Trump, AOC, and Bernie Unite to Cap Credit Card Rates Amid Bank Warnings
Jan. 15, 2026 — In a surprising political alignment, figures from across the U.S. political spectrum, including former President Donald Trump, Representative Alexandria Ocasio-Cortez (AOC), and Senator Bernie Sanders, have united in support of capping credit card interest rates. This bipartisan push comes as banks issue strong warnings about the potential fallout of such measures.
Trump Proposes 10% Cap on Credit Card Rates
On Friday, former President Trump announced on Truth Social his plan to implement a one-year cap of 10% on credit card interest rates. His statement emphasized protecting consumers from "being ripped off" by credit card companies charging rates between 20% and 30%. He mentioned the cap would take effect on January 20, though details on implementation remain unclear.
Bipartisan Support for Rate Caps
This initiative echoes legislative efforts by lawmakers from both parties. Sens. Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) introduced a bill last February to cap credit card rates at 10% through 2031. Similarly, a bipartisan House bill spearheaded by Reps. AOC (D-N.Y.) and Anna Paulina Luna (R-Fla.) also proposes a 10% ceiling.
Senator Hawley revived his campaign Monday for Congress to pass the Sanders-Hawley legislation, noting, “President Trump is right: working Americans are drowning in record credit card debt while the biggest credit card issuers get richer and richer by hiking their interest rates to the moon.” Senator Elizabeth Warren (D-Mass.), a long-time consumer advocate, expressed optimism about the proposal following a phone call with Trump, stating Congress could approve such a cap if he actively championed it.
Credit Card Rates and Consumer Debt on the Rise
Federal Reserve data shows credit card interest rates have surged since 2022, reaching an all-time high in the summer of 2024. Bankrate’s weekly national average reported a 19.65% rate as of January 7. Meanwhile, American consumers’ outstanding credit card balances totaled a staggering $1.23 trillion by the third quarter of 2025, per the Federal Reserve.
Banks Warn of Reduced Credit Access
Bank executives have voiced concerns that interest rate caps could restrict credit availability, particularly for those who rely on it most. Jeremy Barnum, CFO of JPMorgan Chase, cautioned during the bank’s recent earnings call that many consumers might lose access to broad credit options. Similar sentiments came from top officials at Citi and Bank of America.
Brian Moynihan, CEO of Bank of America, acknowledged support for affordability but warned of "unintended consequences" from a rate cap, including stricter credit standards. He suggested that while affordability is a priority, consumers should prepare for tighter lending conditions.
Market Reaction and Industry Changes
Following Trump’s announcement, shares of Capital One, a major credit card issuer, dropped in Monday trading, signaling market unease about potential regulatory changes.
Some companies are already adjusting to the political climate. Bilt, a payment rewards program for renters, launched three new credit cards with 10% interest rates for the first year, aligning with the proposed cap.
Potential Shift Toward Alternative Credit Options
Banking groups, including the American Bankers Association, warn that capping rates might push consumers toward less regulated and often costlier alternatives like Buy Now, Pay Later (BNPL) services. BNPL allows consumers to split purchases into smaller payments without interest but may charge fees for late payments.
Industry analysts suggest that BNPL could gain significant growth if constrained credit card access becomes widespread. Last May, the Consumer Financial Protection Bureau (CFPB) clarified that BNPL lenders often meet legal criteria as credit card providers and must extend similar consumer protections, though regulatory oversight varies.
What Lies Ahead?
While a rate cap could reduce future credit costs for consumers—potentially saving an estimated $100 billion annually, according to a Vanderbilt Policy Accelerator study—it also poses challenges for banks. Businesses heavily reliant on credit card revenue may need to pivot, whereas diversified financial institutions could better absorb the impact.
Experts caution that such sweeping changes could lead to “uncharted territory,” including reduced credit for lower-income and lower-credit-score consumers.
As Americans navigate a complex debt landscape involving mortgages, student loans, and credit cards, the debate over interest rate caps highlights the broader struggle to balance consumer protection with credit accessibility.
Hannah Parker is a business reporter for NBC News Digital. Steve Kopack contributed to this report.