Source: United States Senator Kevin Cramer (R-ND)
WASHINGTON – U.S. Senator Kevin Cramer (R-ND) led 36 of his Republican colleagues in reintroducing the Fair Access to Banking Act. Even more industry stakeholders and Senators have supported the bill this Congress compared with last.
“There is no place in our society for discrimination, and big banks and financial institutions are no exception. The Biden administration and their liberal base are weaponizing the financial system to defund, debank, or discredit industries they do not like,” said Senator Cramer. “It is fundamentally unfair. Our bill imposes serious consequences for discriminatory decisions or de facto bans of legal industries.”
Senator Cramer’s legislation is in response to United States banks and financial institutions increasingly using their economic standing to categorically exclude the fossil energy and firearms industries, among others, from accessing services. It protects fair access to banking for any legally compliant person who meets the qualifying criteria established by empirical data. Learn more here.
North Dakota Stakeholders
“The Lignite Energy Council thanks Senator Cramer for his work on ensuring that companies have access to the full range of financial products and services without being subjected to discriminatory policies or practices,” said Jason Bohrer, President and CEO of Lignite Energy Council. “This bill is an important step in ensuring that companies and individuals can access needed capital to build a stronger economy without interference from misguided, uniformed and unelected activists who are attempting to hijack the financial system.”
“This bill gives our producers the ability to provide affordable, reliable, and secure American energy resources to our country and the world,” said Ron Ness, President of the North Dakota Petroleum Council. “The oil and natural gas industry need fair and non-discriminatory access to capital.”
National Stakeholders
“This legislation is vital to the financial health of the very industries that helped our country – indeed, the world – weather the recent energy and supply chain crises that followed both Russia’s invasion of Ukraine and the pandemic. We kept the lights on and bills manageable for American households when the economy was struggling from record natural gas prices, and we supplied countries around the world with both fuel and steelmaking coal to fill the gaps left by Russia. As a steadfast foundation of the U.S. economy, energy dependent communities across the country, and our industry deserve fair, unbiased financial decision making from our financial institutions,” said Rich Nolan, President and CEO of National Mining Association.
“Open access to credit markets is a critical component to a functioning, free-market economy. That is truer now more than ever as the United States continues efforts to emerge from the pandemic lockdown. American energy businesses should have the same access to capital markets as all other economic sectors in the U.S. Smart legislation focused on protecting the fundamental principles of market access and competitiveness has become necessary because of efforts to constrain capital for oil and natural gas production as part of larger actions to cripple these significant components of America’s economy. This legislation takes an important step to further protect American markets from those seeking to undermine an industry which employs hundreds of thousands of men and women who go to work every day to provide for their families and provide the critical energy and products which make modern life possible,” said IPAA President and CEO Jeff Eshelman.
“Senator Cramer’s ‘Fair Access to Banking’ legislation is a bold and principled stand that will put an end to ‘woke’ financial discrimination,” said Lawrence G. Keane, Senior Vice President and General Counsel of NSSF, The Firearm Industry Trade Association. “This legislation will ensure financial institutions make decisions to offer services to lawful businesses based on verifiable financial data and not the shifting political or social views of banking executives that are unaccountable to the American voter. For too long, banking institutions have arbitrarily denied services to legal and Constitutionally-protected businesses such as those in the firearm industry, to advance a politically-driven agenda that would deny critical financial services to the industry that provides the means for law-abiding citizens to exercise their Second Amendment rights. The firearm industry thanks Senator Cramer for his work to guarantee all legal and regulated American companies have fair and uniform access to financial services as required by Federal law.”
“Any lawful business that wishes to access federally-secured banking services should be evaluated based upon the creditworthiness of the business, not the political pressures of the day. Sen. Cramer’s Fair Access to Banking Act would provide a crucial safeguard against such discrimination and ensure federal banking protections and programs are accessible by all who legally qualify. We applaud Sen. Cramer and his colleagues for their leadership on this important issue,” said Jason Ouimet, Executive Director of the National Rifle Association’s (NRA) Institute for Legislative Action.
“We applaud Senator Cramer’s efforts to end banking discrimination against legally operating businesses. It’s unfortunate that misleading political activism has been allowed to impact long-standing banking relationships. These de-banking efforts are based on deliberately false and politically-motivated mischaracterizations. Our members have been trusted service providers to federal and state governments for over three decades, under Democratic and Republican Administrations, and in that time, we have never played a role in enacting or advocating for or against criminal justice or immigration laws and policies. Quantitative analysis and careful risk management should always be the standard financial institutions use when deciding whether or not to provide banking services to customers,” said Alexandra Wilkes, Day 1 Alliance.
“NAW members distribute nearly every single possible legal product to customers across the nation. If banks are permitted to change their lending policies to discriminate based on personal or public opinion about certain industries, it will negatively impact entire product-line distributors and the general public. Lawful businesses must be entitled to fair access to all financial services under the law, regardless of political controversies. We thank Senator Cramer and the coalition for their efforts to find commonsense solutions to end banking discrimination against legal and regulated American businesses once and for all,” said Seth Waugh, Associate Vice President of Government Relations for the National Association of Wholesaler-Distributors.
Congressional Support
“Financial institutions should extend credit and offer services based on sound underwriting, risk and reward – not political beliefs. The Fair Access to Banking Act would prevent this biased practice and hold banks and credit unions accountable for failure to comply,” said Senator Boozman.
“When banks and financial service providers pick and choose which industries they’ll work with based purely on politics, it hurts the hardworking men and women across our country who are employed by those industries,” said Senator Capito. “This legislation would ensure employers and workers in the energy or firearms manufacturing sectors are protected from political activism by financial institutions. I’m proud to join my colleagues in introducing a commonsense bill that provides the protection and access they deserve.”
“Big banks shouldn’t be able to discriminate against law-abiding businesses because of political convenience,” said Senator Cornyn. “This bill will protect Americans from ‘cancel culture’ lending practices that are based on politics and not on the borrower’s creditworthiness.”
“The intentional discrimination against lawful industries by the financial services sector is disturbing,” said Senator Crapo. “Individuals and companies complying with federal and state law must have full access to credit services based on their creditworthiness rather than social or political pressure.”
“Political bias has no place in the financial services industry,” said Senator Johnson. “Our country was founded on economic freedom and opportunity, which should never be politicized. Ensuring banks base their business decisions around impartial analysis rather than political discrimination is essential to protecting our foundational, free-market principles. This commonsense legislation will protect hardworking Wisconsinites from political targeting and hold big banks accountable.”
“Law-abiding Americans should have access to financial services without threat from woke political posturing. The Fair Access to Banking Act would ensure that banks rely on impartial risk assessments—rather than politicized discrimination—when providing their services. This bill would stop banks from becoming advocacy groups that ignore their clients’ constitutional protections and business interests,” said Senator Kennedy.
“There is an alarming trend of federal agencies, corporations and financial institutions caving to the political demands of liberal activists and forcing environmental, social, and governance (ESG) agendas on the public at large. When creditors put their thumb on the scale of their customer’s business decisions or choose which industries are socially acceptable, Americans conducting lawful business, such as our agriculture and energy producers, feel the pain and we all suffer. This legislation would stop it,” said Senator Marshall.
“We cannot allow banks to play politics with law-abiding businesses,” said Senator Mullin. “It’s un-American. Our economy was built on the foundation of a free market and competition — it’s not up to our financial institutions to pick winners and losers. This Act will codify Trump-era protections for businesses in Oklahoma like our energy producers and gun manufacturers and stop liberals from pushing their radical agenda where it does not belong.”
“Financial service providers should never be allowed to ban law-abiding businesses just because they think it’s politically expedient,” said Senator Tillis. “This legislation is an important step in preventing discrimination and protecting fair access to financial services.”
“Big banks are using political ideologies as a reason to deny access to capital. This is pushing our country further away from the principles that have fueled the American dream since our country’s founding. To prevent law-abiding Idahoans from being victimized for their viewpoints, with Senators Cramer and Crapo, we introduced the Fair Access to Banking Act, which will prevent banks from discriminating against entire industries for political prejudices,” said Senator Risch.
“Politically motivated de-banking has no place in our country. Banks should use impartial risk standards to determine credit worthiness, not arbitrary political or ideological concerns. There are going to be consequences if these big banks want to win favor with woke activists at the expense of hardworking Americans,” said Senator Rubio.
“The United States is a nation founded on free-market principles of fair and equal access to opportunity. We cannot allow financial service providers to unfairly tip the scales and arbitrarily discriminate against American businesses, like firearms companies. Our bill protects free market values and makes it clear that discrimination by banks and financial institutions against legal, law-abiding businesses will not be tolerated,” said Senator Rick Scott.
“Big banks are increasingly bowing to pressure from activists who oppose loans being given to fossil fuel companies and other businesses that don’t align with the left’s agenda. Banks should make lending decisions based solely on economic factors. It’s absurd to think financial institutions should be allowed to weaponize their lending power to advance partisan priorities. Financial discrimination of any kind is un-American and unacceptable, and woke CEOs should be prepared to answer to Congress for their discriminatory actions,” said Senator Tuberville.
The full list of Senate cosponsors is as follows: Katie Britt (R-AL), Tommy Tuberville (R-AL), Dan Sullivan (R-AK), John Boozman (R-AR), Tom Cotton (R-AR), Marco Rubio (R-FL), Rick Scott (R-FL), Mike Crapo (R-ID), Jim Risch (R-ID), Mike Braun (R-IN), Joni Ernst (R-IA), Roger Marshall (R-KS), Jerry Moran (R-KS), Bill Cassidy (R-LA), John Kennedy (R-LA), Cindy Hyde-Smith (R-MS), Roger Wicker (R-MS), Eric Schmitt (R-MO), Steve Daines (R-MT), Deb Fischer (R-NE), Pete Ricketts (R-NE), Thom Tillis (R-NC), John Hoeven (R-ND), J.D. Vance (R-OH), James Lankford (R-OK), Markwayne Mullin (R-OK), Lindsey Graham (R-SC), Tim Scott (R-SC), Marsha Blackburn (R-TN), Bill Hagerty (R-TN), John Cornyn (R-TX), Ted Cruz (R-TX), Shelley Moore Capito (R-WV), Ron Johnson (R-WI), John Barrasso (R-WY), and Cynthia Lummis (R-WY). The group makes up over one-third of the Senate.