President Donald Trump on Friday renewed a campaign pledge to cap U.S. credit card interest rates at 10% for one year, a proposal he said should take effect on January 20, 2026.
The announcement immediately drew resistance from major banks and industry groups, even as it gained support from some lawmakers across party lines.
Trump did not specify whether the cap would be enacted through executive action or legislation, leaving uncertainty over how the policy would be implemented or enforced.
In a post on his Truth Social platform, he said consumers would no longer be “ripped off” by credit card companies charging rates of 20% to 30%.
The White House later declined to provide further details on the mechanism for the proposal.
The proposal mirrors a promise Trump made during the 2024 campaign, which analysts at the time said would require congressional approval.
Republicans currently hold narrow majorities in both chambers of Congress, though no bill has yet been formally endorsed by the president.
Senator Roger Marshall of Kansas said he spoke with Trump and would work on legislation with his full support.
Separate bipartisan efforts already exist, including a proposal from Senators Bernie Sanders and Josh Hawley to cap rates at 10% for five years.
Representative Alexandria Ocasio-Cortez and Representative Anna Paulina Luna have also introduced similar measures.
Researchers estimate that a 10% cap could save Americans roughly $100 billion a year in interest payments.
About 195 million Americans held credit cards in 2024 and paid $160 billion in interest, according to federal data.
Average credit card rates currently range from about 19.65% to 21.5%, near historic highs.
Banking groups warned that a cap could reduce access to credit and push borrowers toward less regulated alternatives.
In a joint statement, industry advocates said the proposal would “only drive consumers toward less regulated, more costly alternatives.”
Critics of the administration argued that the call lacked substance without legislative action.
Senator Elizabeth Warren said the proposal was meaningless without Congress passing a binding law.
Despite the opposition, the issue has intensified debate over consumer debt, bank profits, and the role of federal regulation.