President Donald Trump has put affordability at the center of his 2026 domestic agenda, rolling out several high-profile proposals intended to lower everyday costs for Americans. His announcements concentrate on two household burdens—housing and credit-card debt—while also touching on health-care subsidies, utility costs and tariff rebates.
What He Proposed
1. A One-Year 10% Cap On Credit-Card Rates
Mr. Trump called for a temporary cap limiting credit-card interest rates to 10% for one year, saying the rule would take effect on Jan. 20 and that noncompliant companies would be "in violation of the law." Average credit-card rates today are roughly 20% (Bankrate), with many cards carrying higher rates.
“They’ve really abused the public. I’m not going to let it happen,” Mr. Trump said.
Critics warn a strict cap could reduce access to credit for borrowers with lower scores, prompt banks to cut credit limits or raise fees, and require congressional or regulatory action to implement. Possible agencies that might be involved include the Consumer Financial Protection Bureau, though the administration has sought to limit that agency’s authority.
2. Limits On Large Institutional Buyers Of Single-Family Homes
Mr. Trump said he will press Congress to stop large institutional investors—often defined as firms owning more than 1,000 homes—from buying additional single-family houses. While such investors control over 10% of single-family rentals in some local markets, they represent a modest share nationally and have been trimming holdings in many places as returns have cooled.
Experts say most rental homes are owned by small landlords, and banning large buyers would probably do little to shrink rents or raise homeownership substantially, though the proposal has attracted bipartisan attention.
3. $200 Billion In Mortgage-Bond Purchases By Fannie Mae And Freddie Mac
The administration proposed that Fannie Mae and Freddie Mac buy $200 billion in mortgage-backed securities to lower mortgage rates and monthly payments. Mortgage rates did fall about 0.2 percentage points after the announcement, a modest move that may help some buyers but is unlikely to be transformative.
An aerial view of single family homes on August 01, 2025 in Miami, Florida. - Joe Raedle/Getty Images
While the White House could expand the agencies’ portfolios, the measure faces political pushback because it complicates efforts to privatize those companies and would likely draw scrutiny from lawmakers and market participants.
4. $2,000 Tariff Rebate Checks For Lower- And Moderate-Income Americans
Mr. Trump has floated sending $2,000 rebate checks funded by tariff revenue. Interest among the public has been high, but independent estimates (e.g., the Tax Foundation) suggest tariff receipts are far too small to finance such a program at scale. Lawmakers also worry about the inflationary and budgetary consequences of large one-time payments.
Feasibility, Risks And Political Dynamics
Many experts say several proposals would require congressional approval or regulatory action, making them difficult to enact unilaterally. Some ideas—like a rate cap—have attracted unusual cross-party backing from politicians such as Sens. Bernie Sanders and Josh Hawley and Rep. Alexandria Ocasio-Cortez, but mainstream GOP leaders have expressed skepticism.
Economists caution that headline measures can have unintended effects: a strict credit-rate cap could reduce credit availability, mortgage-bond purchases may have limited additional downward impact on rates, and tariff-funded rebates appear unlikely without new revenue sources. Observers describe parts of the agenda as symbolic or politically calculated to show action on prices rather than fixes that quickly alter everyday costs.
Bottom Line
Mr. Trump’s affordability package highlights real public anxieties about housing, credit costs and medicine prices. But whether these proposals would materially ease the affordability squeeze—without unwanted side effects or major political fights—remains uncertain. Implementation would likely require complex legislative or regulatory steps and close attention to trade-offs between short-term relief and longer-term market effects.
Sources: Administration statements, interviews with policy experts, Bankrate data, and analysis from independent fiscal organizations.
