Trump Signs Executive Order to Curb Bank Account Closures Over Political or Religious Beliefs

President Trump signed an executive order targeting “unlawful debanking,” directing regulators to investigate and penalize banks that deny services over political or religious beliefs. The move removes “reputational risk” from banking guidance and seeks to reinstate wrongfully cut-off clients, amid ongoing debates over banks’ treatment of firearms, energy, and other industries.

President Donald Trump has signed an executive order directing US banking regulators to crack down on “unlawful debanking” — the practice of denying financial services based on political or religious views. The order mandates investigations into past cases, penalties for violators, and reforms to account closure processes to prevent discrimination.

Under the order, regulators must remove “reputational risk” considerations from banking guidance and training, a factor critics say has been used to deny services to industries such as firearms manufacturing, fossil fuels, religious organizations, and cryptocurrency firms. Institutions under the Small Business Administration’s jurisdiction will be required to make reasonable efforts to reinstate clients denied services unlawfully.

Trump, who alleged banks have targeted him personally, said no American should lose access to banking over beliefs. He cited incidents involving JPMorgan Chase and Bank of America, both of which denied taking action for ideological reasons. The White House emphasized that financial decisions should be based solely on objective, risk-based assessments.

Some major banks have previously restricted services to certain industries — for example, Bank of America and Citigroup both implemented limits on gun-related business after the 2018 Florida school shooting, though those policies have since been relaxed.

The order also requires regulators to refer cases of religiously motivated debanking to the Justice Department. It comes alongside another Trump initiative to expand access to alternative assets like private equity, real estate, and cryptocurrency in retirement accounts.

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Supporters of the order, including firearms industry groups, point to proposed “Fair Access to Banking Act” legislation as complementary to the president’s move. Critics warn that removing reputational risk assessments could force banks to serve clients whose activities pose ethical or public safety concerns.