Trump Calls for 10% Credit Card Interest Rate Cap Starting January 20

TLDR

• President Trump called for a one-year cap on credit card interest rates at 10% starting January 20, 2026, via social media post
• Trump did not provide details on how the cap would be enforced or whether it requires congressional approval
• Banking trade groups warned that a 10% cap would reduce credit availability and push consumers to less regulated lenders
• Bipartisan lawmakers including Bernie Sanders and Josh Hawley have previously introduced legislation to cap rates at 10%
• Senator Elizabeth Warren criticized Trump’s call as meaningless without actual legislation passed by Congress

President Donald Trump announced on Friday that he is calling for a one-year cap on credit card interest rates at 10%. The cap would take effect on January 20, 2026.

Trump made the announcement on Truth Social without providing specific details about implementation. He stated that Americans would no longer be “ripped off” by credit card companies charging rates between 20% and 30%.

The president’s post did not explain how credit card companies would be required to comply with the cap. It also did not clarify whether the proposal needs congressional approval to become law.

Trump made a similar pledge during his 2024 presidential campaign. Analysts at that time noted such a move would require action from Congress.

Major credit card issuers including American Express, Capital One, JPMorgan, Citigroup and Bank of America did not respond to requests for comment. The companies have not indicated whether they will voluntarily lower their rates.

Congressional Response Split Along Partisan Lines

Senator Elizabeth Warren, a Democrat on the Senate Banking Committee, dismissed Trump’s call as meaningless without legislation. She criticized the president for not supporting actual bills to cap rates while also attempting to reduce funding for the Consumer Financial Protection Bureau.

Republican Senator Josh Hawley expressed support for Trump’s proposal on social media. Hawley has previously co-sponsored bipartisan legislation with Senator Bernie Sanders to cap credit card rates at 10% for five years.

Democratic Representative Alexandria Ocasio-Cortez and Republican Congresswoman Anna Paulina Luna have introduced similar legislation in the House. Both chambers of Congress are currently controlled by Republicans with narrow majorities.

The White House did not provide additional details when asked for comment. The administration posted on social media that Trump was capping the rates but did not explain the mechanism.

Banking Industry Warns of Consequences

Five major banking trade groups issued a joint statement opposing the rate cap proposal. The Consumer Bankers Association, Bank Policy Institute, American Bankers Association, Financial Services Forum and Independent Community Bankers of America warned that a 10% cap would reduce credit availability.

The groups stated that consumers would be forced to seek financing from less regulated alternatives. Their statement mentioned pawn shops, auto title lenders and unregulated online lenders as potential options.

The Bank Policy Institute published a report last year stating that a rate cap would force card issuers to reduce cardholder benefits. These benefits include rewards programs tied to purchases.

Billionaire fund manager Bill Ackman, who endorsed Trump in the 2024 election, called the president’s proposal a “mistake” on social media.

The Trump administration recently moved to eliminate a Biden-era rule capping credit card late fees at $8. The administration asked a federal court to throw out the regulation, and a judge subsequently struck down the rule.

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