Trump pushes 10% credit card interest rate cap amid banking industry pushback

The battle over the American wallet has intensified as President Donald Trump pushes for a temporary, one-year 10% cap on credit card interest rates — a proposal he revived from the campaign trail, according to The Associated Press.

AP reporters Ken Sweet and Seung Min Kim describe the effort as placing the White House in unusual alignment with progressive critics of Wall Street while drawing opposition from major banking trade groups. As of February 12, 2026, the White House’s published “365 Wins in 365 Days” page states that the president “directed credit card companies to cap interest rates at 10%,” presenting the move as part of the administration’s economic messaging, according to the official posting on WhiteHouse.gov.

The president has not been clear whether he intends to pursue the cap through executive action or legislation, and the White House did not respond to questions about how such a limit would be implemented, the Associated Press reported. Legal experts cited by PolitiFact said a unilateral executive order attempting to impose a cap on private lenders would likely face significant legal hurdles because Congress, not the executive branch, sets statutory lending limits.

Industry reaction has been swift. The American Bankers Association and America’s Credit Unions issued statements warning that a government-imposed rate ceiling would reduce access to credit and harm consumers. During mid-January earnings calls, JPMorgan Chase Chief Financial Officer Jeremy Barnum said a 10% cap would be “very bad for consumers” and would require banks to significantly cut back their credit card businesses, according to Reuters.

Americans currently pay average credit card interest rates between roughly 19.65% and 21.5%, according to Federal Reserve data cited by the Associated Press, which referenced the Fed’s G.19 consumer credit release. A 10% ceiling would represent a substantial reduction from those levels.

The banking industry argues such a cap would dramatically shrink lending. The ABA has estimated that as many as 159 million Americans could lose access to credit under a strict 10% cap, according to research published in the association’s ABA Banking Journal. The estimate reflects the industry’s position and has not been independently verified by federal regulators.

At the same time, the proposal has found bipartisan traction in Congress. Sen. Bernie Sanders, Vermont independent, and Sen. Josh Hawley, Missouri Republican, introduced the “10 Percent Credit Card Interest Rate Cap Act,” which would impose a 10% ceiling for five years, according to the bill text on Congress.gov and a news release from Sanders’ Senate office. The five-year duration differs from Mr. Trump’s one-year proposal as reported by the Associated Press.

Supporters of a cap cite research from the Vanderbilt Policy Accelerator estimating that a 10% limit could save Americans roughly $100 billion annually in interest payments, a finding first reported by the Associated Press and detailed in a Vanderbilt report. Researchers behind the study argue banks could remain profitable under such a ceiling, though industry representatives dispute that conclusion.

Mr. Trump has described prevailing credit card rates — often ranging between 20% and 30% — as a “ripoff,” the Associated Press reported.

Whether the proposal advances through legislation, executive action or remains a political bargaining tool, it has sharpened a policy divide documented across the Associated Press, Reuters, trade association statements and congressional records: consumer advocates argue a rate ceiling would provide immediate relief, while industry leaders warn it would constrict lending and disproportionately affect higher-risk borrowers.