MONTGOMERY, Ala. — Alabama Gov. Kay Ivey signed Executive Order No. 743 on Thursday, directing state-chartered banks to avoid denying services based on customers’ political views or beliefs, aligning the state with a similar federal directive from President Donald Trump.
The order responds to claims of “debanking,” where individuals or businesses allege banks cut ties due to political differences. Documented cases explicitly tied to political bias remain rare. A federal review following Trump’s 2025 executive order found just 35 complaints citing political reasons for account closures, despite the vast scale of the U.S. banking system.
Ivey’s order instructs the Alabama State Banking Department to issue guidance ensuring state-chartered institutions provide “fair and lawful access” to services. It echoes Trump’s Executive Order No. 14331 from August 2025, which aimed to prevent denials over “protected beliefs or political views.”
Critics of debanking claims point to other common reasons for account closures, such as fraud risks, anti-money laundering compliance or ties to high-risk industries like gambling operations and marijuana businesses — activities legal in some states but still scrutinized under federal law.
High-profile examples often cited by proponents involve figures linked to the Jan. 6, 2021, Capitol riot or the firearms industry. Banks have countered that closures stemmed from legal risks and regulatory pressures, not ideology. Past federal efforts like the Obama-era Operation Choke Point targeted certain lawful sectors, fueling ongoing debates.
The Alabama order formalizes the banking department’s existing stance against denying access based solely on beliefs or lawful activity. It applies only to state-chartered banks, leaving federally chartered institutions under separate oversight.