BOISE, Idaho – Idaho Gov. Brad Little signed into law the Transparency in Financial Services Act Tuesday, becoming the most recent state to adopt legislation protecting against viewpoint discrimination in financial services. Taking effect July 1, the law prohibits financial institutions with over $100 billion in assets from canceling accounts for constitutionally protected political or religious views, speech, or affiliations.
By implementing the new protections based on Alliance Defending Freedom’s model legislation, Idaho joins Tennessee (which adopted ADF’s model bill last April) and Florida as the third state in the nation to proactively protect citizens from viewpoint discrimination in banking and payment processing. Last March, U.S. Bank abruptly canceled the long-held account of the Constitution Party of Idaho with no explanation, an instance that follows the well-worn pattern of apparent viewpoint-based cancelations by large, nationally chartered banks such as JPMorgan Chase and Bank of America.
“This bill is a massive step to ensure the freedom of every Idahoan,” said ADF Senior Counsel and Senior Vice President of Corporate Engagement Jeremy Tedesco. “Big Banks, which control services vital to our economy, are just as threatening to freedom as Big Brother. Everyone needs access to basic financial services no matter their political or religious beliefs. States like Idaho are charged with the duty to protect their citizens from financial discrimination, especially from nationally chartered banks that function as quasi-government entities.”
ADF’s efforts to combat debanking have gained significant traction, from exposing discriminatory practices through its Viewpoint Diversity Score Business Index to driving policy changes at major financial institutions. Earlier this month, Chase agreed to adopt language that will protect against future instances of political and religious debanking in its Code of Conduct. The changes mark a crucial step forward at the nation’s largest bank, which has come under heightened scrutiny for several instances of apparent viewpoint-based cancelations in recent years.
The policy changes, which Chase has agreed to adopt and post publicly by late July, protect against religious and political discrimination for customers, suppliers, contractors, and employees. In particular, the changes specify that the company will “not tolerate discrimination” “based on … religion, religious affiliation, or religious views” or “political opinions, speech or affiliations.”
While providing testimony and assisting Idaho state lawmakers, ADF has also collaborated with Inspire Investing and the American Conservative Values ETF to file a shareholder proposal at U.S. Bank calling for transparency in light of the bank’s sudden cancelation of the Constitution Party of Idaho. U.S. Bank shareholders will have a chance to vote on the proposal at the company’s annual meeting later this spring.
“No one should be denied access to basic financial services because of their political or religious beliefs,” said ADF Senior Counsel and Director of the ADF Center for Public Policy Matt Sharp. “Thankfully, Senate President Pro Tempore Kelly Anthon, House Assistant Majority Leader Josh Tanner, and Gov. Little have taken an important step forward to protect the fundamental freedoms of Idahoans of every political and religious stripe by enacting this law. ADF commends their leadership and the invaluable support of the Foundation for Government Accountability which made getting this legislation across the finish line possible. Banks that are too big to fail are too big for bias. This bill is a win for consumer protections.”
Alliance Defending Freedom is an alliance-building, non-profit legal organization committed to protecting religious freedom, free speech, parental rights, and the sanctity of life.
# # #