By Jason Stverak
Imagine waking up to find your bank account suddenly frozen or closed with no clear explanation. For a growing number of Americans, this nightmare has become reality. “Debanking” – the practice of financial institutions arbitrarily denying or restricting services – has hit ordinary people and lawful businesses across the country. The victims span from nonprofit charities to small entrepreneurs. One of the nation’s largest banks even shut down the account of a Christian charity caring for orphans – and the account of a church that dared to donate to that charity – simply because someone in a corporate office deemed them an “intolerable” risk. No allegations of illegality, just a values-based judgment.
Such politicized banking decisions have left people unable to make payroll, saddled with unexpected debt, and cut off from their own money. In a free country, this is unacceptable. Every American, regardless of their beliefs or the lawful causes they support, deserves fair access to financial services.
A Needed Stand: Guaranteeing Free and Fair Banking
President Donald J. Trump took a decisive step by issuing an executive order titled “Guaranteeing Free and Fair Banking for All Americans.” This landmark order sends a clear message: banks and credit providers must never deny someone services because of that person’s protected political or religious beliefs. Under this policy, no American should be “debanked” for their affiliations or viewpoints – banking decisions should be based on individual risk and creditworthiness, not politics.
The order rightly calls out practices that have crept into our financial system in recent years. It also rebukes regulators’ past efforts, like the infamous “Operation Choke Point,” where authorities quietly pushed banks to drop clients in certain disfavored but lawful industries. The president’s order recognizes that these practices “undermine public trust” and even violate laws like the Equal Credit Opportunity Act. In short, it affirms a basic American principle: your access to the banking system should never hinge on your politics, faith, or the legal business you’re in.
Applause for Taking Stand
As the chief advocacy officer of the Defense Credit Union Council (DCUC), I applaud President Trump for taking this stand. But more importantly, I support the values behind this policy – values of fairness, inclusion, and apolitical service that credit unions have long upheld. This isn’t about left or right; it’s about right and wrong. No family should worry that their bank will drop them because of who they voted for. No small business should be one controversy away from losing the account it needs to pay employees. The executive order’s goals are about protecting freedom and fairness in an area that touches every American’s daily life: their finances.
When Big Banks Turn Their Backs
To appreciate why this action is so vital, consider how we got here. Over the past decade, many large banks and payment companies – often spurred by quiet regulatory pressure or fear of bad headlines – engaged in risk-averse debanking.
Under Operation Choke Point in the 2010s, for instance, federal regulators targeted banks serving certain legal industries (like payday lenders or firearms dealers) under the guise of fighting fraud. Even after that program was ended in 2017, the mindset lingered.
- Law-abiding gun shops saw their accounts terminated due to so-called “reputation risk” concerns.
- Cryptocurrency businesses faced sudden account closures as some institutions decided anything “crypto” was too much hassle.
- Advocacy nonprofits and social organizations have been dropped by banks merely because their causes were deemed controversial.
The Pattern is Clear
Each case may have its nuances, but the pattern is clear: ordinary people and lawful enterprises have been punished not for crimes, but for perceptions and politics.
The harm from this trend is very real. Small businesses suddenly left unbanked can’t process payments or secure loans, putting jobs at risk. Individuals cut off from basic accounts might struggle to pay bills or are forced into less safe financial alternatives. Even veterans and military families – whom we in the defense credit union community especially care for – have not been immune. Some have been disproportionately harmed when big banks decide certain transactions or affiliations are outside the norm.
It is painfully ironic: the very Americans who volunteered to defend our freedoms can find themselves denied a checking account because a financial executive fears a political shadow. This cannot continue.
Credit Unions: Built to Serve, Not Exclude
Fortunately, there has always been an antidote to this kind of profit-driven discrimination: credit unions. Unlike large for-profit banks, credit unions are member-owned, not-for-profit cooperatives with a core mission to serve their member communities. We don’t answer to Wall Street investors or chase quarterly profits at the expense of our customers – our customers are our owners. This structure makes a world of difference. It means credit unions measure success in people helped, not just dollars earned. We prioritize relationships over risk models. We see members as neighbors and heroes – not potential reputational liabilities.
Defense credit unions in particular have always taken pride in apolitical, fair service. Our members include active-duty servicemembers, veterans, and their families from all walks of life. We have one unifying mission: “Serve Those Who Serve.” Whether a young enlistee just starting out, or a retired veteran entrepreneur, each member knows their credit union will stand by them. We don’t ask about your political party when you apply for a car loan. We don’t judge your beliefs when you need a credit card or small business loan. We focus on your character and needs – the things that actually matter in banking.
This inclusive ethos isn’t new; it dates back to the 1930s when credit unions were founded to extend financial access to everyday Americans. We exist precisely to ensure no one is left behind by the financial system.
Standing By Americans When Others Won’t
Throughout recent banking controversies, credit unions have proven to be part of the solution. When profit-driven banks retreat, credit unions step up. DCUC recently reminded Congress that credit unions protect members against debanking through their community-focused model. Consider a few ways credit unions lead by example in guaranteeing free and fair banking:
Promoting Inclusion: Credit unions actively serve underserved communities, including veterans, military families, and small businesses, who too often are overlooked by big banks. We open doors for those who might otherwise be deemed “too small” or “too risky” by profit-first institutions.
Fair Service – No Politics: We provide fair, transparent banking without arbitrary account closures. Our members don’t live in fear that tomorrow their credit union will drop them over a difference in values. That trust is sacrosanct.
Serving Where Others Withdraw: When big banks pull out of military bases or rural towns because the profit margins aren’t big enough, credit unions remain to serve military families and local communities. On many installations, defense credit unions are the last reliable financial partner on-site – ensuring troops and their families have access to safe, affordable services.
Lending a Hand to Small Businesses: Credit unions frequently provide loans and capital to small businesses that larger banks snub. For example, if a veteran entrepreneur’s loan application is declined by a national bank’s algorithm, a credit union will take the time to understand their business plan and character. We’ve helped launch countless veteran-owned businesses by looking at people, not just credit scores.
More Than Talking Points
These are not just talking points – they are everyday reality in the credit union movement. Every month, I hear new stories of a credit union going the extra mile: waiving fees for a military spouse in need, or tailoring a financial education program for young servicemembers.
This community-first approach has made credit unions a “financial safety net” for millions. It’s proof that you can succeed as a financial institution without cutting off people who don’t fit a corporate mold. In fact, by sticking with members through thick and thin, credit unions build lifelong relationships and stronger communities.
Protecting Financial Freedom for All
The executive order on free and fair banking is a welcome affirmation of principles that credit unions have long held dear. It says no American should be denied banking for their lawful beliefs – a principle we’ve lived by for decades. By directing regulators to curb “reputation risk” excuses for debanking and to punish unlawful discrimination, the order will help ensure what happened to that orphanage charity – and so many others – never happens again. It will reassure people that their bank account is not a political weapon to be used against them.
On behalf of the Defense Credit Union Council and our 200 member credit unions serving over 40 million Americans, I want to thank President Trump for shining a light on this issue. But this moment is bigger than any one leader. It’s about reaffirming the idea that fairness is a nonpartisan value. In the spirit of our inclusive mission, credit unions stand ready to work with policymakers of all stripes to implement these protections. We will continue to be an example of banking done right – where the only criteria is a person’s character and needs, not their politics.
Should Never Have to Wonder
Americans should never have to wonder if their bank will judge or jilt them for their beliefs. Thanks to this executive order’s vision, and with credit unions leading the way, we can restore trust that banking will be free and fair for all. Whether you’re a young soldier saving your first paycheck or a grandparent running a small charity, you deserve a financial partner that stands by you.
Together, let’s ensure “free and fair banking for all Americans” is not just an executive order title, but a lived reality in every community across our nation.
Jason Stverak is chief advocacy officer with the Defense Credit Union Council.