A recent announcement by U.S. President Donald Trump has sparked significant discussion regarding credit card interest rates. Trump stated his intention to impose a one-year cap on these rates at 10%, effective January 20, 2026. However, the details surrounding the implementation of this plan remain vague, and no framework for compliance has been disclosed.
This commitment marks a continuation of Trump’s agenda from his successful 2024 campaign, where he first introduced the concept. At that time, analysts expressed skepticism about the feasibility of such a measure, noting that any cap would require congressional approval—a factor that seems to remain unaddressed in Trump’s latest announcement.
Both Democratic and Republican lawmakers have publicly voiced their concerns about the burdensome interest rates imposed by credit card companies. Currently, Republicans hold a slender majority in both chambers of Congress, yet concrete legislative action to establish a cap has remained elusive. Although there have been attempts to address this issue within Congress, Trump did not commit to supporting any specific bills during his recent statement.
In a post shared on Truth Social, Trump declared, “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%. Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies.” This proclamation, however, has drawn criticism from opposition lawmakers.
Senator Elizabeth Warren, a prominent Democrat on the Senate Banking Committee, dismissed Trump’s statement as meaningless without legislative backing. “Begging credit card companies to play nice is a joke. I said a year ago if Trump was serious, I’d work to pass a bill to cap rates,” she remarked, adding that Trump’s efforts to weaken the Consumer Financial Protection Bureau undercut his credibility on consumer matters.
The White House has yet to elaborate on Trump’s proposal, while major credit card companies and banking institutions have remained silent regarding their stance on the plan. In response to the proposed interest rate cap, several banking advocacy groups warned that enforcing a 10% cap could limit credit access for consumers and drive them toward less regulated financial options. The joint statement came from several organizations, including the Consumer Bankers Association and the American Bankers Association.
Interestingly, bipartisan efforts have emerged in Congress regarding this issue. Senators Bernie Sanders (I-VT) and Josh Hawley (R-MO) previously introduced a bill aimed at capping credit card interest rates at 10% for five years. Representative Alexandria Ocasio-Cortez (D-NY) and Representative Anna Paulina Luna (R-FL) have also collaborated on similar legislation in the House. These initiatives reflect a growing cross-party concern about high credit card rates.
Billionaire fund manager Bill Ackman, who endorsed Trump during the last election cycle, criticized the president’s announcement as a “mistake.” This comes on the heels of the Trump administration’s previous attempts to relax regulations on credit card fees, including a failed bid to overturn a rule limiting late fees to $8—a move that was ultimately struck down by a federal court.
As the debate unfolds, the future of credit card interest rates in the United States appears uncertain, with calls for legislative action on both sides of the aisle.
