President Donald Trump has issued an Executive Order titled “Guaranteeing Fair Banking for All Americans.” The order instructs federal regulators to address what it describes as “politicized or unlawful debanking,” which refers to restricting access to financial services based on political or religious beliefs. According to the administration, individuals and businesses with conservative views have been disproportionately affected by such practices.
Under the new order, banking regulators are required to identify institutions that have engaged in debanking and take corrective measures against them. The order also mandates that federal banking agencies remove reputational risk considerations from their guidance materials, focusing instead on risks that are material, measurable, and justifiable.
Congressional support has emerged following the announcement. French Hill (R-AR), Chairman of the House Financial Services Committee, stated: “I commend President Trump for taking decisive action to protect all Americans from politically motivated financial discrimination.” Representative Andy Barr (R-KY) indicated his intention to introduce legislation making the executive order permanent.
The order references “Operation Chokepoint,” a past initiative under the Obama administration aimed at scrutinizing bank dealings with certain industries like firearms dealers and payday lenders. However, critics say this program led some banks to end relationships with legal businesses—including installment lenders—based solely on reputational concerns rather than objective standards.
Though Operation Chokepoint officially ended in 2017, organizations such as the American Financial Services Association (AFSA) have continued advocating for fair banking practices. AFSA recently supported proposed legislation that would prevent federal regulators from directing banks to terminate relationships with lawful businesses unless there is a valid reason beyond reputational risk. The association states it will continue monitoring developments related to debanking policies and administrative actions.