Trump Calls for One-Year Cap on Credit Card Interest Rates at 10%
Washington, D.C., January 9, 2026 — Former U.S. President Donald Trump announced on Friday his call for a one-year cap on credit card interest rates at 10%, effective starting January 20. However, Trump did not provide details on how such a policy would be implemented or enforced, leaving many questions about the feasibility and legislative pathway of the proposal.
In a message posted on his social media platform Truth Social, Trump stated, "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 added, "Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies." Notably, Trump’s post lacked specifics concerning how the cap would be legislated or enforced, a critical omission given that such regulatory changes typically require Congressional approval.
Bipartisan Concern on High Credit Card Rates
The announcement comes amid ongoing bipartisan concern over the rising costs charged by credit card companies. Both Democratic and Republican lawmakers have expressed unease about the high rates faced by American consumers. Despite Republicans holding narrow majorities in both the Senate and the House, legislation aimed at curbing these fees has yet to pass.
Previously, bipartisan bills have surfaced demonstrating congressional interest in capping credit card interest rates. For example, Senators Bernie Sanders, a Democrat, and Josh Hawley, a Republican aligned with Trump, introduced legislation proposing a 10% cap for five years. Similarly, in the House of Representatives, Democrats and Republicans such as Alexandria Ocasio-Cortez and Anna Paulina Luna have introduced comparable measures, reflecting cross-party recognition of the issue.
Criticism and Skepticism from Lawmakers and Experts
Despite the announcement, some Democratic lawmakers criticized Trump’s declaration as lacking substance without legislative backing. Senator Elizabeth Warren, a leading Democrat on the Senate Banking Committee, called the call "meaningless without a bill being passed by Congress," underscoring the necessity for formal legislative action rather than presidential pronouncements.
Banking and financial groups also voiced concerns regarding the potential impact of a 10% cap on interest rates. Joint statements from organizations including the Consumer Bankers Association, Bank Policy Institute, American Bankers Association, Financial Services Forum, and Independent Community Bankers of America cautioned that such a cap might decrease credit availability and drive consumers toward riskier, less regulated borrowing options.
Bill Ackman, a billionaire fund manager who endorsed Trump in the previous election cycle, publicly described the announcement as a "mistake," highlighting divisions even among supporters of the former president.
Historical Context and Regulatory Actions
The proposal echoes earlier debates over credit card regulations. Last year, the Trump administration sought to overturn a credit card late fee regulation introduced under President Joe Biden. The prior regulation capped late fees at $8, but a federal judge later struck down the rule after business and banking interest groups challenged its legality. This recent history adds complexity to Trump’s current push for interest rate caps.
Next Steps and Congressional Outlook
While Trump’s statement reiterates his campaign pledge from 2024, analysts remain skeptical about the initiative’s prospects without clear legislative action. With Republicans controlling Congress by narrow margins, any effort to pass credit card interest rate caps would require negotiation across party lines, and Trump provided no explicit support for existing bills that aim to achieve this.
As of now, major banks and credit card issuers, such as American Express, Capital One, JPMorgan Chase, Citigroup, and Bank of America, have not commented on Trump’s announcement.
The White House has yet to provide further details or clarification on enforcement mechanisms or the legal basis for the proposed cap.
Reporting by Kanishka Singh and Jasper Ward in Washington; additional contributions by Jarrett Renshaw, Pete Schroeder, Saeed Azhar, Nate Raymond, Michelle Price, and David Shepardson. Editing by Tom Hogue and Stephen Coates.
For continuous updates on this developing story, stay tuned to Reuters.