Ensuring Equal Banking Opportunities for All U.S. Citizens
The 2025 Executive Order titled "Guaranteeing Fair Banking for All Americans", signed by President Donald J. Trump on August 7, 2025, aims to establish a federal policy that prohibits financial institutions and banking regulators from engaging in politicized or unlawful debanking—that is, denying or restricting financial services based on political beliefs, religious beliefs, or lawful business activities.
Key policies and remedies outlined in the Order include:
- Federal banking regulators are directed to conduct reviews by December 5, 2025, to identify any financial institutions with past or current policies/practices that encourage politicized or unlawful debanking. Appropriate remedial action, including levying fines, issuing consent decrees, or imposing other disciplinary measures, will be taken against offending banks.
- By February 3, 2026, these regulators will review supervisory and complaint data specifically for unlawful debanking based on religion (without lawful exemptions) and refer violators to the Attorney General for civil action. They will also remove "reputational risk" and related concepts from regulatory guidance and examination manuals that may enable politicized or unlawful debanking.
- The Small Business Administration is instructed to require financial institutions under its jurisdiction to make reasonable efforts to reinstate clients previously denied services due to unlawful debanking.
- The Secretary of the Treasury, in consultation with the Assistant to the President for Economic Policy, will develop a comprehensive strategy to combat politicized or unlawful debanking activities within 180 days of the order.
The Order is effective immediately, with implementation over 180 days, and federal regulators have already expressed intent to comply promptly. The Order aims to guarantee fair access to banking services for all Americans, eliminate discriminatory banking exclusions, and enforce compliance through regulatory review, enforcement actions, and referrals to the Department of Justice when warranted.
It is important to note that some financial institutions have been accused of participating in Government-directed surveillance programs targeting individuals and businesses associated with conservatism and the political right following the events at the United States Capitol on January 6, 2021. Each Federal banking regulator will conduct a review to identify financial institutions that have had past or current policies or practices encouraging politicized or unlawful debanking within 120 days of the order. If a financial institution is unable to obtain compliance with relevant laws, the matters will be referred to the Attorney General for an appropriate civil action.
The term "politicized or unlawful debanking" refers to an act by a bank, savings association, credit union, or other financial services provider to adversely restrict access to or modify the conditions of accounts, loans, or other banking products or financial services of any customer or potential customer on the basis of their political or religious beliefs, or on the basis of their lawful business activities that the financial service provider disagrees with for political reasons. The policy of the United States is that no American should be denied access to financial services because of their constitutionally or statutorily protected beliefs, affiliations, or political views, and banking decisions should be made on the basis of individualized, objective, and risk-based analyses.
- The Small Business Administration has been instructed to require financial institutions under its jurisdiction to address previous cases of unlawful debanking by making reasonable efforts to reinstate clients who were denied services due to such practices.
- The Secretary of the Treasury, in consultation with the Assistant to the President for Economic Policy, will develop a strategy to combat the practice of politicized or unlawful debanking within 180 days of the Executive Order, which includes referring violators to the Attorney General for civil action if necessary.
