Congress proposes capping credit card rates at 10%—but not until 2031

What it does

This bill caps credit card interest rates at 10% annually and prevents lenders from using fees to circumvent the cap. Consumers benefit by paying dramatically lower interest on credit card debt; lenders and credit card issuers lose revenue. The cap takes effect January 1, 2031, and includes a sunset clause, meaning it expires unless Congress renews it.

Why we flagged it

The bill's sole substantive function is to impose a federal ceiling on credit card APRs. It is a straightforward price control on a consumer financial product, not a subsidy, deregulation, or procedural measure.

What the text implies

• A 2031 effective date gives lenders 6 years to lobby for repeal or exemptions; the sunset clause means the cap expires automatically unless Congress acts, shifting burden to consumer advocates to defend the rule.
• The cap may reduce credit availability for high-risk borrowers, as lenders may tighten underwriting or exit the market rather than accept lower margins; this could push some consumers toward payday lenders or unregulated alternatives.
• Fee restrictions (total fees capped at total finance charges) may incentivize lenders to shift costs into annual fees, late fees, or other mechanisms not explicitly labeled as finance charges, creating a regulatory cat-and-mouse game.
• State law preemption clause preserves state usury laws; states with stricter caps (e.g., 8%) remain unaffected, but states with no cap or higher caps will see federal floor imposed, creating a patchwork compliance burden.

Who it affects

Ordinary Americans carrying credit card debt—disproportionately lower-income households—would save thousands in interest annually. The current average credit card APR exceeds 20%; a 10% cap directly reduces consumer borrowing costs and improves financial stability for millions of households.

Who stands to gain

• consumers carrying credit card debt
• consumer advocacy organizations
• credit counseling nonprofits

Named in the bill

Truth in Lending Act (TILA), Section 107 (TILA), Section 130 (TILA), Section 106 (TILA), credit card issuers, consumer financial services industry, AIG, FBK, FMAO, PFG, PRU

Where it stands

1 cosponsor: 1 Republicans.

• Mar 6, 2025 — Introduced · Congress.gov: “Introduced in House”
• Mar 6, 2025 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

14 lobbying clients named this bill on 19 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $12,960,000 in lobbying spend. A filing names 6 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 94% of bills with at least one filing.

Alexandria Ocasio-Cortez, the sponsor, reported $35,650 in PAC receipts in the 2026 cycle.

• American Bankers Association — $5,210,000 on 2 filings
• Consumer Bankers Association — $2,000,000 on 2 filings
• Mastercard Worldwide — $1,610,000 on 1 filing
• Citigroup Washington, Inc. — $1,330,000 on 1 filing
• Jpmorgan Chase Holdings LLC — $1,190,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.