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Three states have now enacted legislation that protects Americans against financial discrimination based on political or religious beliefs and ensures greater transparency in banking practices.
Idaho Gov. Brad Little, R, signed the Transparency in Financial Services Act into law last week, making Idaho the latest state to implement protections against financial institutions that discriminate by “debanking” clients based on their political or religious views.
With this law, Idaho follows in the footsteps of Tennessee and Florida, becoming only the third state to enact such protections.
The issue gained national attention after U.S. Bank abruptly terminated the long-standing account of the Constitution Party of Idaho without explanation last year — a move that some believe is part of a broader trend by major banks, such as JPMorgan Chase and Bank of America, in closing accounts based on ideological differences.
“Big Banks, which control services vital to our economy, are just as threatening to freedom as Big Brother,” said Jeremy Tedesco, senior counsel and senior vice president of corporate engagement for Alliance Defending Freedom (ADF). “Everyone needs access to basic financial services, regardless of political or religious beliefs.”
He noted that states “have the duty to protect their citizens from financial discrimination, especially from nationally chartered banks that function as quasi-government entities.”
ADF has been actively working to prevent “debanking” through initiatives like the Viewpoint Diversity Score Business Index, which evaluates financial institutions’ fairness policies.
These efforts have influenced industry practices, with Chase Bank recently agreeing to modify its Code of Conduct to prohibit discrimination based on religion or political beliefs. The revised policy, which Chase has committed to publishing by July, extends protections to customers, employees, suppliers, and contractors.
In addition to advocating for state-level protections, ADF has partnered with Inspire Investing and the American Conservative Values ETF to introduce a shareholder proposal at U.S. Bank. The proposal calls for greater transparency regarding the bank’s sudden account closures, with shareholders set to vote on the measure during the company’s annual meeting this spring.
“No one should be denied access to financial services simply because of their beliefs,” said Matt Sharp, ADF senior counsel and director of the ADF Center for Public Policy, adding, “When financial institutions become too big to fail, they must also be held accountable for their actions.”
The rise of debanking has been a public issue since at least 2021, when Chase Bank denied payment processing services to conservative organizations Defense of Liberty and Arkansas Family Council, contributing to a growing pattern of politicized de-banking by major financial institutions.
In 2022, Chase closed the account of former U.S. Ambassador Sam Brownback’s National Committee for Religious Freedom without providing a reason. In response, 19 state attorneys general and 14 state financial officers sent letters in 2023 demanding that Chase explain its account closures. Financial advisor David Bahnsen also introduced a shareholder resolution urging the bank to increase transparency regarding its account policies.
By the end of the year, Chase eliminated its payment processor WePay’s “social risk” policy, which had included vague terms such as “hate” and “intolerance” that allowed employees to deny or terminate accounts based on customers’ personal beliefs.
Earlier this month, the Trump Organization initiated legal action against Capitol One, one of the country’s largest banks. President Donald Trump asserts that he was a victim of debanking, alleging that the financial institution shut down hundreds of his organization’s accounts following the events of January 6, 2021, when some of his supporters breached the Capitol.
In addition to Idaho, two other states have similar anti-debanking bills in progress.
Montana’s proposed “Equality in Financial Services Act” seeks to promote greater transparency and accountability among financial institutions by requiring them to disclose specific reasons when denying or terminating financial services for individuals. The act prohibits financial institutions from engaging in discriminatory practices against protected First Amendment views, and establishes penalties for violations, including allowing individuals to pursue civil action for damages.
The proposed “Equality in Financial Services Act” in South Carolina calls for similar transparency.
It is blatantly un-American to cancel a customer based on their political and religious beliefs or associations.
In considering this situation, however, it’s important to understand the larger context within which much of this debanking occurred over the last four years.
Cancelling conservative customers was a form of virtue signaling that many banks pursued to try to make themselves look like “good” corporate citizens to the left-wing ideologues then in power — even as many of them, including JPMorgan Chase and Capital One, were being investigated and ordered to pay massive fines for engaging in financial crimes, including fraud and failing to “stem the tide” of trillions of dollars of “dirty money” flowing through global financial systems from drug traffickers, money laundering operations, terrorist organizations, and other anonymous clients.
The passage of Idaho’s Transparency in Financial Services Act is essential to safeguarding the fundamental freedoms that concern its residents, and other states should follow suit with similar legislation and safeguards for all banking customers.
That’s because financial access is not just an economic issue but a matter of justice, fairness, and protecting God-given rights. When financial institutions wield the power to silence or punish individuals based on their religious beliefs and political convictions, they undermine the principles of liberty and equality that are foundational to a just society.
The growing trend of debanking is a warning that Americans must remain vigilant and proactive in ensuring that financial services are not weaponized against customers simply for holding dissenting views. And the best way to do that is by remaining informed, supporting ethical financial institutions, and taking a stand against companies that engage in unjust practices.
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