Central Louisiana News

U.S. Senators Bill Cassidy and Kevin Cramer, along with 39 Republican colleagues, have reintroduced the Fair Access to Banking Act. This legislation aims to ensure fair access to financial services and requires that lending decisions be based on impartial risk analysis rather than political or reputational factors.

Senator Cassidy stated, "It’s wrong for banks to single out individuals or industries for political and social reasons." He emphasized the importance of fairness for essential employers in Louisiana, such as those involved in oil and gas development.

Senator Cramer expressed concerns about banks being used as tools for activist goals, saying, "Financial institutions are backed by taxpayers... They should be obligated to provide services in an unbiased, risk-based manner."

The act targets discriminatory practices known as debanking, where banks exclude legal industries from financial services. Affected sectors include firearms, ammunition, crypto, federal prison contractors, and energy producers. The bill imposes penalties on large banks and credit unions that refuse business with legally compliant individuals or entities.

The legislation builds upon President Trump's Fair Access Rule from his first administration. It seeks to codify protections against broad exclusions of entire industries by financial institutions. The Biden administration paused this rule's implementation in early 2021.

Examples of exclusionary practices cited include Citigroup's policy against financing coal plants and major banks' refusal to support Arctic oil drilling projects. These actions have been criticized as targeting conservatives and legal industries protected by the Second Amendment.

The bill has garnered support from numerous senators including Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), among others. U.S. Representative Andy Barr introduced similar legislation in the House of Representatives.

State-level support is also evident with Florida and Tennessee passing Fair Access laws. Similar bills have been introduced in several other states including Louisiana and Arizona.

Endorsements for the Fair Access to Banking Act come from organizations such as the National Shooting Sports Foundation, National Rifle Association, National Cattlemen’s Beef Association, The Digital Chamber, Blockchain Association, Independent Petroleum Association of America among others.