Lafayette Reporter

Senator John Kennedy of Louisiana, a member of the Senate Banking Committee, has collaborated with Senator Kevin Cramer of North Dakota to reintroduce the Fair Access to Banking Act. This legislative effort aims to prevent banks from denying services to law-abiding businesses based on political reasons.

Kennedy stated, "Banks shouldn’t stop customers from accessing accounts or services based on political affiliation or industry. I’m proud to help introduce the Fair Access to Banking Act to make sure financial institutions aren’t working as political activists against law-abiding Americans."

Cramer added, "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. Financial institutions are backed by taxpayers, for crying out loud! They should be obligated to provide services in an unbiased, risk-based manner. The Fair Access to Banking Act ensures that banks provide fair access to services and enacts strict penalties for categorically discriminating against legal industries and individuals."

The bill follows a 2021 initiative by the Trump administration known as the Fair Access Rule. This rule required banks to perform individual risk assessments and cease broad discrimination against customers but was paused under the Biden administration.

Under this new act, banks and credit unions with assets exceeding $10 billion would face penalties if they refuse services without just cause. Additionally, it mandates written explanations when service is denied.

This legislation comes amid concerns about major U.S. banks allegedly blocking access to financial services based on political ideology. In 2020, several large banks announced they would not finance oil and gas drilling in certain areas despite congressional authorization. Similar actions were taken by JPMorgan Chase and Bank of America regarding coal producers and efforts toward net-zero emissions.

The bill has garnered support from numerous senators across various states including Jim Banks (R-Ind.), Marsha Blackburn (R-Tenn.), Ted Cruz (R-Texas), Lindsey Graham (R-S.C.), Ron Johnson (R-Wis.), among others.