WASHINGTON – U.S. Senator Kevin Cramer (R-ND), a Senate Banking Committee member, today highlighted the support from outside groups for the Fair Access to Banking Act, a bill with 27 cosponsors he introduced last week to prevent discrimination by banks and financial service providers against constitutionally-protected industries and law-abiding businesses.

“I appreciate the strong support from a wide array of stakeholders for the Fair Access to Banking Act,” said Senator Cramer. “Financial service providers do not have the right to circumvent the Constitution or the law to create de-facto bans on legally-compliant businesses like energy producers or firearms manufacturers when they believe it is politically convenient. Our legislation makes it illegal to do so and imposes serious consequences on those who choose to violate the law.” 

Senator Cramer’s bill protects fair access to financial services and ensures providers operate in a safe and sound manner. It builds off the Trump Administration’s Fair Access Rule and the Freedom Financing Act which Senator Cramer introduced last Congress. Learn more here.

Energy

The need for Senator Cramer’s legislation is driven by the recent actions of some of the largest United States banks who are using their economic standing to discriminate against energy producers. Last year, five of the country’s largest banks announced they will not provide loans or credit to support oil and gas drilling in the Arctic National Wildlife Refuge even though Congress explicitly authorized it. In the fall, JP Morgan Chase declared it would refuse financial services to coal producers, and Bank of America began a politically-motivated effort to achieve net-zero greenhouse gas emissions from its financing activities by 2050, an effort directly targeting producers of reliable American energy. Several leading groups representing energy producers have now offered their support for Senator Cramer’s bill.

“American energy businesses should have the same access to capital markets as all other economic sectors in the U.S.,” said Barry Russell, President and CEO of Independent Petroleum Association of America. “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 in the U.S. who go to work every day to provide for their families and provide the critical energy and products which make modern life possible.”

“The Lignite Energy Council supports Senator Cramer’s efforts to stop discriminatory financial practices as outlined in the Fair Access to Banking Act,” said Jason Bohrer, President and CEO of the Lignite Energy Council. “In today’s political world, coal-based electricity is considered out-of-favor, and this attitude is being mirrored by insurance and banking institutions who are asking for a premium to insure coal-based generators and might not even consider loaning money to companies engaged in the coal business. Legislation and administrative action should base insurance costs on actual physical risk and not on environmental social governance goals would help keep utility bills affordable and should promote fair banking procedures. The lignite industry is thankful to Senator Cramer for leading legislation which will ensure insurance is available at a reasonable cost to companies who generate coal-based power.”

“The availability of credit is an issue for all industries right now, particularly a year into a global pandemic that has impacted all, and any additional restrictions only compound the already unprecedented challenges we’re all facing,” said Rich Nolan, President and CEO of National Mining Association. “Smart legislation like this is needed to ensure that financial institutions make lending decisions based on an impartial, fact-based analysis and stop financial institutions from unfairly picking winner and losers among the industries that are the backbone of the U.S. economy. Our industry has never failed to deliver for the American people and our economy in good times and in bad, and we deserve fair, unbiased financial decision making.”

Second Amendment

Discrimination by financial service providers also extends to industries protected by the Second Amendment, with banks like Capital One including “ammunitions, firearms, or firearm parts” in its prohibited payments section, and payment services like Apple Pay and PayPal denying their services for transactions involving firearms or ammunition. Second Amendment advocacy leaders are offering their endorsement for Senator Cramer’s legislation.

“Senator Cramer’s ‘Fair Access to Banking’ bill is a crucial, timely piece of legislation that will ensure financial institutions, when deciding whether or not to offer services to fully legal and lawful businesses, make such decisions based upon verifiable financial data and not on the political or social views of a few bank executives,” said Lawrence G. Keane, Senior Vice President and General Counsel for the National Shooting Sports Foundation. “It is unacceptable that banking institutions increasingly think they can arbitrarily deny services to legal, constitutionally protected businesses such as those in the firearm industry, which gainfully employs hundreds of thousands of Americans and helps guarantee the right to keep and bear arms. 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.”

"Financial institutions should not be allowed to refuse services to the firearms industry for political reasons, and at the same time, enjoy federal protections and taxpayer bailouts for their own industry. Senator Cramer’s Fair Access to Financial Services Act would be an essential safeguard against such discrimination and exclusionary politics in an increasingly politicized economy.  We thank Senator 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.

Widespread Support

Support for Senator Cramer’s legislation extends beyond these two industries, as the bill would protect fair access to banking for any lawfully-compliant person who meets the qualifying criteria established by empirical data for their services.

“AMOA fully supports the Fair Access to Financial Services Act not only because it ensures big banks and financial institutions do not discriminate against lawful businesses, it also requires a covered bank to provide written justification as to why services have been denied and not solely based on reputational risk to the depository institution,” said Amusement and Music Operators Association President Greg Trent. 

“We applaud the coalition’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 Spokesperson.

“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.