Central ND News

U.S. Senator Kevin Cramer has reintroduced the Fair Access to Banking Act, aiming to prevent banks from excluding legal industries from financial services. This legislation addresses what is known as "debanking," where banks refuse to lend or provide services to certain sectors such as firearms, ammunition, crypto, federal prison contractors, and energy producers.

Cramer, a member of the Senate Banking, Housing, and Urban Affairs Committee, emphasized that the bill requires lending decisions to be based on impartial risk assessments rather than political biases. A similar bill was introduced in the House by U.S. Representative Andy Barr.

"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," said Cramer. He added that financial institutions should offer services without bias since they are taxpayer-backed.

The legislation targets banks and credit unions with over $10 billion in assets if they refuse business with legally compliant individuals. It also prevents payment card networks from discriminating based on political considerations. Banks must justify any denial of service in writing and face penalties for non-compliance.

The act builds on President Trump's Fair Access Rule, which required individual risk assessments by financial institutions. The Biden administration paused this rule's implementation in 2021.

Cramer's proposal responds to actions by U.S. banks allegedly discriminating against conservative sectors. For instance, Citigroup's policy in 2018 withheld financing for coal plants, and several major banks refused loans for Arctic oil drilling projects despite congressional approval.

Since its initial introduction, support for the Fair Access to Banking Act has grown across Congress and states like Florida and Tennessee have passed similar laws. The bill has backing from various organizations including the National Rifle Association and the North Dakota Petroleum Council.

The legislation is cosponsored by numerous senators including Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), among others.