Trump renews 1-year 10% credit-card APR cap push as banks warn of curtailed credit
President Trump renewed a campaign‑era pledge for a one‑year, 10% cap on credit‑card APRs in a recent Truth Social post — saying he wants it in place by Jan. 20 — but did not specify whether he would pursue it by legislation or executive action. Banks and industry groups warned the hard cap would curtail credit and push consumers to higher‑cost, less‑regulated alternatives, even as analysts note roughly 195 million cardholders, near‑20% average APRs, and estimates that a 10% cap could save consumers about $100 billion a year while likely prompting issuers to cut rewards; the proposal comes amid prior Trump administration rollbacks at the CFPB and eased scrutiny of major bank deals.
📌 Key Facts
- On Jan. 9, 2026, Trump renewed a pledge for a one-year, 10% cap on credit-card interest rates and said he wants the cap in place by Jan. 20 (the first anniversary of his second-term inauguration); he previously vowed a temporary 10% cap as a candidate in September 2024 but did not pursue it once in office until this announcement.
- In a Truth Social post Trump accused credit-card companies of charging 20–30% APR and declared 'AFFORDABILITY!' while providing no specifics on how the cap would be implemented or whether he would seek it through legislation or executive action.
- Major banks and credit-card issuers — including the American Bankers Association and 52 state bankers associations — issued joint opposition, warning a 10% government price cap would raise costs, curtail access to credit and push consumers toward less-regulated, higher-cost alternatives such as payday loans and pawnshops.
- Market and regulatory context: about 195 million Americans had credit cards in 2024 and paid $160 billion in interest; total card balances were roughly $1.23 trillion in Q3 2025, and average APRs were near record highs (roughly 19.65%–21.5%), with Bankrate reporting an average just under 20% and the CFPB estimating lenders earn about $130 billion a year from interest and fees.
- Research cited by reporters estimates consumers would save roughly $100 billion per year in interest under a 10% cap while the industry would likely remain profitable but scale back rewards and perks.
- Regulatory and administration actions under Trump’s team have weakened oversight: officials rescinded a Biden-era CFPB rule that would have capped credit-card late fees at $8, approved Capital One’s 2025 acquisition of Discover with little resistance, and left the CFPB largely nonfunctional after actions by Russell T. Vought (halting bank exams, ending enforcement lawsuits, attempting mass staff removals and saying he hoped to eliminate the bureau), moves that are currently being challenged in litigation.
- There is existing political history and mixed signals: Senators Bernie Sanders and Josh Hawley previously introduced a multi-year 10% APR cap bill that stalled without administration backing (Sanders has criticized Trump for deregulating banks instead of pursuing a cap), while at least one Republican senator says he has spoken with Trump and will work on legislation to enact a cap with the president’s 'full support.'
📊 Relevant Data
As of 2024, credit card ownership rates were 70% for Black adults and 78% for Hispanic adults, compared to 89% for White adults, with overall U.S. adult population demographics being approximately 59% White non-Hispanic, 19% Hispanic, 13% Black non-Hispanic, and 9% other races.
Report on the Economic Well-Being of U.S. Households in 2024 — Federal Reserve
64% of Black adults and 53% of Hispanic adults engage in expensive credit card practices such as making only minimum payments or late payments, compared to 42% of White adults, in a context where Black adults represent about 13% of the U.S. population, Hispanics 19%, and Whites 59%.
Racial and ethnic differences in financial vulnerability in America — TIAA Institute
Credit score gaps by race emerge by age 25, with differences up to 140 points between racial groups, persisting throughout adulthood and reflecting repayment gaps rooted in childhood environments, in a U.S. population where racial demographics include about 59% White non-Hispanic, 19% Hispanic, and 13% Black non-Hispanic.
Credit Access in the United States — Opportunity Insights
Interest rate caps on credit cards would adversely affect access to credit for cardholders who regularly borrow, particularly impacting low-income and high-risk consumers by reducing availability for those with subprime profiles, who often face higher default risks.
The Potential Adverse Consequences of a Credit Card Interest Rate Cap — Bank Policy Institute
📰 Source Timeline (3)
Follow how coverage of this story developed over time
- Reports that major banks and credit‑card issuers, via the American Bankers Association and allied groups, issued a joint statement opposing Trump’s proposed 10% cap and warning it would push consumers toward less regulated, higher‑cost alternatives like payday loans and pawnshops.
- Clarifies that Trump said in a Friday night Truth Social post he wants the one‑year cap in place by Jan. 20 (the first anniversary of his second‑term inauguration) but did not specify whether he would pursue it via legislation or executive action.
- Notes that at least one Republican senator says he has spoken with Trump and will work on a bill to enact the cap with the president’s 'full support.'
- Provides updated market and regulatory context: about 195 million Americans had credit cards in 2024 and paid $160 billion in interest, with total card balances at approximately $1.23 trillion in Q3 2025 and average APRs between 19.65% and 21.5%, near record highs.
- Reiterates research estimating U.S. consumers would save roughly $100 billion per year in interest under a 10% cap while the industry would remain profitable but likely scale back rewards and perks.
- Details that Trump’s administration previously approved Capital One’s 2025 acquisition of Discover with little resistance and has left the CFPB 'largely nonfunctional,' underscoring the political surprise of this hard cap proposal to an industry that backed his 2024 campaign.
- Confirms that as a candidate Trump first vowed a temporary 10% credit-card interest cap in September 2024 but did not pursue it once in office until this new Jan. 9, 2026 post.
- Details that Trump officials killed a Biden-era CFPB regulation that would have capped credit-card late fees at $8.
- Reports that Russell T. Vought, as CFPB director and White House budget director, halted bank exams, ended dozens of enforcement lawsuits, tried to fire more than 90% of CFPB staff, and has said he hopes to eliminate the bureau within two to three months, moves currently blocked by litigation.
- Provides Trump’s exact social media quote accusing credit-card companies of charging 20–30% rates and promising 'AFFORDABILITY!' without specifics on implementation.
- Cites average credit-card APR at just under 20% according to Bankrate and repeats CFPB’s estimate that lenders earn about $130 billion a year from interest and fees.
- Notes that Bernie Sanders and Josh Hawley previously introduced a bill to cap APRs at 10% for several years, which stalled without administration backing, and that Sanders publicly criticized Trump for deregulating banks instead of pursuing a cap.
- Includes the American Bankers Association’s and 52 state bankers associations’ prior letter arguing that government price controls such as a 10% cap would raise costs and harm access to credit.
- Highlights Trump’s mixed messaging on affordability, including calling it a 'fake narrative' and 'con job' last month despite now emphasizing it in the interest-cap proposal.