Senate Republican’s Bill on Credit Card Interest Rates Faces Resistance
Senate Republicans are attempting to solidify President Donald Trump’s proposal to limit credit card interest rates, but this initiative is already meeting some pushback from Republican leadership.
Senator Roger Marshall (R-Kansas) is set to propose a new bill aimed at implementing Trump’s suggestion to cap credit card interest rates at 10% for the next year. However, leaders in both chambers of Congress have expressed concerns, suggesting that such a move could undermine financial stability.
The legislation, known as the Consumer Affordability Protection Act, seeks to place a temporary restriction on how much credit card companies can charge, with the interest rate limited to 10% for a year. Interestingly, this cap would be applicable only to banks and financial entities with assets exceeding $100 billion, excluding smaller community banks and most credit unions.
Marshall explained the rationale behind the bill, stating it aims to “give families some breathing room, restore fairness to our markets, and ensure the American Dream remains achievable for all hardworking individuals.” He added that credit cards are intended as a resource rather than a burden, highlighting that high interest rates hinder many Americans from paying off their debts.
This proposal is in line with Trump’s criticisms of interest rates that can range from 20% to 30%, which he claims have escalated without oversight under the current administration.
Trump has set a target date of January 20, 2026, exactly one year after the start of his second term, for the cap to be initiated. “Affordability! Starting January 20, 2026, as President, I will be calling for a one-year cap on credit card interest rates of 10%,” he proclaimed on Truth Social.
Marshall’s engagement in credit-related legislation isn’t new. Alongside Senate Minority Whip Dick Durbin (D-Ill.), he is involved in a longstanding effort to enhance competition in the credit card payment networks—a bill recently approved by Trump and introduced in the Senate again.
Durbin, who co-sponsors Marshall’s latest bill alongside Senator Peter Welch (D-Vt.), finds an unexpected advocate in Massachusetts Democratic Senator Elizabeth Warren. Warren, known for her progressive stance, recently conferred with Trump about affordability and agreed on the need to cap credit card interest rates, although she remains skeptical about any meaningful progress from the Republican-controlled Congress.
“I have supported this for years. When Trump raised this a year ago, I said, ‘I’m all in.’ But so far, nothing has come of it,” Warren stated.
Despite some bipartisan backing, key Republicans are not entirely convinced that capping interest is the right approach. Senate Majority Leader John Thune cautioned that it might make access to credit more difficult for many. “Credit cards might just turn into debit cards,” he warned, indicating that such changes could be counterproductive.
Moreover, House Speaker Mike Johnson (R-La.) raised concerns about potential negative consequences, noting that lenders could reduce money availability if constraints are enforced. “One of the issues that the president might have overlooked is the unintended impacts,” he explained.
