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By Mandy Taheri
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Several Republican Senate and House members are distancing themselves from President Donald Trump’s recent proposal to cap credit card interest rates, something many Democrats support.
Newsweek reached out to Senate Majority Leader John Thune and House Speaker Mike Johnson for comment via email.
Why It Matters
The vast majority of Americans use credit cards, which account for around one-third of all purchases. Credit card debt has become nearly as ubiquitous, with total household balances reaching a record $1.23 trillion in the latest New York Federal Reserve report, as delinquencies and defaults continue to rise.
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Trump announced support for a one-year cap of 10 percent on credit card interest rates, writing in a Truth Social post on January 9 that Americans are being “ripped off” by credit card companies “charging Interest Rates of 20 to 30%, and even more.”
Such a proposal has support from Democrats in Congress, with Senators Bernie Sanders, an independent from Vermont, and Elizabeth Warren, a Democrat from Massachusetts, among the most vocal proponents of a cap.
However, the proposal lacks support from Trump's own party, with several Republican leaders distancing themselves from it.
What To Know
"Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10 per cent," Trump wrote on Truth Social in January.
"They've really abused the public," the president told reporters aboard Air Force One on Monday, in reference to credit card companies. "I'm not going to let it happen."
Trump had previously floated his interest in the issue on the campaign trail, having said in September 2024, "We're going to cap it at around 10 percent. We can't let them make 25 and 30 percent." He added, "While working Americans catch up, we're going to put a temporary cap on credit card interest rates."
The proposal would likely require approval from Congress and has long had support from some Democrats, like Sanders and New York Representative Alexandria Ocasio-Cortez, who, prior to this announcement, introduced legislation on the matter.
Thune, a South Dakota Republican, told Politico the proposal is “not something I’m out there advocating for—let’s put it that way.”
Senator Mike Rounds, also a South Dakota Republican, told the outlet, “We all want to find ways to make things more affordable, but once you start talking about that, you also start talking about limiting the number of individuals that might be eligible for getting credit.”
He continued, “If you take that away because companies are not offering it, that could be a problem.”
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Another Republican senator, Thom Tillis, who is a member of the Senate Banking Committee, also told Politico he was “totally against” the 10 percent cap on credit card interest rates. Senator Pete Ricketts, a Nebraska Republican, said, “I think we need to be careful about making sure we’re not going to have unintended consequences with regard to credit card markets. We don’t want to cut off credit from Americans.”
Senator Josh Hawley, a Missouri Republican, and Representative Anna Paulina Luna, a Florida Republican, however, have joined Democrats in support of the 10 percent cap.
The Federal Reserve Bank of New York found in March 2025 that 74 percent of Americans have at least one credit card. Those cards "serve as the main method of payment for most individuals" and are the "primary source of unsecured borrowing," the report found.
What People Are Saying
Senator Bernie Sanders wrote on Friday on X before Trump’s Truth Social post: "Trump promised to cap credit card interest rates at 10 percent and stop Wall Street from getting away with murder. Instead, he deregulated big banks charging up to 30 percent interest on credit cards. The result? Last year, JPMorgan CEO Jamie Dimon made $770 million. Unacceptable."
Senator Josh Hawley said on Monday: “President Trump is right: working Americans are drowning in record credit card debt while the biggest credit card issuers get richer and richer by hiking their interest rates to the moon.”
**Senator Elizabeth Warren said on Monday: “**After my speech, the President called me, and I delivered this same message on affordability to him directly. I told him that Congress can pass legislation to cap credit card rates if he will actually fight for it. I also urged him to get House Republicans to pass the bipartisan ROAD to Housing Act, which passed the Senate with unanimous support and would build more housing and lower costs.”
A White House spokesperson previously confirmed to Newsweek that Trump and Warren had a “productive call about credit card interest rates and housing affordability for the American people.”
The Bank Policy Institute, American Bankers Association, Consumer Bankers Association, Financial Services Forum and Independent Community Bankers of America said in a joint statement: "We share the President’s goal of helping Americans access more affordable credit. At the same time, evidence shows that a 10 percent interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards, the very consumers this proposal intends to help."
What Happens Next
Whether Congress will advance legislation to cap credit card interest remains to be seen. Trump has said he wants the cap to be in place by January 20.
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