Trump Proposes One-Year Cap on Credit Card Interest Rates at 10%

Trump’s Proposal on Credit Card Interest Rates

U.S. President Donald Trump proposed a one-year cap on credit card interest rates set at 10%, effective from January 20. However, details about the implementation and enforcement of his plan remain unclear.

2024 Election Pledge

During his campaign leading up to the 2024 elections, Trump promised to address credit card interest rates, a commitment that many analysts deemed unfeasible without congressional approval.

Democratic and Republican Responses

Both Democratic and Republican lawmakers have expressed concerns about high credit card interest rates and have advocated for measures to tackle them.

Legislative Efforts and Trump’s Lack of Specific Support

Despite several legislative efforts to implement such a proposal, none have become law so far. Trump has not explicitly backed any specific bill addressing credit card interest rates.

Trump’s Announcement on Truth Social

Trump declared on Truth Social, “Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%.” He also expressed his intent to prevent the American public from being ‘ripped off’ by Credit Card Companies.

Reactions from Major Banks and Advocacy Groups

Major U.S. banks and credit card issuers have yet to respond to Trump’s announcement. However, The Consumer Bankers Association, Bank Policy Institute, American Bankers Association, Financial Services Forum and Independent Community Bankers of America issued a joint statement expressing concerns that a 10% interest rate cap could reduce credit availability and drive consumers towards less regulated, more expensive alternatives.

Bipartisan Legislation on Credit Card Interest Rates

U.S. Senators Bernie Sanders and Josh Hawley have introduced bipartisan legislation proposing a five-year cap on credit card interest rates at 10%. Also, Democratic U.S. Representative Alexandria Ocasio-Cortez and Republican Congresswoman Anna Paulina Luna have put forward a House of Representatives bill addressing high credit card interest rates.

Public Criticism and Support

Public reactions to Trump’s proposal varied, with opposition lawmakers criticizing him for failing to deliver on his campaign pledge, and others like billionaire fund manager Bill Ackman supporting his call for lower credit card interest rates.

Trump Administration’s Attempt to Overturn Credit Card Fee Rule

Last year, the Trump administration sought to revoke a rule capping credit card late fees at $8 from the era of former President Joe Biden. A federal court subsequently dismissed the rule after the administration and banking groups argued the rule was illegal.