Overview

• The proposed bill, backed by Senators Sanders and Hawley, seeks to cap credit card interest rates at 10% for five years, fulfilling a campaign promise made by President Donald Trump in 2024.
• Supporters argue the cap could alleviate financial burdens for working-class families, as U.S. credit card debt reached $1.17 trillion in late 2024, with average interest rates exceeding 20%.
• Critics, including financial institutions and analysts, warn that the cap could restrict credit access for higher-risk borrowers, forcing them toward costlier and less regulated lending options.
• Industry groups and experts highlight potential unintended consequences, such as reduced credit availability, higher fees, and diminished credit card rewards for consumers.
• The bill's passage depends on Congressional approval, with ongoing debate over its economic impact and potential bipartisan support.