Sen. Bernie Sanders (I-VT) has made an unexpected announcement in a moment of solidarity with President Trump. Sanders announced plans to introduce legislation that would cap credit card interest rates at 10%, a policy he says aligns with a campaign proposal from Trump. Sanders called on Trump to support the legislation, which seeks to provide relief to Americans burdened by soaring credit card debt and interest rates.
“During the recent campaign Donald Trump proposed a 10% cap on credit card interest rates. Great idea. Let’s see if he supports the legislation that I will introduce to do just that,” Sanders tweeted.
During the recent campaign Donald Trump proposed a 10% cap on credit card interest rates. Great idea. Let’s see if he supports the legislation that I will introduce to do just that.
— Bernie Sanders (@SenSanders) December 30, 2024
Trump raised the idea while campaigning in New York ahead of his victory over Kamala Harris. “We’re going to cap it at around 10%,” Trump said at the time. “We can’t let them make 25 and 30%.” He framed the temporary cap as a way to help Americans “catch up” amid mounting financial pressures.
Trump vows to impose usury laws on issuers, capping credit card interest at 10%.
"We can't let them make it 25% and 30%."
Follow: @AFpost pic.twitter.com/NonBrI3Ait
— AF Post (@AFpost) September 19, 2024
The timing of Sanders’ announcement coincides with a sharp rise in consumer debt. According to MarketWatch, U.S. credit card debt reached $1.17 trillion in the third quarter of 2024. Data from LendingTree reveals that the average credit card interest rate in December was a staggering 24.43%, with some rates climbing as high as 36%.
Trump’s transition team reiterated his commitment to delivering on campaign promises. Karoline Leavitt, a spokesperson for Trump’s transition, stated, “The American people re-elected President Trump by a resounding margin, giving him a mandate to implement the promises he made on the campaign trail. He will deliver.”
If enacted, the proposed cap could bring significant changes to both consumers and the financial industry. Ted Rossman, a senior industry analyst at Bankrate, noted that such a cap would “completely upend the credit card market.” While this may benefit consumers drowning in debt, it could also limit credit availability for those with lower credit scores, as lenders might tighten their criteria to offset reduced profits.
Critics have raised questions about how such a cap would be implemented and its potential consequences. Still, the policy reflects a growing bipartisan focus on addressing financial strain for average Americans. Trump’s plan, described as a “temporary and immediate relief,” aims to ease the burden of high-interest payments on consumers already grappling with inflation in housing, groceries, and fuel.
As Sanders gears up to introduce the legislation, all eyes will be on whether Trump throws his support behind the effort, further aligning with the populist economic message that helped him secure a second term.