Attorney General Ken Paxton sent a letter to the City of Austin warning that if the city fails to comply with Texas law forbidding governmental bodies from doing business with companies that discriminate against the firearms industry, he will pursue legal action to enforce the law.
“In flagrant violation of its legal obligations, the City of Austin is sending millions of taxpayer dollars to companies that openly discriminate against the constitutionally protected firearms industry,” said Attorney General Paxton. “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.”
Under Texas law, governmental entities are forbidden from contracting with companies that discriminate against the firearm and ammunition industries. However, the City of Austin has, in violation of this law, continued to use WEX Bank for its fleet card management. WEX Bank has a history of openly targeting firearms companies, debanking Defense Solutions Group, a supplier of high-end equipment to military and law enforcement entities, in 2021. Accordingly, the City of Austin’s multi-million dollar contracts with WEX Bank are unlawful and must be brought into compliance immediately or face legal action.
In the letter, Attorney General Paxton explains: “Banks and the regulatory regime took action during the Biden administration to cut off everyday Americans and their businesses from critical financial services because of their views. The concept of debanking is anti-American and stands in stark opposition to our rights to freedom of speech guaranteed by the Constitution. I stand with businesses that have been discriminated against because of their involvement in the firearms industry, just like Defense Solutions Group.”
To read the letter, click here.