Trump Ends Banking War on Gun Industry with New Executive Order

President Trump just delivered a knockout punch to banks that have been discriminating against gun companies for years. His August 7th executive order, “Guaranteeing Fair Banking For All Americans,” puts an end to what those of us in the firearms industry know all too well – systematic financial persecution that's been going on for over a decade.

As someone who's watched friends and colleagues in this industry struggle to get basic banking services, this executive order feels like a long-overdue victory. We've seen too many legitimate businesses struggle to secure funding and basic financial services not because they weren't profitable, but because banks decided our constitutional rights were bad for their image.

What the Order Does

Trump's order bans “politicized or unlawful debanking” – basically when banks cut off services to customers because of their political beliefs or legal business activities. The order gives federal banking regulators 180 days to strip out “reputation risk” standards from their examination manuals, the very tools banks used to justify discriminating against gun companies.

Here's the kicker: banks that participate in Small Business Administration programs now have to identify customers they previously kicked out for political reasons and offer to bring them back. They have 120 days to do it. For those who've been blacklisted, this could mean real relief.

How We Got Here: Operation Chokepoint

This whole mess started with Obama's “Operation Chokepoint” back in 2013. What began as an anti-fraud program quickly turned into a hit list targeting gun dealers, ammunition retailers, and other businesses the administration didn't like.

I remember when this first started hitting the industry. Suddenly, businesses that had banking relationships for decades were getting calls that their accounts were being closed “due to risk management concerns.” No explanation, no appeal process – just financial excommunication.

Federal regulators literally created lists of “high-risk merchants” that included firearms and ammo sales. Banks used these government lists to justify cutting ties with perfectly legal businesses. A 2014 House investigation slammed the program, saying it forced “bankers to act as the moral arbiters and policemen of the commercial world.”

The program officially ended in 2017, but banks kept using “reputational risk” as an excuse to discriminate. Those of us in the industry kept getting rejected for loans, payment processing, and even basic checking accounts.

The Banking Industry's Anti-Gun Crusade

Citibank Leads the Attack

After the 2018 Parkland shooting, Citibank became the first major bank to openly discriminate against gun businesses. Their new policy required retail clients to:

• Stop selling guns to anyone under 21 (even though federal law allows 18-year-olds to buy rifles)
• Refuse to sell standard-capacity magazines
• Add extra background checks beyond what federal law requires

The backlash was swift. Louisiana kicked Citibank out of a $600 million bond deal. Texas booted them from a $3.4 billion municipal bond opportunity. State Treasurer John Schroder put it bluntly: “No one can convince me that keeping these two banks in this competitive process is worth giving up our rights.”

Bank of America Joins In

Bank of America wasn't far behind, implementing a blanket ban on lending to companies that make popular rifles like AR-15s. They called it “Environmental, Social, and Governance” policy, but those of us dealing with it knew what it really was: political discrimination dressed up as risk management.

We watched as manufacturers struggled to get equipment loans and retailers couldn't secure inventory financing. These weren't fly-by-night operations – these were established businesses with solid credit histories being turned away solely because of what they sold.

Other Banks Follow Suit

Wells Fargo initially held out. Former CEO Timothy Sloan said banks shouldn't be “the arbiter of what an American can buy.” But after gun control groups gave major banks “failing grades” in 2019, Wells Fargo caved too.

JPMorgan Chase and others followed with their own restrictions, creating a coordinated financial blockade against an entire constitutional industry.

States Fight Back – And We Owe Them Big Time

When the federal government wouldn't act, Republican states stepped up to the plate. We owe a huge debt of gratitude to Texas, which led the charge with Senate Bill 19 in 2021 – the first law blocking government contracts with banks that discriminate against gun businesses.

Thank you, Texas. Your leadership showed other states the way forward and proved that there are real consequences for financial discrimination.

The law worked. When Texas Attorney General Ken Paxton found Citibank's policies violated the law, the bank lost millions in potential municipal bond revenue. Money talks, and suddenly these banks started listening.

Florida deserves massive credit too, along with many states including Alabama, Georgia, Idaho, Louisiana, Montana, Oklahoma, Utah, and Wyoming – all states that followed with similar laws. Without your efforts, we'd still be fighting this battle alone.

These state victories were crucial. They showed banks that discriminating against our industry had real financial consequences, not just angry letters from trade associations.

Banks Start Backing Down

Citibank Caves

In June 2025, after seven years of discrimination, Citibank finally reversed course. The bank announced it would “no longer have a specific policy as it relates to firearms” and promised to stop discriminating based on political beliefs.

The National Shooting Sports Foundation welcomed the news but remained cautious. “We are guardedly optimistic, yet adhere to the proverb of ‘trust, but verify,'” said Senior VP Larry Keane. “We will see if this is a substantive change in policy or just a superficial change.”

That caution is well-founded. Those of us in the industry have heard promises before, only to find the discrimination continued behind closed doors.

Bank of America Follows

Bank of America also walked back its gun lending ban in 2024, switching to “case-by-case” reviews instead of blanket prohibitions. Bloomberg reported that state anti-discrimination laws played a major role in forcing these reversals.

Congressional Backup: Fair Access to Banking Act

Senator Kevin Cramer and Rep. Andy Barr have been pushing the Fair Access to Banking Act for years. The 2025 version (S. 401 and H.R. 987) would:

• Ban banks from denying services except for documented, quantitative reasons
• Eliminate “reputational risk” as grounds for discrimination
• Hit violators with real penalties, including loss of federal deposit insurance
• Let victims sue discriminatory banks

With 44 Senate co-sponsors and growing House support, the bill has serious momentum under Trump. This legislation needs to pass – executive orders can be reversed by future administrations, but laws are much harder to undo.

What's Next

Trump's executive order sets tight deadlines:

• 60 days: SBA notifies banks about reinstatement requirements
• 120 days: Banks must offer to restore previously denied clients
• 180 days: Banking regulators must purge discriminatory standards

The Treasury Secretary has to develop a comprehensive strategy for stopping financial discrimination, including new laws and regulations if needed.

A Warning and a Call to Action

Here's the reality we need to face: executive orders can be undone by future administrations. While Trump's order is a massive victory, we can't rely on it alone. We need the Fair Access to Banking Act to become law, and we need to stay vigilant.

More importantly, we need to vote with our wallets. Every gun owner, every Second Amendment supporter needs to ask their bank one simple question: “Do you discriminate against firearms businesses?” If the answer is anything other than an absolute “no,” find a new bank.

Support institutions that support us. Credit unions, community banks, and regional institutions have often been more friendly to our industry than the mega-banks. When these smaller institutions see gun owners choosing them over discriminatory giants, it sends a powerful message.

Research where you're putting your money. That credit card you're using, that mortgage company, that investment firm – do they support our constitutional rights, or are they working against us? There are directories and resources available to help you find gun-friendly financial institutions.

Our Second Amendment rights are too important to be held hostage by woke bank executives. This executive order is a great start, but the real power lies with us – the American gun owners who refuse to do business with anyone who doesn't respect our constitutional rights.