US President Donald Trump announced on Friday that he intends to cap credit card interest rates at 10 percent for one year, starting January 20. The president did not provide specifics on how the plan would be implemented or how compliance by banks and credit card companies would be ensured.
Trump first made the pledge during his 2024 presidential campaign. Analysts have noted that such a move would require congressional approval to become law, and no new legislation has been explicitly endorsed by the White House. Lawmakers from both parties have expressed concern over high credit card rates, but efforts in Congress to impose such caps have not yet resulted in enacted legislation.
“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 percent,” Trump wrote on his social media platform, Truth Social. He added, “Please be informed that we will no longer let the American public be ‘ripped off’ by credit card companies.”
The White House did not provide further details when asked, and major US banks and credit card issuers, including American Express, Capital One, JPMorgan, Citigroup, and Bank of America, did not immediately respond to requests for comment.
Bipartisan efforts to cap credit card interest rates have been underway for several years. Senators Bernie Sanders and Josh Hawley, representing Democratic and Republican parties respectively, introduced legislation that would limit interest rates to 10 percent for five years as part of broader consumer relief measures. In the House of Representatives, Democratic Congresswoman Alexandria Ocasio-Cortez and Republican Anna Paulina Luna also proposed a bill setting the same 10 percent cap, reflecting cross-party concern over rising borrowing costs.
Critics have questioned Trump’s plan, citing potential consequences for consumers. Billionaire investor Bill Ackman, who supported Trump in previous elections, called the proposal a “mistake,” arguing that it could lead credit card issuers to cancel accounts for millions of consumers, pushing them toward high-cost alternatives.
Trump’s announcement comes after his administration moved last year to eliminate a Biden-era rule limiting credit card late fees to $8. The administration argued the regulation was illegal, and a federal judge later struck it down.
Republicans currently hold narrow majorities in both the Senate and the House, which could influence the feasibility of Trump’s plan. Opposition lawmakers have criticized him for not fulfilling earlier campaign promises on the issue, and many analysts note that executive action alone cannot enforce interest rate caps without legislative backing.
The new proposal highlights ongoing debates over consumer protection, financial regulation, and the balance between government oversight and banking industry autonomy. Observers say the coming weeks may determine whether the plan gains traction on Capitol Hill or remains largely symbolic.
