President Donald Trump on Friday announced he is calling for a temporary cap on credit card interest rates, saying the move is aimed at making borrowing more affordable for Americans.
In a post on his Truth Social platform on January 9, Trump criticized high credit card rates and said a cap should take effect Jan. 20, 2026.
“Please be informed that we will no longer let the American Public be “ripped off” by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration. AFFORDABILITY! 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%. Coincidentally, the January 20th date will coincide with the one year anniversary of the historic and very successful Trump Administration. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! PRESIDENT DONALD J. TRUMP”
The announcement echoes a campaign-trail proposal Trump made during the 2024 election season, when he first suggested limiting credit card interest rates to address affordability concerns.
BREAKING: President Trump is calling for credit card companies to cap interest rates to 10% for a year starting January 20th.
This would fulfill the campaign promise he made.pic.twitter.com/QA4Pia0FVD
— George (@BehizyTweets) January 10, 2026
What the Proposal Means (and Doesn’t Mean)
Trump’s post describes his intent and timing, but he did not specify a mechanism for enforcement or legal implementation.
It is not clear whether Trump plans to pursue the cap through executive action, agency rulemaking, or congressional legislation.
No binding cap on credit card interest rates is currently in place as of publication.
Lawmakers and Industry Reactions
The idea of a 10% cap has drawn attention in Congress in prior years. Bipartisan proposals to limit credit card rates have been introduced — for example, a measure co-sponsored by Republican Sen. Josh Hawley of Missouri and independent Sen. Bernie Sanders of Vermont — but such bills have not been enacted into law.
Reaction to Trump’s announcement was mixed:
- Republican Sen. Josh Hawley expressed support for the idea, saying on social media, “Fantastic idea. Can’t wait to vote for this.”
Supporters say high interest rates — which currently average more than 20% — burden households carrying credit card debt.
Industry groups and some economic analysts have cautioned that a mandatory rate cap could affect credit availability if card issuers are unable to price for risk without higher returns. Critics also note that without specific legislation or regulatory action, the proposal remains aspirational.
Context on Credit Card Rates
Federal Reserve data show average credit card interest rates above 20%, significantly higher than the 10% cap Trump proposes. High rates affect millions of Americans who carry balances from month to month.
Any future policy action to impose a nationwide interest rate cap would likely require legislative or regulatory steps and could involve legal and economic complexities.
