The welding, automotive, aviation maintenance, submarine, shipbuilding, and other defense-related trade industries are facing a workforce shortage. Many service members and veterans possess the skills to excel in trade jobs benefiting the defense industrial base...
The United States will host the 2026 FIFA World Cup, along with Canada and Mexico. Miami was chosen as one of the host cities to hold matches, with additional Florida cities serving as base camps for the competing national teams. The increased tourism activity across...
Oropouche virus is a disease spread to humans by mosquitoes and biting midges that can cause neurological effects and devastating effects on unborn babies. Recent surveillance data reports approximately 40 travel-associated cases of oropouche, in Florida, from...
The United States Commission on International Religious Freedom (USCIRF), created by the International Religious Freedom Act of 1998, is a bipartisan commission that monitors and reports on international religious freedom. The commission’s authorization is currently...
U.S. Senator Marco Rubio’s (R-FL) office will host in-person Mobile Office Hours next week to assist constituents with federal casework issues in their respective local communities. These office hours offer constituents who do not live close to one of Senator Rubio’s...
U.S. government agencies have different criteria for sanctioning adversaries and preventing them from engaging in the U.S. economy. Our biggest foreign adversaries, like China, benefit from this lack of interagency coordination, which must come to an immediate...
Washington, D.C. — U.S. Senators Marco Rubio (R-FL), Kevin Cramer (R-ND), Tom Cotton (R-AR), Marsha Blackburn (R-TN), and Ted Cruz (R-TX) reintroduced the Financial Defense of Industrial Contractors (FDIC) Act, which would combat today’s political discrimination by some of the largest banks operating in the United States against federal contractors, including those which operate facilities on behalf of the Immigration Customs and Enforcement Agency (ICE). Rubio first introduced the bill in February 2020. A one pager of the bill is available here.
“Some of our nation’s largest banks have decided to cater to the radical left’s ‘woke’ agenda by abusing their systemic influence in our economy to deprive law-abiding federal contractors of banking services critical to their business,” Rubio said. “Banks have a right to deny funds to certain businesses, but they shouldn’t enjoy taxpayer-provided guarantees if they are undermining the public policy of the United States.”
“Some large banks are weaponizing their essential position in the economy to discriminate against companies who assist our immigration law enforcement operations,” Cramer said. “If they would like the right to deny service to certain companies, the federal government should have the right to withdraw its taxpayer-funded guarantees.”
“The Immigration and Customs Enforcement Agency employs contractors to help enforce the immigration laws that keep Americans safe,” Cotton said. “By denying critical financial services to ICE contractors, big banks have hobbled ICE’s efforts to protect Americans. These banks shouldn’t receive public funding if they’re putting the public at risk.”
“It is unacceptable that some of our nation’s biggest banks have decided to deny our immigration enforcement agencies access to their services,” Blackburn said. “ICE carries out its work at the direction of the United States Congress. For these big banks executives to think their political interests are worth sacrificing the nation’s safety is disgraceful.”
“It’s deeply concerning to see our country’s largest banks caving to the radical Left’s social agenda,” Cruz said. “Banks should be making decisions that are based on research and facts, not political pressure. I support our ICE agents and the contractors who work for them. They are risking their lives every day to keep this country safe. They deserve better.”
Specifically, the FDIC Act would amend the Federal Deposit Insurance Act to remove Federal Deposit Insurance Corporation (FDIC) insurance from banks with assets over $50 billion and which refuse to provide banking services to firms with an active federal contract which are otherwise creditworthy and law-abiding. If a bank violates this standard, the FDIC Board of Directors would begin the FDIC insurance termination process pursuant to the Federal Deposit Insurance Act, including a notice of intent, FDIC board hearing, and a transition phase of up to two years.
Background:
Six major banks operating in the United States — Wells Fargo, JP Morgan, Bank of America, BNP Paribas, Barclays, and SunTrust — have announced they will no longer provide depository services to contractors which operate facilities on behalf of ICE. These businesses are being denied banking services despite being law-abiding, creditworthy entities which are fulfilling services contracted by the federal government under statutory authority enacted by Congress.
These banks receive significant public support from American taxpayers. They receive explicit guarantees for their depositors’ savings, and implicit guarantees from the Federal Reserve. Due to their size, they also control significant portions of the credit market directly through their lending and indirectly by setting trends and norms for other banks to follow. They control over $7 trillion in assets combined.
By denying funds to legitimate federal contractors, these banks are using their systemic importance and taxpayer-provided guarantees to counteract the public policy of the United States. Banks have a right to deny funds to whichever businesses they choose, but they should not be able to deny funds to creditworthy, law-abiding businesses because they are carrying out federal policy and continue to receive taxpayer money.