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Breaking News: Trump Pushes 10% Credit Card Interest Cap for One Year

New York — President Donald Trump has revived a campaign pledge to impose a one-year cap of 10% on credit card interest, a move that could save Americans billions in interest yet faces immediate resistance from the banking industry and its allies on Capitol Hill.

The method and timing remain unsettled. A Friday night social media post suggested the cap could be enacted either by executive action or through legislation, wiht at least one Republican senator indicating he will work on a bill with Trump’s strong backing.The president has signaled an aim for enforcement by January 20, roughly one year into his term.

wall Street and credit-card lenders quickly voiced opposition, arguing that limiting rates would disproportionately affect lower-income borrowers by reducing available credit and pushing consumers toward higher-cost lending options such as payday loans or pawnshops.

Trump asserted on his Truth Social platform that the era of “ripping off” American consumers with interest rates in the 20%–30% range must end.

Economists who examined the pledge estimate ample savings: about $100 billion in annual interest if rates were capped at 10%.They caution the industry would suffer a significant hit, but could remain profitable if rewards and perks are pared back.

CFPB data show roughly 195 million Americans had at least one credit card in 2024, with about $160 billion in interest charges assessed. The New York Federal Reserve estimated total U.S.credit card debt at about $1.23 trillion in the third quarter of the previous year.

Today’s averages for credit-card interest hover around 19.65% to 21.5%,still high by historical standards,though lower than the peak levels seen in recent years as the federal funds rate fluctuated. In broader political terms, Trump’s white House has traditionally leaned toward industry-kind policies on finance, even as regulatory bodies have faced questions about thier vigor.

Recent corporate moves illustrate the delicate balance between regulation and profitability. A landmark Capital One acquisition of Discover financial—creating the nation’s largest credit card company—was completed with limited White House pushback, while the Consumer Financial Protection Bureau has been described as largely nonfunctional during the current term.

Banking groups rejected the proposal, warning that a rate cap would push consumers toward less-regulated lenders and higher overall costs. They note that banks earn money from three streams: merchant fees, customer fees, and interest, and contend eliminating or lowering interest would force trade-offs elsewhere in the product ecosystem.

Experts like Brian Shearer, who studies market competition, argue that a 10% cap could yield substantial savings for consumers without causing widespread account closures because the dominant banks are already earning substantial profits across income groups. He also cautions that strict caps can exclude the least creditworthy borrowers from access to mainstream credit, a dynamic observed in states with tighter caps.

Historical examples matter: some cases show that aggressive caps can reduce access for the most vulnerable, even as consumers with higher credit scores continue to benefit. Proponents point to caps already in place for specific groups, such as active-duty service members and credit unions, while critics emphasize the nuances of risk-based lending in broad markets.

White House officials have not publicly detailed how the cap would be implemented or whether talks with lenders have occurred. supporters include several lawmakers who frame the proposal as a step to lower household costs and curb corporate practices seen as profiteering.

House and Senate Democrats and Republicans alike have proposed legislation aligned with the idea. Notably, senate contenders Bernie Sanders and Josh Hawley unveiled a plan for an immediate 10% cap for five years. Critics argued that presidential deregulation could undermine consumer protections. Other lawmakers, including representatives Alexandria Ocasio-Cortez and Anna Paulina Luna, have introduced companion measures.

Questions linger about how the administration would operationalize the cap,its durability,and the broader impact on credit availability and consumer choice.

Key facts at a glance

Evergreen perspectives on rate caps

• Balancing consumer relief with access to credit remains a central challenge for any rate cap policy.
• Caps can improve affordability for some borrowers while constraining lenders’ ability to serve higher-risk customers; effects vary by market and enforcement level.

Two questions for readers

• If a 10% cap were enacted, how would it affect your own borrowing choices and financial planning?
• do you think rate caps or targeted regulation better protect consumers without unduly limiting access to credit?

Disclaimer: Financial topics involve complex trade-offs. Decisions should consider personal credit health and local regulatory guidance.

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