Bank regulators must curb politically motivated service denials

Federal banking regulators must remove those concepts from covered guidance and examination materials and explain the change to examiners. This covers regulators’ materials for banks, savings associations, and credit unions, but not existing regulations or materials that require formal public rulemaking. Regulators must act to the greatest extent allowed by law. Regulators must consider changing regulations that could support these service denials, consistent with applicable law. Reputation may be considered only as needed for a reasonable, politically neutral, risk-based assessment. Regulators must complete the guidance and examiner-instruction changes within 180 days after August 7, 2025.

The Small Business Administration must notify covered financial institutions, which must review certain past denials and notify affected people about reinstatement or renewed service options. This covers institutions under SBA supervision and customers or potential customers denied SBA-related lending or payment-processing services in violation of specified legal or SBA program requirements. Institutions must make reasonable efforts to reinstate previous clients when required violations are found. Institutions must identify potential clients who were denied covered services and send notices explaining the denial and renewed option to seek service. The order does not require reinstatement or renewed service for every denial; the duties apply to denials that violated the listed laws or SBA requirements. Implementation remains subject to applicable law and available funding. The SBA must send notices within 60 days after August 7, 2025; covered institutions must complete the required identification, notice, and reinstatement efforts within 120 days after that date.

Federal banking regulators must review covered institutions, take authorized corrective action when violations are found, and refer some unresolved religious-discrimination matters to the Justice Department. The reviews cover institutions under each regulator’s jurisdiction and their past or current formal or informal policies or practices; referrals concern unlawful religious discrimination in banking services. Possible corrective actions include fines, consent agreements, or other discipline, but only when authorized by law. The Treasury strategy may consider future legislative or regulatory options; it does not itself enact those options. A religious-discrimination matter may be referred when the institution cannot be brought into compliance under the cited law. Regulators must identify potentially influencing policies within 120 days, develop the broader strategy within 180 days, and review complaint and supervisory data for religious discrimination within 180 days after August 7, 2025.