Two Millennial Congresswomen Introduce Legislation to Cap Credit Card Interest Rates at 10%

In a rare display of bipartisan cooperation, Representatives Anna Paulina Luna (R-Fla.) and Alexandria Ocasio-Cortez (D-NY) have joined forces to propose legislation that aims to cap credit card interest rates at a maximum of 10%. This move comes in the wake of an alarming rise in credit card debt, which has reached over $1 trillion, with average interest rates hovering around 28.71%. This initiative echoes a campaign promise made by President Trump, who argued for a similar cap during his 2024 campaign. Luna emphasized the burdensome nature of current credit card interest rates, calling them predatory towards working-class Americans. Ocasio-Cortez echoed these concerns, highlighting the detrimental impact that high-interest rates have on families struggling to make ends meet. The proposed cap, if implemented, seeks not only to alleviate the financial strain on consumers but also to inject a sense of fairness into the lending landscape. However, the proposal has attracted a mixed bag of responses from economic experts. While advocates argue it could provide significant relief to millions trapped in debt, critics caution that such a cap could lead to adverse effects, including reduced access to credit for higher-risk consumers. Industry voices, including the American Bankers Association, have framed the cap as a potential trigger for credit rationing, which could further burden those most in need. Economic analysts like Arpit Gupta of NYU and C. Kirabo Jackson from Northwestern have similarly expressed concern that capping interest rates too low can backfire, possibly resulting in fewer credit options for those who may benefit from credit access. As we explore this legislative effort, it is crucial to consider the broader implications it holds. Credit cards serve as an essential financial tool for many Americans, allowing for immediate access to funds in moments of need. However, the disproportionate burden of high-interest rates has raised significant concerns over the ethics of consumer lending practices. The question remains—will this proposed cap be a step toward financial equity, or will it inadvertently shrink the opportunities for those it aims to help? These debates underscore the complex interplay between consumer protection and the realities of lending, which will be a focal point as Congress deliberates this bill. This content has been analyzed and reviewed by artificial intelligence to ensure clarity and comprehensiveness. As the legislative session continues, the discussions around this law will likely be heated and could set a precedent for how financial regulations evolve in the future.