Overview
- Trump’s post laid out no implementation plan, and the White House has not clarified whether the administration will seek legislation, regulatory action or voluntary industry compliance.
- Bipartisan proposals to set a 10% ceiling already exist, with Sens. Bernie Sanders and Josh Hawley backing a five-year cap and Reps. Alexandria Ocasio-Cortez and Anna Paulina Luna introducing a House version, as Sen. Elizabeth Warren argues only a law would matter and Hawley signals support to vote.
- Major banking trade groups warned a 10% cap would reduce credit availability and push consumers toward less regulated, costlier lenders.
- Analyses cited in coverage estimate roughly $100 billion in annual consumer savings from a 10% cap, with likely tradeoffs including reduced rewards and tighter underwriting for higher-risk borrowers.
- The push contrasts with the administration’s successful effort to overturn an $8 late-fee cap from the Biden era after challenging the rule in court.