Trump Signals Credit Card Interest Rate Cap And Backs Credit Card Competition Act Of 2026

President Donald Trump has announced a proposed cap on credit card interest rates and voiced support for legislation addressing credit card transaction fees. The statements were made in two separate posts on a social media platform.

The first post, made on January 9, called for a one-year cap of 10 percent on credit card interest rates, citing affordability concerns and the prevalence of rates exceeding 20 percent. The statement characterized the proposal as a temporary measure tied to the administration's first year and did not describe a specific implementation mechanism.

In the second post, the President expressed support for the Credit Card Competition Act of 2026, legislation introduced earlier this month that would require changes to how certain credit card transactions are routed and processed. The bill would prohibit exclusive network arrangements on covered credit cards and restrict practices that limit merchant routing choice, changes that proponents have linked to concerns about credit card swipe fees.

The Credit Card Competition Act would make several targeted changes, including:

• Network competition tied to swipe fee concerns. The bill would require covered card issuers with more than $100 billion in assets to enable multiple unaffiliated payment card networks on each credit card, a change supporters argue would affect the fees merchants pay to accept credit cards.
• Limits on routing restrictions. The legislation would prohibit contractual, technical, or financial practices that inhibit a merchant's ability to route transactions over eligible payment card networks.
• Restrictions on technology-based exclusivity. The bill would bar requirements tied to authentication, tokenization, or other security technologies that cannot be used by all payment card networks eligible to process a transaction.
• Defined exclusions. The legislation would exclude three-party payment system models and would require coordination with the Treasury Department to identify payment card networks that pose national security concerns.

Banking trade groups and industry advocates have quickly mobilized against the proposed interest rate cap. These groups argue that such a drastic limit would lead to unintended consequences that could destabilize the consumer credit market. Specifically, industry representatives contend that a 10% cap would constrict access to credit, hinder economic growth by reducing consumer spending, and drive consumers to predatory alternatives.

Putting It Into Practice: On January 12, President Trump reportedly spoke with Senator Elizabeth Warren regarding potential bipartisan interest in a credit card interest rate cap. To date, however, that concept has been advanced only through public statements, with no accompanying legislation or formal regulatory proposal. While there is speculation that any action could take the form of an executive order, the legal effect and durability of such an approach remain uncertain. In the interim, market participants should continue to monitor legislative and regulatory developments and assess how potential changes to routing requirements or network competition could affect program economics, contractual arrangements, and operational systems in 2026.