A law that is stopping banks across the country from "discrimination" against gun companies could potentially cost the state of Texas over $300 million per year in borrowing costs.
A law from 2021 prohibiting municipalities from working with banks that "discriminate" against the gun industry in Texas has cost the state more than $300 million, according to research from a University of Pennsylvania professor and a Washington, DC-based Federal Reserve economist.
This law came to be when Texas lawmakers passed SB 19 last year in response to some major financial institutions withdrawing from their relationships with the firearms industry.
- Senate Bill 19 basically requires banks to prove to the state attorney general they don’t “discriminate” against gunmakers and retailers. Republicans believe that large banks have quietly enacted policies to restrict gun sales and exert pressure on the firearm industry.
In other words, GOPs believe that these major financial institutions hold their money and attempt to use financial pressure to infringe upon their Second Amendment rights.
JPMorgan Chase joined some of the nation's largest banks in publicly distancing itself from the firearm industry four years ago, following a mass shooting in Parkland, Florida, that left 17people dead.
This is one of the reasons why Texas enacted a law that forces banks to say they do not discriminate against guns and have to submit in writing that they indeed do not.
Legislative researchers initially estimated that the bill would not increase the cost of doing business in the state, but Daniel Garrett of UPenn told The Houston Chronicle there is a cost to making such a political statement.
He added that the cost for Texas to continue defending this SB 19 law is between $300 million and $500 million, and more money is potentially going to be paid.