Peace Garden News

U.S. Senator Kevin Cramer has reintroduced the Fair Access to Banking Act, aimed at protecting legal industries from being denied financial services by banks. The legislation seeks to ensure that decisions made by banks and financial institutions are based on impartial, risk-based analysis rather than political or reputational biases.

Cramer expressed concerns over what he describes as a practice of "debanking," where banks categorically exclude certain legal industries, including firearms, ammunition, cryptocurrency, federal prison contractors, and energy producers. He stated: “When progressives failed at banning these entire industries, what they did instead is they turned to weaponizing banks as sort of a backdoor to carry out their activist goals.” He emphasized that financial institutions should provide services in an unbiased manner since they are backed by taxpayers.

The proposed legislation targets banks and credit unions with more than $10 billion in assets. It requires them to provide written justifications for denying services and imposes penalties for non-compliance. These penalties could include disqualification from discount window lending programs or civil fines up to $10,000 per violation.

The bill draws inspiration from the Fair Access Rule introduced during President Trump's administration. This rule mandated individual risk assessments by financial institutions rather than broad exclusionary policies against specific industries or customers. Although this rule was paused by the Biden administration in 2021, Cramer's bill aims to codify similar protections into law.

Cramer’s efforts have gained traction over time with growing support each congressional session. At the state level, Florida and Tennessee have passed similar laws while other states have introduced comparable legislation.

Several organizations endorse the Fair Access to Banking Act, including the National Shooting Sports Foundation and the National Rifle Association among others.

A number of U.S. Senators have co-sponsored Cramer's bill such as Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), Ted Cruz (R-TX), Lindsey Graham (R-SC), Rick Scott (R-FL), and many others.