On the campaign trail, President Donald Trump promised to cap credit card interest rates at 10 percent. But since his inauguration, the federal agency that regulates banks has abandoned its support for a state law designed to reduce credit card interest rates, which now average 24 percent and cost American consumers $120 billion every year.

At issue is a 1978 Supreme Court ruling permitting banks to export their home state’s light-touch lending regulations when doing business in states with stricter laws, such as interest rate caps. Since then, credit card companies and big banks have moved their headquarters to Delaware, South Dakota, and Utah — which have no state interest rate caps.

But after the Supreme Court decision, Congress carved out an option for states to set their own interest-rate caps on all banks doing business within their borders. Iowa and Puerto Rico have successfully done so, capping interest rates at 32 percent.

Colorado made a similar move in 2023. Fearing more states following Colorado’s lead, the financial industry filed a lawsuit. The Federal Deposit Insurance Corporation (FDIC) backed Colorado, but a Trump-appointed judge initially blocked the state’s new law. Upon appeal, Trump’s FDIC has now withdrawn the agency’s support, betraying Trump’s anti-interest-rate campaign rhetoric and dealing a blow to the state’s case at the Tenth Circuit Appeals Court.

A new Oregon bill is following in Colorado’s footsteps, where the effort may face similar industry pushback. Congress could simply resolve this states’ rights issue — to the great benefit of consumers — by passing a federal limit on credit card interest rate hikes. Bipartisan legislation recently introduced in both the House and Senate would do just that, capping rates at 10 percent — and forcing Trump to decide whether to fulfill a promise he’s already intent on breaking.