The White House has issued an executive order aimed at preventing financial institutions from restricting access to banking services for Americans based on their political or religious beliefs, or lawful business activities. The order, signed by President Donald J. Trump, addresses concerns about “politicized or unlawful debanking,” a term used in the order to describe adverse actions taken by banks against customers due to their beliefs or affiliations.
According to the order, some financial institutions have limited services to individuals and businesses based on political or religious grounds. It also states that following events near the United States Capitol on January 6, 2021, certain government-directed surveillance programs encouraged banks to monitor transactions linked with conservative causes or keywords such as “Trump” and “MAGA.” The administration claims these actions occurred without specific evidence of criminal conduct.
President Trump’s order points out past regulatory efforts such as “Operation Chokepoint,” which sought to reduce banking relationships with lawful businesses that were disfavored by regulators. The order asserts that these practices led to harm for individuals and businesses, including frozen payrolls and reputational damage.
“Such practices are incompatible with a free society and the principle that the provision of banking services should be based on material, measurable, and justifiable risks. Such practices, when wielded to discriminate against customers and businesses in credit transactions due to their religion, are also unlawful under the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.). They further undermine public trust in banking institutions and their regulators, discriminate against political beliefs and free expression of those beliefs, and weaponize a politicized regulatory state,” according to the text of the executive order.
The policy outlined in the document is clear: “It is the policy of the United States that no American should be denied access to financial services because of their constitutionally or statutorily protected beliefs, affiliations, or political views, and to ensure that politicized or unlawful debanking is not used as a tool to inhibit such beliefs, affiliations, or political views. Banking decisions must instead be made on the basis of individualized, objective, and risk-based analyses.”
Federal banking regulators—including agencies like the Small Business Administration (SBA)—are instructed within 180 days to remove references in guidance documents that could lead to politicized debanking. They are also required within 120 days to review past policies for evidence of such practices and take remedial action where necessary.
Additionally, within 60 days of this order’s signing date, SBA will notify all loan-guarantee partner financial institutions about new requirements regarding reinstatement of clients who may have been denied service for political reasons.
The Secretary of Treasury is directed—within six months—to develop a strategy combating politicized debanking across federal agencies. If any institution is found violating relevant laws by denying service on religious grounds after review processes set forth in this directive, matters may be referred for civil action by the Attorney General.
The executive order states it does not alter existing authorities granted by law nor create new enforceable rights but mandates compliance consistent with available appropriations.
President Trump signed this directive at The White House on August 7th.
