Trump’s 10% Credit Card Rate Cap Faces Skepticism and Industry Backlash
Former President Donald Trump has proposed a one-year cap on credit card interest rates at 10%, set to begin in January 2026. The announcement follows his administration’s earlier move to scrap a Biden-era rule limiting late fees to $8. But lawmakers and industry groups have already raised concerns over the feasibility of the plan.
Trump’s proposal would see credit card interest rates capped at 10% for a year starting January 20, 2026. However, the White House has not explained how the measure would be enforced or whether it needs approval from Congress. The U.S. Congress has never debated or voted on such a plan, even when Republicans held majorities during Trump’s presidency.
Bipartisan lawmakers, including Senators Bernie Sanders and Josh Hawley, have previously pushed for a 10% interest rate cap. But Senator Elizabeth Warren dismissed Trump’s latest call as meaningless unless Congress passes actual legislation.
Banking trade groups quickly opposed the idea. Five major industry associations warned that a 10% cap would shrink credit availability and force consumers toward less regulated lenders.
Earlier, the Trump administration had already reversed a Biden-era rule that limited credit card late fees to $8. The move signalled a shift in policy direction, though the new interest rate proposal remains unclear in its implementation.
Trump’s proposed interest rate cap lacks concrete details on enforcement or congressional backing. Without legislative action, the plan holds no legal weight. Meanwhile, banking groups argue it could restrict access to credit for many consumers.
