The Final Stretch of Session Season
As the 2026 state legislative cycle winds down, only a handful of legislatures remain in regular session while most states have adjourned and shifted their focus to implementation, oversight, and the upcoming elections. Although the pace of bill introductions has slowed considerably, the policy decisions made over the past six months will continue to shape the regulatory landscape well into 2027.
Attention is now turning to November's midterm elections. Voters in 46 states will elect approximately 6,139 state legislators, representing more than 83% of all state legislative seats nationwide, while 36 states will elect governors, making this one of the most consequential election years for state government in recent history.
Reading the Political Landscape
While predicting election outcomes is never an exact science, the current environment suggests a highly competitive cycle. Republicans enter the election defending majorities in many legislative chambers, while Democrats are targeting suburban districts and open seats in several battleground states. Economic issues, affordability, energy policy, artificial intelligence, workforce development, and access to capital continue to dominate state policy discussions and are expected to remain central campaign themes through November.
Regardless of which party ultimately gains seats, one trend remains clear: state legislatures continue to drive policy innovation at a pace far exceeding Washington. For the equipment leasing and finance industry, maintaining strong relationships with lawmakers in both parties will remain essential as commercial finance, licensing, tax policy, and technology regulation continue to evolve.
A Successful Year for Equipment Finance Advocacy
Despite another active legislative year, the equipment leasing and finance industry successfully avoided many of the proposals that posed the greatest compliance risks.
Several states once again considered commercial financing disclosure legislation modeled after consumer Truth in Lending laws. These proposals often fail to recognize the unique nature of commercial equipment finance transactions and can create unnecessary compliance burdens without providing meaningful benefits to business borrowers.
Thanks to coordinated advocacy by ELFA, its members, coalition partners, and state lobbying teams, those proposals were effectively contained. Disclosure legislation failed to advance in Maryland, while similar measures in Illinois, New Jersey, and New York stalled before reaching the finish line. These outcomes preserve a more workable regulatory environment while allowing ELFA to continue advocating for thoughtful policies that distinguish equipment finance from other commercial lending products.
Advocacy That Made the Difference
These successes did not happen by chance. Throughout the legislative cycle, ELFA maintained a proactive presence by engaging lawmakers early, coordinating with industry partners, submitting testimony, participating in stakeholder negotiations, and educating policymakers on the importance of preserving exemptions for true leases, purchase-money financing, and captive finance companies.
Equally important, ELFA continued its engagement with the Uniform Law Commission's Commercial Financing Disclosure Committee, helping ensure the industry's unique business model remains part of the national conversation as states evaluate future disclosure frameworks. Building relationships before legislation gains momentum has once again proven to be one of the association's strongest advocacy tools.
Looking Ahead
As legislative sessions conclude, attention now shifts from policymaking to politics. The outcomes of the 2026 elections will shape committee leadership, legislative priorities, and the policy environment for years to come. While campaign season will temporarily slow legislative activity in many states, it also creates valuable opportunities for industry engagement with both incumbent and newly elected lawmakers.
For ELFA’s State Advocacy Team, the mission remains unchanged: advocate early, engage often, and ensure policymakers understand the vital role equipment leasing and finance plays in supporting businesses, strengthening local economies, and financing the assets that keep American commerce moving.
