Attorney General Ken Paxton has issued a stern warning to the City of Austin, demanding it immediately cut all contracts with a bank known for its hostility toward the gun industry.
Paxton warns that if Austin doesn’t terminate any contracts in question, the city will face legal consequences from the Attorney General’s office.
In a letter sent to city officials dated June 16, Paxton claims Austin is in clear violation of state law by continuing to do business with WEX Bank, a company that has previously blacklisted gun-related businesses.
The city reportedly maintains multimillion-dollar contracts with the bank to manage its “fleet card” services, despite WEX’s track record of discriminating against firearm suppliers across America.
“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,” Paxton said in a press release. “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.”
At the heart of the dispute is a state law designed to shield the firearm and ammunition industry from any targeted financial discrimination. Passed after growing concerns that major banks and payment processors were quietly “debanking” legal gun manufacturers and dealers, the statute blocks government entities from entering into contracts with companies that boycott the gun industry.
WEX Bank’s 2021 cancellation of its relationship with Defense Solutions Group, a supplier of tactical equipment to police and military clients, is cited in Paxton’s letter as a key example of their bias against the gun industry. Therefore, violating the state’s discrimination law.
Paxton’s move may now be seen as a line in the sand: claiming that Texas law, not activism at the corporate level, dictates the rules.
If Austin fails to comply, Paxton’s letters to the city hint that he will soon pursue litigation to enforce the statute and protect the gun industry from further financial conflicts of interest.
The City of Austin has yet to publicly respond as of publication.