Trump’s Pledge on Credit Card Rates Faces Scrutiny as State of the Union Looms

President Donald Trump’s promise to lower credit card interest rates is under fire, with Senator Elizabeth Warren, D-Mass., accusing him of “all talk and no action” ahead of his State of the Union address. Warren, in a commentary piece published in Fox News, argues that Trump could deliver relief to American families by capping credit card interest rates at 10%, a pledge he made during his campaign.

The Promise and the Deadline

During his presidential campaign, Trump vowed to lower costs for Americans “on day one.” Warren contends that, over 400 days into his second term, his policies have instead increased costs for necessities like groceries, housing, and electricity. She specifically points to his call for banks to implement a one-year, 10% cap on credit card interest rates by January 20, 2026, a deadline that passed without any action from major financial institutions.

Potential Savings for Consumers

According to Warren, a 10% cap on credit card interest rates could save the average American with credit card debt approximately $900 annually, totaling roughly $100 billion in collective savings for families. This, she argues, would provide financial breathing room and stimulate the economy.

Rising Credit Card Debt

Nationwide, Americans held $1.21 trillion in credit card debt in 2025, averaging about $5,595 per cardholder. Data indicates that credit card debt increased across all age groups between 2023 and 2025, with Generation X carrying the highest average debt.

Clash with the White House and Regulatory Concerns

Warren and Trump clashed last month after she publicly criticized his affordability agenda, prompting a phone call from the President. She now alleges that Trump and his budget director, Russell Vought, are undermining efforts to lower credit card costs by attempting to limit the authority of the Consumer Financial Protection Bureau (CFPB). Warren claims that while Trump publicly supports a rate cap, his administration is simultaneously aiding the banks that profit from high interest rates and hindering states’ ability to protect consumers.

Industry Pushback

Warren notes that major banks have warned of an “economic disaster” if credit card interest rates are capped, a claim she dismisses, pointing to the substantial profitability of these financial institutions and the availability of lower rates from smaller banks and credit unions.

Path Forward: Potential Legislation

Warren expressed her willingness to collaborate with the White House on legislation to cap credit card interest rates. She suggested that the Senate Banking Committee could hold hearings in March 2026 and potentially pass a bill to the President’s desk this spring. “No more delays. It’s time to deliver relief for American families,” she stated.

State of the Union Boycott

As Trump prepares to deliver his State of the Union address on February 24, 2026, at least a dozen Democratic lawmakers plan to boycott the event and attend a rally on the National Mall, organized by MoveOn and MeidasTouch. These lawmakers, including Senators Ed Markey, Jeff Merkley, Chris Murphy, Tina Smith, and Chris Van Hollen, cite Trump’s divisive rhetoric and policies as reasons for their absence. Senator Van Hollen stated that Trump is “marching America towards fascism” and that attending the address would normalize his actions.