Attorney General Ken Paxton has issued a stern warning to the City of Austin, demanding that it immediately cease contracting with companies that discriminate against the firearms industry.
Paxton’s letter, sent directly to city officials, threatens legal action if Austin does not comply with state law prohibiting such business relationships.
In 2021, Texas enacted Senate Bill 19, which forbids governmental entities from entering into contracts with companies that discriminate against the firearm or ammunition industries.
The law applies to contracts valued at $100,000 or more with companies employing at least ten full-time workers. Companies must certify in writing that they do not engage in such discrimination as a condition of doing business with Texas governmental bodies.
Despite this law, the City of Austin has continued to use WEX Bank for its fleet card management services.
According to Paxton, WEX Bank has a documented history of “debanking” or refusing services to firearms-related businesses, including the 2021 termination of accounts for Defense Solutions Group, a supplier to military and law enforcement agencies.
Paxton argues that Austin’s ongoing multi-million dollar contracts with WEX Bank are in direct violation of SB 19 and must be terminated or brought into compliance immediately.
In his letter, Paxton accuses the City of Austin of “flagrant violation” of its legal obligations, stating:
The City of Austin is sending millions of taxpayer dollars to companies that openly discriminate against the constitutionally protected firearms industry. The City of Austin does not get to pick and choose which laws it will follow, and I will take every measure to enforce Texas law.
Paxton further criticized the broader trend of “debanking,” in which financial institutions cut off services to individuals or businesses based on their political views or industry affiliations.
He said this was an attack on freedom of speech and constitutional rights and vowed to stand with businesses affected by such practices.
The issue of financial discrimination against the firearms industry has become a flashpoint in recent years.
Several major banks have faced scrutiny and legal challenges for allegedly refusing to do business with gun manufacturers and dealers. Texas responded by enacting laws like SB 19, aiming to protect the firearms industry from politically motivated exclusion from essential financial services.
Paxton gave Austin until July 16, 2025, to amend or be in the process of amending its contract with WEX Bank, otherwise he will take further action.
The City of Austin did not respond to a request for comment before publication.
No ads. No paywalls. No government grants. No corporate masters.
Just real news for real Texans.
Support Texas Scorecard to keep it that way!
