becomes Law
ELFA also expanded its influence at the national level through active participation in the Uniform Law Commission's (ULC) Commercial Finance Disclosure Act drafting process. Throughout the year, ELFA participated in multiple drafting committee meetings, including an in-person national meeting with commissioners and stakeholders. Those efforts helped secure the inclusion of critical industry exemptions in the current draft, including protections for true leases (UCC Article 2A), purchase-money obligations (PMSIs), and captive finance companies.
By engaging during the model law drafting process, ELFA is helping shape the conversation before legislation reaches state capitols—creating opportunities to address concerns early and promote greater consistency across states.
