President Donald J. Trump on Friday called for a one-year cap on credit-card interest rates at 10%, reviving a campaign-trail proposal that has drawn bipartisan interest on Capitol Hill while facing skepticism from the financial industry.
In a post on Truth Social, Mr. Trump said the cap would take effect Jan. 20, 2026—the one-year anniversary of his second inauguration—and framed the move as relief for consumers facing interest rates that often exceed 20%. “We will no longer let the American public be ‘ripped off’ by credit card companies,” he wrote, blaming persistently high rates on the prior administration.
According to Federal Reserve data, average credit-card interest rates currently run above 20%, meaning a federally enforced 10% ceiling would represent a sharp reduction in borrowing costs. It remains unclear whether Mr. Trump intends to pursue the proposal through executive action, pressure issuers to voluntarily lower rates, or urge Congress to act.
The idea has found uncommon support across party lines. Republican Sen. Josh Hawley and independent Sen. Bernie Sanders, who caucuses with Democrats, previously introduced legislation to cap rates at 10%. A similar House measure was put forward by Democratic Rep. Alexandria Ocasio-Cortez and Republican Rep. Anna Paulina Luna.
Supporters argue that issuers can absorb lower margins and that consumers need relief as debt levels climb. Americans held $1.23 trillion in credit-card balances in the third quarter of last year, a record, according to the Federal Reserve Bank of New York. A 2024 NerdWallet study found the average indebted household owed more than $10,500.
Card issuers and some analysts counter that rate caps could restrict credit availability and would likely require congressional approval to implement. Republicans hold narrow majorities in both chambers, but no bill has yet advanced.
Mr. Trump reiterated his stance Friday, calling the proposal an “affordability” measure, even as questions remain over how—and whether—it could be enforced.
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