Politicized debanking must end

Politicized debanking is cancel culture at its worst. It is an ill-disguised attempt by big banks and big government to control and punish people’s views. And while the practice can affect anyone, most often it’s been used to target conservatives and people of faith.

The victims have been elected officials, a former ambassador, scientists, journalists, and non-profits. Even President Donald Trump has alleged that he was debanked following his first term in office. If it can happen to a former president, it can happen to anyone.

Recognizing this danger to our civil liberties, the president issued an executive order last month titled “Guaranteeing Fair Banking for All Americans.” The order instructs federal agencies to ensure that banks cannot discriminate against customers because of their political or religious beliefs. It also eliminates the concept of “reputational risk” from federal banking guidance. For years, this vague standard allowed regulators to cite “negative public opinion” as a pretext for closing accounts. The president’s executive order puts an end to this practice.

This move is both lawful and necessary. A free society cannot function if citizens fear losing access to financial services because of their beliefs. Banks hold a privileged legal status. They enjoy federal protections, taxpayer backing, and in many cases, monopolistic size. If they are “too big to fail,” then they are certainly too big for bias.

Americans should never have to wonder if their religious or political beliefs might cost them a checking account. Allowing this gives powerful institutions the ability to decide who can and can’t participate in the economy. That isn’t freedom; it’s economic coercion.

Consider what happened to Indigenous Advance Ministries, a Christian ministry based in Tennessee. Founded in 2015, Indigenous Advance Ministries serves impoverished people in Uganda, including widows, orphans, prisoners, and single mothers. Its mission is to lift people out of poverty, share the hope of the gospel, and provide vocational training and mentorship to college students and young adults.

For years, Indigenous Advance relied on Bank of America for basic financial services. Its deposit accounts and credit cards made it possible to move funds quickly from the United States to its Ugandan staff and projects. But in April 2023, without warning, the ministry received letters notifying it that all accounts—including one belonging to a Memphis church that supported their work—would be closed within 30 days.

Why? Bank of America claimed they no longer wanted to serve the ministry’s “business type,” and that Indigenous Advance exceeded their “risk tolerance.” The abrupt cancellation caused chaos. With accounts suddenly closed, the ministry was forced to divert precious resources away from meeting tangible needs—including paying its hardworking Ugandan staff who often live meal-to-meal—while its leader scrambled to find a new bank.

Bank of America refused to answer any questions. Only four months later, when the story gained media attention, did the bank attempt to justify its actions by labeling Indigenous Advance a “debt collector.” That flimsy excuse—which makes even less sense when applied to its supporting church—is the only explanation Bank of America has ever offered.

This is profoundly un-American. No nation can be free if access to basic financial services depends on one’s political or religious beliefs. That is why Alliance Defending Freedom and others have been working to close this chapter of politicized debanking and get banks back to the business of serving everyone.

Thankfully, progress is being made. States like Tennessee and Idaho have enacted protections against discriminatory debanking. Major banks such as JP Morgan Chase, Citibank, Charles Schwab, and PNC Bank have taken steps to safeguard against the practice. And at the federal level, the White House’s groundbreaking executive order marks a major step toward rolling it back nationwide.

Even Bank of America has started to move, albeit slowly. Two years after canceling Indigenous Advance’s account, the bank updated its Code of Conduct to provide new protections against discriminatory debanking based on religion and political beliefs. Still, it has a long way to go before it can rebuild trust in the marketplace.

Americans should never fear that their bank might punish them for their faith or political convictions. That’s why these first public defeats for debanking should be seen as cause for hope.

But the fight is far from over. Just as with battles over gender ideology and abortion, the effort to end politicized debanking will not subside until it lies on the ash heap of history where it belongs.