Sanders-Hawley Bill Revived by Trump’s Rate Cap Decree

A stalled bipartisan bill has been given new life by Donald Trump’s executive decree capping credit card interest rates at 10%. The legislation, originally introduced by Senators Bernie Sanders and Josh Hawley in February 2025, had failed to pass Congress due to banking opposition. Now, Trump has unilaterally adopted the bill’s core provision, announcing on Truth Social that the cap will take effect on January 20.
The move creates a fascinating political dynamic. Sanders, a socialist, and Hawley, a populist conservative, found common ground on the issue of high interest rates. By adopting their policy, Trump is bridging the gap between the far left and the populist right, leaving the centrist establishment and the banking lobby isolated.
However, the banking industry remains a formidable opponent. Major financial associations issued a statement warning that the cap would be “devastating” for the economy. They argued that the policy would lead to a reduction in credit availability, hurting the very people Sanders and Hawley aim to protect. The banks are likely to challenge the decree in court.
Senator Elizabeth Warren was skeptical of Trump’s commitment to the cause. She called the announcement a “joke” without legislative backing, noting that Trump has previously opposed consumer protection measures. Warren argued that without the force of law behind it, the decree is just empty words.
Despite the legal questions, Senator Hawley cheered the move as a “fantastic idea.” The revival of the 10% cap idea demonstrates the growing power of populism in American politics. As January 20 approaches, the fate of the policy hangs in the balance.