Washington, January 10, 2026 – U.S. President Donald Trump announced on Friday that he is calling for a one-year cap on credit card interest rates at 10%, starting January 20, 2026. The move, shared via social media platform Truth Social, comes amid growing concerns from lawmakers and consumer advocates about high credit card rates.

However, Trump did not provide details on how the plan would be implemented, enforced, or whether it would require Congressional approval, raising questions about the feasibility of the proposal.

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Trump’s Announcement

On Truth Social, Trump stated:

“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%. Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies.”

This announcement echoes Trump’s 2024 election campaign pledge, but analysts note that capping credit card interest rates would require legislative action by Congress to become legally binding.

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Lawmakers Respond

Lawmakers from both parties have expressed concerns about rising credit card rates, particularly as Republicans hold narrow majorities in both the Senate and House. However, critics argue that Trump’s statement has no legal effect without a bill being passed.

• Senator Elizabeth Warren (D-MA) criticized the move, saying it was meaningless without Congressional action.
• Senator Bernie Sanders (D-VT) and Senator Josh Hawley (R-MO) have previously introduced bipartisan legislation to cap rates at 10% for five years.
• House members like Alexandria Ocasio-Cortez (D-NY) and Anna Paulina Luna (R-FL) have also proposed bills to limit credit card interest rates.

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Banking Industry Reaction

Several major banks and credit card issuers, including American Express, Capital One, JPMorgan Chase, Citigroup, and Bank of America, did not provide comments on Trump’s call.

Industry advocacy groups issued a joint statement warning that a 10% cap could:

• Reduce credit availability for consumers
• Push consumers toward less regulated, higher-cost alternatives

Groups issuing the statement included the Consumer Bankers Association, Bank Policy Institute, American Bankers Association, Financial Services Forum, and Independent Community Bankers of America.

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Context and Criticism

Trump’s proposal comes amid past actions by his administration affecting credit card regulations. In 2025, the administration moved to scrap a rule limiting credit card late fees to $8, arguing the rule was illegal. A federal judge later struck down the regulation.

Billionaire investor Bill Ackman described Trump’s latest call for a 10% cap as a “mistake,” noting that effective consumer protection requires clear legislation rather than executive announcements.

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Broader Implications

If enacted, a 10% interest rate cap could dramatically impact credit card companies, consumer lending, and the broader U.S. financial market. Policymakers and financial experts will be closely watching whether Trump’s announcement translates into formal legislation or remains largely symbolic.

The proposal also highlights growing cross-party concern over rising credit costs, signaling potential bipartisan action to protect consumers from excessive credit card interest rates.