Particle.news
Download on the App Store

Trump Calls for One-Year 10% Cap on Credit Card Rates Starting Jan. 20

The announcement offers no implementation mechanism, prompting legal analysts to say any binding cap would likely require Congress.

Overview

  • Trump’s Truth Social post urges a 10% ceiling on card interest for one year beginning Jan. 20, 2026, but provides no path for enforcement.
  • Legal experts and some lawmakers say a nationwide cap would likely need congressional authorization and could face court challenges.
  • Major issuers have not committed to comply as banking trade groups warn a strict cap would cut access for riskier borrowers and push some to costlier, less regulated lenders.
  • Similar 10% cap bills backed by Sen. Bernie Sanders and Sen. Josh Hawley, and by Reps. Alexandria Ocasio-Cortez and Anna Paulina Luna, have been introduced but not enacted.
  • Average card APRs top 20% and balances total about $1.23 trillion, while critics including investor Bill Ackman argue the proposal is a mistake that could lead to card cancellations.