WASHINGTON—Credit union trade groups entered the week in Washington closely monitoring developments after President Trump’s proposal for a nationwide 10% cap on credit card interest rates, even as Congress returns to work on funding, financial services reform, and digital asset legislation.
Both the Defense Credit Union Council and America’s Credit Unions say the rate-cap proposal poses an immediate threat to consumers credit unions disproportionately serve, while a fast-moving legislative agenda could shape the industry’s operating landscape for years.
DCUC President and CEO Anthony Hernandez said the defense-focused trade group mobilized within hours of the President’s announcement, warning the cap could sharply limit access to credit for junior enlisted servicemembers, young officers with student loan debt, and federal workers already strained by a potential shutdown.
Anthony Hernandez
Hernandez said DCUC began responding within hours, providing comments to the press Friday night and continuing through early Saturday morning. By Saturday, the organization was drafting a formal letter to President Trump, followed by outreach to the media, the House Financial Services Committee, and the Senate Committee on Banking, Housing, and Urban Affairs. DCUC also circulated a CUToday.info op-ed by Chief Advocacy Officer Jason Stverak and developed talking points for member credit unions ahead of a busy start to the workweek.
Those talking points were distributed midday Sunday, and DCUC has already seen favorable feedback and engagement from members contacting their congressional offices, Hernandez said.
DCUC is also closely monitoring Senator Roger Marshall’s involvement, particularly as attention shifts toward the Credit Card Competition Act, which Hernandez described as a related and potentially more far-reaching legislative effort. While the President has indicated he wants the 10% cap in place by Jan. 20, Hernandez said any lasting change will likely require congressional action and could face legal challenges.
Hernandez warned that a flat 10% cap would be especially harmful to junior enlisted servicemembers, young officers carrying student loan debt, and federal workers already affected by the government shutdown, limiting access to credit and creating broader unintended consequences.
DCUC Chief Advocacy Officer Jason Stverak said the trade group is already seeing indications that Congress may move toward legislative action on credit card interest rates, potentially blending elements of the (Josh) Hawley-(Bernie) Sanders 10% rate cap with President Trump’s proposed interest rate ceiling—and possibly even bringing in the (Roger) Marshall-(Richard) Durbin Credit Card Competition Act (CCCA).
“Moving ahead the Marshall-Durbin bill, the Hawley-Sanders a 10% rate cap legislation that's been introduced, and even the CCCA are all merging together in a kind of a Frankenstein-type discussion we may have to deal with on Capitol Hill. It’s very fluid right now”
Stverak added, too, that DCUC has heard reports suggesting Marshall is exploring ways to attach the Credit Card Competition Act to digital assets legislation currently advancing through the Senate Banking Committee and the Senate Agriculture Committee.
“DCUC is going to be hyper vigilant on these issues,” Stverak said.
ACU Sends Email To Congress
In an email message to Capitol Hill lawmakers, America’s Credit Unions Monday urged Congress to reject any proposals for a flat 10% cap on credit card interest rates, arguing that such a price control would undermine affordability rather than improve it.
ACU President and CEO Scott Simpson warned that roughly 47 million subprime and near-prime consumers—about one-third of all cardholders—could lose access to mainstream credit, including many military members, veterans, farmers, and other working Americans. Citing Federal Reserve data, ACU emphasized that credit cards function as a critical financial safety net for households lacking emergency savings and that restricting access could sharply reduce consumer spending, which drives about 70% of U.S. economic activity.
Scott Simpson
The email also highlighted credit unions’ existing role as affordability leaders, noting they already offer significantly lower average credit card rates than banks and often serve borrowers others will not. Rather than imposing an arbitrary cap, ACU encouraged lawmakers to pursue targeted, data-driven solutions such as financial education, regulatory relief, expanded nonprofit debt counseling, and broader access to lower-cost credit options. ACU concluded that a 10% cap would push vulnerable consumers toward riskier alternatives while harming small businesses and the broader economy, and said it remains firmly opposed to any 10% cap proposal.
As CUToday.info reported, ACU also sent a letter to Trump Sunday.
At the same time, ACU Senior Vice President of Advocacy Greg Mesack said Congress is pressing ahead this week with bipartisan government-funding talks, digital-asset market-structure markups in the Senate, and broader financial-services reform in the House—developments that credit unions are actively shaping as they prepare for possible legislative action on credit card rates, renewed shutdown risk, and regulatory parity battles on Capitol Hill.
During a call with the media Monday, Mesack said the industry is deeply concerned about President Trump’s proposal to impose a 10% nationwide cap on credit card interest rates by Jan. 20. Mesack said America’s Credit Unions is actively engaging Congress, the Administration, Treasury, and regulators, arguing that the proposal could harm consumers, small businesses, and the broader economy while undermining credit unions’ mission to serve financially vulnerable households.
Mesack added that Congress returned this week showing renewed momentum on several major fronts, including bipartisan progress on government funding and community development priorities. A draft House Appropriations package would fully fund the Community Development Financial Institutions (CDFI) Fund at $324 million—matching last year’s level and Senate targets—despite repeated presidential proposals to zero it out.
Mesack said the funding underscores congressional recognition that CDFIs are critical to local economies, underserved communities, and overall economic stability.
Greg Mesack
On financial services policy, Mesack said Senate Banking and Senate Agriculture committees are moving toward markups of long-negotiated market-structure legislation governing digital assets and regulatory oversight by the SEC and CFTC. While timing could slip slightly, he said America’s Credit Unions is optimistic and has focused heavily on ensuring credit unions receive regulatory parity, similar to provisions secured earlier this year in stablecoin legislation. The goal, he said, is to future-proof the credit union charter so credit unions can compete on equal footing as digital assets and payments evolve.
Mesack also pointed to broader financial-services reform efforts led by House Financial Services Chair French Hill, noting that credit unions are actively engaged to ensure their priorities are reflected. He said lawmakers increasingly view “community banking” as inclusive of credit unions, particularly given data showing credit unions are often the last financial institution serving small or rural communities. America’s Credit Unions, including Simpson, has been directly involved in discussions as these reform packages move toward potential markups later this month.
Another Shutdown?
DCUC’s Stverak Monday, during a call with the media, addressed the possibility of another government shutdown at the end of January. He said DCUC held a call with its Military Advocacy Committee and credit union leaders last Thursday.
“And the possible Jan. 30 shutdown was one of the primary issues we discussed. We reflected on what credit unions did during the 40-day-plus government shutdown in October and November and emphasized that we must be prepared to do it again if necessary,” Stverak said. “Our credit unions are ready to step up if Congress fails to act, ensuring servicemembers and their families are taken care of when the government shuts down. At the same time, we continue to aggressively push for Congress to act before we reach that cliff again.”
Stverak noted there is broad bipartisan support for legislation that guarantees pay for the military and the Coast Guard during a government shutdown.
“Multiple bills already exist,” he said. “They should be passed and taken off the table so that military members, their families, and veterans are no longer used as political leverage in Washington.”
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