President Trump Proposes 10% Credit Card Rate Cap

Reviving a 2024 campaign pledge, President Donald Trump announced late Friday that he supports a one-year, 10% cap on credit card interest rates, proposed to take effect January 20, the one-year anniversary of his return to office. While it remains unclear whether the policy would be implemented through executive action or legislation, the President said Sunday night that credit card companies failing to comply with a 10% cap could face legal action.

The President cited growing affordability pressures on consumers, specifically calling out credit card issuers charging interest rates of 20% to 30%.

The Association shares the concerns raised by America's Credit Unions and other leagues that a broad rate cap would ultimately restrict access to credit, particularly for working families. In a letter to the President, America's Credit Unions President and CEO Scott Simpson warned that while the goal of affordability is laudable, "capping rates at 10% does not make credit more affordable-it makes it unattainable for millions of working Americans because financial institutions will not be able to offer credit cards to most consumers at a 10% rate."

Previous legislative efforts have stalled. In 2025, Senators Bernie Sanders and Josh Hawley introduced bipartisan legislation that would cap credit card interest rates at 10% for five years, but the proposal did not advance.

The MD|DC Credit Union Association will continue to work with the credit union system to voice concerns about the proposed cap, and are reaching out to the members of our delegation who serve on the Senate Banking Committee.