Trump’s 10% Credit Card Interest Cap: Where It Stands Now

A deadline to lower credit card interest rates passed this week without any action, despite President Donald Trump’s push for reform.

Earlier this month, Trump called for a one-year 10% cap on credit card interest rates, effective Jan. 20. As of Wednesday, however, no federal laws or executive orders have imposed such a cap, and credit card companies have not announced voluntary rate reductions.

Trump is now urging Congress to pass legislation to make his proposal law, setting the stage for a broader debate over consumer finance and lending practices.

At present, there are no executive orders or federal laws capping credit card interest rates at 10%.

If Congress were to pass legislation implementing the cap, it could significantly lower borrowing costs for millions of Americans, offering relief from today’s average APR of over 21%.

However, critics caution that such a cap might also restrict access to credit, as lenders could tighten approval standards or reduce available credit lines to offset the lower rates.

Speaking at the World Economic Forum in Switzerland, President Donald Trump criticized credit card companies for profit margins exceeding 50% and interest rates as high as 28% to 32%. He urged Congress to impose a one-year cap of 10% on credit card interest rates, arguing it would help millions of Americans save for a home.

Such a cap would mark a dramatic shift, given that the average APR for credit card accounts stood at 21.39% in the third quarter of 2025, according to Federal Reserve data.

Despite the proposal’s potential impact, Congress has shown little appetite for action. A bipartisan Senate bill introduced last year to cap rates at 10% for five years remains stalled, leaving Trump’s plan uncertain.

Even if Congress passed a law capping credit card interest rates at 10%, opponents note it could face legal challenges that delay any relief for borrowers.

Critics such as JPMorgan CEO Jamie Dimon argue that a cap would force lenders to restrict credit access, particularly for consumers with weaker credit scores.

Supporters, including Senator Josh Hawley (R-Mo.), counter that credit card companies are exploiting consumers by charging excessive interest rates while executives collect lavish compensation packages. They argue a cap would restore fairness and reduce financial strain on households.

Trump’s push for a 10% cap on credit card interest rates has generated headlines, but the proposal remains stalled. Without congressional approval, there is no legal authority to enforce the cap, and even if passed, it could face court challenges.

Supporters argue the cap would ease borrowing costs for millions of Americans, while opponents warn it could restrict access to credit and disrupt lending markets. For now, the average APR remains above 21%, leaving consumers waiting for relief that may never materialize.