Pulaski Times

U.S. Senators John Boozman and Kevin Cramer have introduced the Fair Access to Banking Act, aiming to protect legal industries from being denied financial services due to political or reputational biases. The proposed legislation mandates that decisions regarding lending and financial services be grounded in impartial, risk-based analysis.

"Financial services are vital to the success of all businesses and should be based on sound data and risk management –– not as a means to target certain industries or political issues," stated Senator Boozman. He emphasized the importance of preventing unfair practices that block lawful businesses from accessing banking due to their political beliefs or affiliations.

Senator Cramer criticized what he described as a strategy by progressives to use banks as tools for activist goals after failing to ban entire industries directly. "Financial institutions are backed by taxpayers, for crying out loud! They should be obligated to provide services in an unbiased, risk-based manner," he said. The act aims to ensure fair access to banking services while imposing penalties on institutions that discriminate against legal entities.

The bill targets banks and credit unions with over $10 billion in assets, penalizing them if they refuse service based on non-financial considerations. It also requires these institutions to justify any denial of service in writing and imposes penalties such as disqualification from discount window lending programs or civil fines up to $10,000 per violation.

The Fair Access Rule, initially introduced during President Trump's administration but paused under President Biden's administration, serves as the foundation for this bill. The rule required financial institutions to make individual risk assessments rather than broad judgments about entire industries.

The legislation has garnered support from several organizations including the National Shooting Sports Foundation, National Rifle Association, National Cattlemen’s Beef Association, among others.

A significant number of U.S. Senators have cosponsored the bill alongside Boozman and Cramer, indicating strong backing within Congress for this initiative.