Yes, as of January 2026, President Donald Trump is proposing a 10% cap on credit card interest rates for one year, starting on January 20, 2026. This proposal is designed to address record-high credit card debt, which exceeded $1.2 trillion in the third quarter of 2025.
Here are the key details regarding this proposal as of mid-February 2026:
The Proposal: Trump announced in January 2026 that he is calling for a temporary 10% cap on interest rates for one year to provide relief to consumers facing rates that often exceed 20% to 30%.
Action Taken: While initially framed as a direct demand on credit card companies, Trump has since urged Congress to pass legislation to enact this 10% cap.
Industry Response: Banking industry leaders, including JPMorgan Chase CEO Jamie Dimon, have warned that such a cap could be an "economic disaster," likely restricting credit access for millions of Americans with lower credit scores.
Potential Consequences: Critics argue that if the cap is implemented, banks might reduce credit limits, raise fees, or stop issuing cards to riskier borrowers.
Support: Despite banking opposition, the idea has gained some bipartisan attention, with a similar 5-year cap bill introduced in the Senate.
The proposal is intended to significantly reduce the interest burden on American households, but its implementation faces challenges, as experts suggest it would likely require act of Congress to be enforced.
Yes, as of early 2026, President Trump has actively called for a one-year 10% cap on credit card interest rates. This proposal, which he originally floated during his 2024 campaign, aims to provide financial relief to Americans facing record-high credit card debt.
Status of the Proposal
Effective Date: Trump initially called for the cap to begin on January 20, 2026, the first anniversary of his second inauguration.
Method of Implementation: While the administration initially pressured banks to comply voluntarily, Trump has since urged Congress to pass legislation to make the 10% cap legally binding.
Legislative Action: A bipartisan bill, the 10 Percent Credit Card Interest Rate Cap Act, was introduced in the 119th Congress, but it has faced significant hurdles.
Key Perspectives
Support: Proponents, including some populist Republicans and progressive Democrats like Sen. Bernie Sanders, argue the cap would save consumers roughly $100 billion per year in interest payments.
Opposition: The banking industry and some economists warn the cap would be an "economic disaster," potentially forcing banks to drastically reduce credit availability for up to 80% of Americans, particularly those with lower credit scores.
Industry Response: While most major banks have resisted, some fintech companies like Bilt have begun offering new cards that voluntarily meet the 10% interest rate target.
Norb Leahy, Dunwoody GA Tea Party Leader
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