The Dictatorship

Trump pushes a 1-year, 10% cap on credit card interest rates. Banks balk

Published

6 months ago

January 12, 2026

Trump pushes a 1-year, 10% cap on credit card interest rates. Banks balk

NEW YORK (AP) — Reviving a campaign pledge, President Donald Trump wants a one-year, 10% cap on credit card interest rates, a move that could save Americans tens of billions of dollars but drew immediate opposition from an industry that has been in his corner.

Trump was not clear in his social media post Friday night whether a cap might take effect through executive action or legislation, though one Republican senator said he had spoken with the president and would work on a bill with his “full support.” Trump said he hoped it would be in place Jan. 20, one year after he took office.

Strong opposition is certain from Wall Street in addition to the credit card companies, which donated heavily to his 2024 campaign and have supported Trump’s second-term agenda. Banks are making the argument that such a plan would most hurt poor people, at a time of economic concern, by curtailing or eliminating credit lines, driving them to high-cost alternatives like payday loans or pawnshops.

“We will no longer let the American Public be ripped off by Credit Card Companies that are charging Interest Rates of 20 to 30%,” Trump wrote on his Truth Social platform.

Researchers who studied Trump’s campaign pledge after it was first announced found that Americans would save roughly $100 billion in interest a year if credit card rates were capped at 10%. The same researchers found that while the credit card industry would take a major hit, it would still be profitable, although credit card rewards and other perks might be scaled back.

About 195 million people in the United States had credit cards in 2024 and were assessed $160 billion in interest charges, the Consumer Financial Protection Bureau says. Americans are now carrying more credit card debt than ever, to the tune of about $1.23 trillion, according to figures from the New York Federal Reserve for the third quarter last year.

Further, Americans are paying, on average, between 19.65% and 21.5% in interest on credit cards according to the Federal Reserve and other industry tracking sources. That has come down in the past year as the central bank lowered benchmark rates, but is near the highs since federal regulators started tracking credit card rates in the mid-1990s. That’s significantly higher than a decade ago, when the average credit card interest rate was roughly 12%.

The Republican administration has proved particularly friendly until now to the credit card industry.

Capital One got little resistance from the White House when it finalized its purchase and merger with Discover Financial in early 2025, a deal that created the nation’s largest credit card company. The Consumer Financial Protection Bureau, which is largely tasked with going after credit card companies for alleged wrongdoing, has been largely nonfunctional since Trump took office.

In a joint statement, the banking industry was opposed to Trump’s proposal.

“If enacted, this cap would only drive consumers toward less regulated, more costly alternatives,” the American Bankers Association and allied groups said.

Bank lobbyists have long argued that lowering interest rates on their credit card products would require the banks to lend less to high-risk borrowers. When Congress enacted a cap on the fee that stores pay large banks when customers use a debit card, banks responded by removing all rewards and perks from those cards. Debit card rewards only recently have trickled back into consumers’ hands. For example, United Airlines now has a debit card that gives miles with purchases.

The U.S. already places interest rate caps on some financial products and for some demographics. The Military Lending Act makes it illegal to charge active-duty service members more than 36% for any financial product. The national regulator for credit unions has capped interest rates on credit union credit cards at 18%.

Credit card companies earn three streams of revenue from their products: fees charged to merchants, fees charged to customers and the interest charged on balances. The argument from some researchers and left-leaning policymakers is that the banks earn enough revenue from merchants to keep them profitable if interest rates were capped.

“A 10% credit card interest cap would save Americans $100 billion a year without causing massive account closures, as banks claim. That’s because the few large banks that dominate the credit card market are making absolutely massive profits on customers at all income levels,” said Brian Shearer, director of competition and regulatory policy at the Vanderbilt Policy Accelerator, who wrote the research on the industry’s impact of Trump’s proposal last year.

There are some historic examples that interest rate caps do cut off the less creditworthy to financial products because banks are not able to price risk correctly. Arkansas has a strictly enforced interest rate cap of 17% and evidence points to the poor and less creditworthy being cut out of consumer credit markets in the state. Shearer’s research showed that an interest rate cap of 10% would likely result in banks lending less to those with credit scores below 600.

The White House did not respond to questions about how the president seeks to cap the rate or whether he has spoken with credit card companies about the idea.

Sen. Roger Marshall, R-Kan., who said he talked with Trump on Friday night, said the effort is meant to “lower costs for American families and to reign in greedy credit card companies who have been ripping off hardworking Americans for too long.”

Legislation in both the House and the Senate would do what Trump is seeking.

Sens. Bernie Sanders, I-Vt., and Josh Hawley, R-Mo., released a plan in February that would immediately cap interest rates at 10% for five years, hoping to use Trump’s campaign promise to build momentum for their measure.

Hours before Trump’s post, Sanders said that the president, rather than working to cap interest rates, had taken steps to deregulate big banks that allowed them to charge much higher credit card fees.

Reps. Alexandria Ocasio-Cortez, D-N.Y., and Anna Paulina Luna, R-Fla., have proposed similar legislation. Ocasio-Cortez is a frequent political target of Trump, while Luna is a close ally of the president.

___

Seung Min Kim reported from West Palm Beach, Fla.

The Dictatorship

Rep. Julia Letlow wins Louisiana GOP Senate primary runoff

Published

5 hours ago

June 28, 2026

Blue Light Newsroom

Rep. Julia Letlow wins Louisiana GOP Senate primary runoff

Jun. 27, 2026, 9:51 PM EDT

Rep. Julia Letlow won Louisiana’s Republican Senate primary runoff Saturday, defeating former Rep. John Fleming.

Her win comes as a victory for President Donald Trump, who has endorsed her repeatedly throughout the race — including before she was even officially running.

Letlow made history in 2021 when she became the first Republican woman to represent Louisiana in Congress. In that special election, she won the seat that her late husband, Luke Letlow, had won prior to dying of complications related to Covid-19 in December 2020.

Letlow had no political experience prior to running for her late husband’s seat. She holds a doctorate in communication from the University of South Florida and worked as an administrator for Tulane University and the University of Louisiana, according to her LinkedIn page. Nonetheless, she won the special election House race with nearly 65% of the vote.

In Congress, she has served on the appropriations and education committees, and has been a reliably MAGA Republican.

Letlow’s win also comes as a rebuke to Fleming, who loaned himself more than $11 million, according to the Federal Election Commission, and tried running for the same seat in 2016 only to finish in fifth place in the nonpartisan primary. (Letlow did not loan her campaign any money, and took in more than $5.35 million compared to Fleming’s more than $12.1 million, FEC filings show.)

Trump has played a key role in the race. In addition to backing Letlow early on, the president also helped tank Republican incumbent Sen. Bill Cassidy’s re-election campaign in last month’s primary, based on the senator’s record of bucking his party and voting in favor of Trump’s second impeachment. In the primaryLetlow earned nearly 45% of the vote, giving her a healthy lead over both Fleming, who received about 28% of the vote, and Cassidy, who earned nearly 25%.

Ahead of Saturday’s runoff, polling showed Letlow and Fleming in a close race, with Letlow retaining a small lead in several polls.

Letlow will now proceed to the November general election to face off against the Democratic nominee, farmer Jamie Davis, who came out on top in tonight’s Democratic primary runoff.

The state has not sent a Democrat to the Senate since 2008, when Mary Landrieu won her last term in office.

Julianne McShane is a breaking news reporter for MS NOW who also covers the politics of abortion and reproductive rights. You can send her tips from a non-work device on Signal at jmcshane.19 or follow her on X or Bluesky.

The Dictatorship

‘Horrifying’: Pulte’s choice for top spy aide stokes fears of Trump vote tampering

Published

5 hours ago

June 28, 2026

Blue Light Newsroom

‘Horrifying’: Pulte’s choice for top spy aide stokes fears of Trump vote tampering

Jun. 28, 2026, 1:36 PM EDT

Bill Pulte, the acting director of national intelligencehas stirred fear by choosing as his chief of staff a GOP election lawyer who oversaw a poll watching program that included Jack Posobiec and other conservative conspiracy theorists. The lawyer, Christina Norton, also appears to have no experience working in the intelligence community.

“It is horrifying,” a former senior U.S. intelligence official told MS NOW Saturday. “Not only does Norton have absolutely no background, experience or expertise in national security or intelligence, but her principal qualifications appear to be loyalty to Pulte and an embrace of absurd election-interference conspiracies.”

Sen. Thom Tillis, R-N.C., who has been a vocal critic of Pulte, also raised concerns about election integrity on Sunday while taking shots at the director of national intelligence and the office itself.

“We should eliminate the DNI, and we should eliminate Pulte from the DNI until that happens,” he said on BLN, adding, “I am concerned that we’re gonna continue to cast doubt on elections in November and erode what has been a 250-year tradition of a peaceful transition of power.”

Pulte’s choice of Norton is also likely to increase concerns among Democrats that President Donald Trump intends to use the Office of the Director of National Intelligence to interfere in the midterm elections. Pulte, a loyalist with no intelligence experience, has used his current position as head of federal mortgage agencies to refer political rivals of the president for federal criminal prosecution.

Rep. Jamie Raskin, D-Md., told MS NOW on Sunday that the choice “just confirms” that the “only job qualification is absolute political loyalty and devotion to Donald Trump.” But he expressed faith in the judicial system during an appearance on “The Weekend,” noting that “right now we have federal courts across the land that are rejecting their various attempts to take over the election process. Nine different federal courts have rejected the claim that the president, by executive order, can compel the states in the union to turn over all of their voter lists to Donald Trump and to the White House.”

The New York Times first reported Norton’s appointment.

The former senior intelligence official, who requested anonymity due to concerns of retaliation, told MS NOW the choice also “signals as clearly as could be that Pulte has been put at ODNI to misuse the awesome power of the U.S. intelligence community to interfere in the upcoming midterm elections.”

Norton, reached by MS NOW by telephone, declined to comment and referred questions to an ODNI spokesperson. The spokesperson declined to comment on Norton but defended Pulte’s tenure.

“Acting Director Pulte and his team are focused on carrying out President Trump’s national security priorities while faithfully executing ODNI’s statutory mission,” the spokesperson told MS NOW. “We are leading the Intelligence Community to provide President Trump with elite, apolitical intelligence that keeps America safe.”

Sen. Bill Cassidy, R-La., appearing on CBS News’ “Face the Nation” Sunday, said his objection to Pulte is “that he used personal information to target a political enemy of the president,” a reference to New York Attorney General Letitia James.

“You should not be using the force of government to crash upon somebody just because the person in charge does not like them or finds them inconvenient. The fact that Bill did that is disqualifying for someone to be the director of national intelligence,” Cassidy said.

Rep. Jim Himes, D-Conn., the ranking Democrat on the House Intelligence Committee, said on Friday that Congress would ensure that the ODNI under Pulte will “report on legitimate foreign threats to elections, not Donald Trump’s imaginary ones.”

Himes warned that, “Trump was explicit when he appointed Bill Pulte to a job he had no qualifications for that he had elections in mind.”

Trump has said in interviews with the news media that he would like to see Pulte shrink the size of the ODNI and investigate election fraud. Pulte’s predecessor, Tulsi Gabbard, participated in investigations in Georgia and Puerto Rico to find proof of Trump’s false claims that the 2020 election was stolen.

Democrats and some former intelligence officials say they worry that Pulte may try to falsely claim that his office has found evidence that foreign governments are secretly funding Democratic candidates in the midterms.

Pulte could falsely claim foreign actors have hacked U.S. voting machines, they say, and altered vote totals in favor of Democrats during the midterms. Or Trump could instruct Pulte to be present if FBI agents seize ballots and election records in November as they did earlier this year in Fulton County, Georgia.

Sen. Mark Warner, D-Va., the ranking Democrat on the Senate Intelligence Committee, warned in a statement on Friday that Pulte should not use his position to spread Trump’s false election conspiracy theories.

“The mission of ODNI is to identify and counter foreign threats, not to import election denialism into the Intelligence Community,” Warner said. “Americans have every reason to fear that this administration is once again eroding the wall between our intelligence agencies and domestic elections.”

David Rohde is the senior national security reporter for MS NOW and a two-time winner of the Pulitzer Prize for International Reporting. Previously he was the senior executive editor for national security and law for NBC News.

The Dictatorship

In Springfield, Ohio, Trump’s rhetoric becomes a grim reality

Published

5 hours ago

June 28, 2026

Blue Light Newsroom

In Springfield, Ohio, Trump’s rhetoric becomes a grim reality

Jun. 27, 2026, 4:07 PM EDT

Having lived with Donald Trump’s infamous and baseless insult against them — “they’re eating the dogs … they’re eating the cats” — Haitian immigrants in Springfield, Ohio, are bracing for a far bigger injury.

More than 10,000 Haitians across Ohio and hundreds of thousands more around the country who had Temporary Protected Status now face the imminent prospect of deportation. The Supreme Court ruled Thursday that the Trump administration can halt those legal protections for Haitians and Syrians and resume forcing them to leave.

Justice Samuel Alito’s opinionfor the court’s Republican-appointed majority curbed the power of courts to review government decisions to terminate protections under the TPS program.

“They side with him on everything that he says or everything that he does, which means there is no check and balance,” said Viles Dorsainvil, a Haitian TPS holder and executive director of the Haitian Support Center in Springfield, a town Trump catapulted into a maelstrom of misinformation about immigrants when he was running to retake the White House in 2024.

“The president has that freeway in front of him to do whatever he wants to do, unfortunately, and most of the time to a minority group of people,” added Dorsainvil, who has lived in the United States since 2020.

In a country rife with political and economic instability, Haitians returning from the U.S. are in danger of being killed or kidnapped, said Dorsainvil’s colleague at the Haitian Support Center, Rose Thamar Joseph.

“There is this perception in Haiti that if you are living here in the United States, you have money, so you are living your good life, so sending people back to Haiti will put them in real danger,” Joseph said.

Staying in the U.S. without legal status creates a different crisis.

“We received calls this morning from people saying that, unfortunately, starting on July 1, they won’t be able to go to work anymore,” Joseph said Friday.

Joseph predicted that families would be separated during the deportation process.

“We know that there will be separation,” she said. “A lot of those parents with TPS … they have kids who were born in the United States, so we know that it will happen, not for everybody, not for all the families, but it will happen,” she said.

The oncoming nightmare for the Haitian community in Springfield was, in many ways, predictable after Trump notoriously targeted them on the debate stage against then-Vice President Kamala Harris in the fall of 2024.

“They are eating the dogs. The people that came in, they are eating the cats. They’re eating – they are eating the pets of the people that live there,” Trump said without a shred of evidence, greatly amplifying an unfounded rumor that had been confined to smaller corners of social media.

That rhetoric continued Trump’s track record of racist languageparticularly when it comes to immigration, including during his first White House stint when he referred during his first to Haiti and other majority non-white nations as “shithole” countries.

Dorsainvil argued that the Supreme Court’s decision Thursday proved his beliefs are institutionalized, calling it “a validation of all those bad rhetorics of the president against us.”

Asked by MS NOW if those with TPS should expect to be deported, White House Deputy Chief of Staff Stephen Miller said, “Well, of course. If you no longer have status in this country, then you’re supposed to be deported.”

Miller, the architect of the administration’s immigration policy, went on to single out the Haitian population by name.

But the outcry against the court’s ruling blurs party lines in Ohio.

“Changing the immigration status of these individuals is not in the best interest of the United States nor Ohio,” Republican Gov. Mike DeWine said.

Springfield’s Republican mayorRob Rue, has denounced Trump’s misinformation about his community as dangerous from the start.

“Many of the individuals affected by this decision are our neighbors, coworkers, business owners, taxpayers, and parents,” Rue said in a statement after the ruling came down. “They contribute to our local economy, support our schools, strengthen our neighborhoods, and have become part of the fabric of Springfield.”

Alex Tabet is a reporter for MS NOW.