President Donald J. Trump has revived one of his campaign promises, announcing plans to cap credit card interest rates at 10% for one year, beginning January 20, 2026. The proposal, shared on social media late Friday, is aimed at making borrowing more affordable for American consumers amid record levels of credit card debt.
In his announcement, Trump said the cap would help prevent Americans from being “ripped off” by credit card companies charging annual rates as high as 20% to 30%. The president tied the timing of the proposal to the anniversary of his administration’s return to the White House.
But while the idea has drawn attention across the political spectrum, lawmakers and industry experts have pointed out an important reality: the president cannot impose such a cap on his own. Any change to interest rate policy of this nature would have to be passed by Congress as law.
A similar effort has already been introduced in Congress. In 2025, Senators Bernie Sanders and Josh Hawley put forward a bipartisan bill that would cap credit card interest at 10% for five years — but it has not advanced into law.
Supporters say the move would offer relief to millions of Americans struggling with high borrowing costs, while critics — including major banking groups — warn that a strict interest cap could lead issuers to tighten credit and reduce access for higher-risk borrowers.
As of now, there are no details on how a 10% interest cap would be enforced or whether legislation will move quickly enough for the January 20 target. Still, the discussion has reignited a broader debate about consumer borrowing costs and access to credit in the United States.
