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Senate passes bill banning 'de‑banking' by large institutions
Summary
The Idaho Senate passed Senate Bill 10‑27, the Idaho Transparency in Financial Services Act, prohibiting certain large financial institutions and payment processors from closing accounts for reasons tied to political, religious or other protected beliefs and requiring notice and explanations.
Boise — The Idaho Senate on March 3 passed Senate Bill 10‑27, the Idaho Transparency in Financial Services Act, which sponsors said will prohibit large financial institutions and payment processors from closing or refusing accounts for reasons tied to customers’ political or religious beliefs and will require affected customers to receive an explanation.
Senator Grant Grantham, the bill sponsor, told colleagues the measure protects Idahoans from losing access to “basic financial services” and described instances of what he called “debanking,” where large banks have closed accounts of individuals or organizations for reasons tied to beliefs or business activity. “How would you navigate your everyday life … if you could have no access to basic financial services?” Grantham asked on the floor.
Supporters described the bill as narrowly targeted at the nation’s largest institutions and payment processors — those the sponsor characterized as “too large to fail” — and said it is intended to ensure transparency and protect constitutionally protected activity, including free speech and freedom of religion. Grantham said the measure “only applies to the largest financial institutions and payment processors” and not to Idaho’s smaller, local banks.
Senator Sarah Anthony, who closed debate, read remarks from U.S. Senator Elizabeth Warren’s 2005 Senate banking hearing record to underscore that concerns about account closures have been raised across the political spectrum. Anthony said complaints to federal agencies show people reported “no warning, no explanation, no chance to dispute or appeal.”
The Senate performed a roll call and the secretary announced the result: 32 in favor, 2 opposed and 1 absent. With the majority voting in the affirmative, the bill passed and will be transmitted to the House for further consideration.
The bill’s floor debate included citations to national incidents and federal complaint data; supporters said the measure builds on Idaho consumer protections and applies only to institutions that receive certain government privileges. Opponents did not register extended floor debate during the Senate consideration recorded in the transcript.
Senate action: The Senate read the bill, dispensed with further reading, opened debate, then passed SB 10‑27 with the roll call recorded.
