WASHINGTON (AP) — Former Presidents Barack Obama and George W. Bush delivered rare open criticism of the Trump administration — and singer Bono recited a poem — in an emotional video farewell Monday with staffers of the U.S. Agency for International Development.
Obama called the Trump administration's dismantling of USAID “a colossal mistake.”
Monday was the last day as an independent agency for the six-decade-old humanitarian and development organization, created by President John F. Kennedy as a peaceful way of promoting U.S. national security by boosting goodwill and prosperity abroad.
Secretary of State Marco Rubio has ordered USAID absorbed into the State Department on Tuesday.
The former presidents and Bono spoke with thousands in the USAID community in a videoconference, which was billed as a closed-press event to allow political leaders and others privacy for sometimes angry and often teary remarks. Parts of the video were shared with The Associated Press.
They expressed their appreciation for the thousands of USAID staffers who have lost their jobs and life's work. Their agency was one of the first and most fiercely targeted for government-cutting by President Donald Trump and his billionaire ally Elon Musk, with staffers abruptly locked out of systems and offices and terminated by mass emailing.
Trump claimed the agency was run by “radical left lunatics” and rife with “tremendous fraud.” Musk called it “a criminal organization.”
Obama, speaking in a recorded statement, offered assurances to the aid and development workers, some listening from overseas.
"Your work has mattered and will matter for generations to come,” he told them.
Obama has largely kept a low public profile during Trump’s second term and refrained from criticizing the monumental changes that Trump has made to U.S. programs and priorities at home and abroad.
“Gutting USAID is a travesty, and it’s a tragedy. Because it’s some of the most important work happening anywhere in the world,” Obama said. He credited USAID with not only saving lives, but being a main factor in global economic growth that has turned some aid-receiving countries into U.S. markets and trade partners.
The former Democratic president predicted that ”sooner or later, leaders on both sides of the aisle will realize how much you are needed."
Asked for comment, the State Department said it would be introducing the department’s foreign assistance successor to USAID, to be called America First, this week.
“The new process will ensure there is proper oversight and that every tax dollar spent will help advance our national interests,” the department said.
USAID oversaw programs around the world, providing water and life-saving food to millions uprooted by conflict in Sudan, Syria, Gaza and elsewhere, sponsoring the “Green Revolution” that revolutionized modern agriculture and curbed starvation and famine, preventing disease outbreaks, promoting democracy, and providing financing and development that allowed countries and people to climb out of poverty.
Bush, who also spoke in a recorded message, went straight to the cuts in a landmark AIDS and HIV program started by his Republican administration and credited with saving 25 million lives around the world.
Bipartisan blowback from Congress to cutting the popular President’s Emergency Plan for AIDS Relief, known as PEPFAR, helped save significant funding for the program. But cuts and rule changes have reduced the number getting the life-saving care.
“You’ve showed the great strength of America through your work — and that is your good heart,’’ Bush told USAID staffers. “Is it in our national interests that 25 million people who would have died now live? I think it is, and so do you," he said.
Former Liberian President Ellen Johnson-Sirleaf, former Colombian President Juan Manual Santos and former U.S. Ambassador to the U.N. Linda Thomas-Greenfield also spoke to the staffers.
So did humanitarian workers, including one who spoke of the welcome appearance of USAID staffers with food when she was a frightened 8-year-old child in a camp for Liberian refugees. A World Food Program official vowed through sobs that the U.S. aid mission would be back someday.
Bono, a longtime humanitarian advocate in Africa and elsewhere, was announced as the “surprise guest,” in shades and a cap.
He jokingly hailed the USAID staffers as “secret agents of international development” in acknowledgment of the down-low nature of Monday’s unofficial gathering of the USAID community.
Bono spoke passionately as he recited a poem he had written to the agency and its gutting. He spoke of children dying of malnutrition, in a reference to people — millions, experts have said — who will die because of the U.S cuts to funding for health and other programs abroad.
“They called you crooks. When you were the best of us,” Bono said.
FILE - Former President George W. Bush attends a baseball game, May 15, 2025, in Arlington, Texas. (AP Photo/LM Otero, File)
FILE - Former President Barack Obama speaks at the Obama Foundation Democracy Forum, Dec. 5, 2024, in Chicago. (AP Photo/Erin Hooley, File)
FILE - Bono poses for photographers at the 78th international film festival, Cannes, southern France, May 17, 2025. (Photo by Joel C Ryan/Invision/AP, File)
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.
President Donald Trump arrives on Air Force One at Palm Beach International Airport, Friday, Jan. 9, 2025, in West Palm Beach, Fla. (AP Photo/Julia Demaree Nikhinson)
FILE - Visa and Mastercard credit cards are shown in Buffalo Grove, Ill., Feb. 8, 2024. (AP Photo/Nam Y. Huh, File)
