AUSTIN, TX — Texas Attorney General Ken Paxton has issued a formal warning to the City of Austin, demanding that it cease doing business with companies that he says illegally discriminate against the firearms industry. Paxton alleges that the city’s ongoing relationship with WEX Bank, a financial services provider, violates state law and could trigger legal action.
In a letter sent this week, Paxton contends that Austin’s multimillion-dollar contract with WEX Bank—used to manage the city’s fleet card services—is in direct violation of Senate Bill 19, which prohibits government entities from contracting with firms that boycott the firearm or ammunition industries.
“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 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.”
Allegations of “Debanking”
The letter references a 2021 incident in which WEX Bank allegedly terminated business with Defense Solutions Group, a company that supplies tactical equipment to military and law enforcement agencies. Paxton cited this as evidence that the bank has “openly targeted firearms companies.”
“The concept of debanking is anti-American and stands in stark opposition to our rights to freedom of speech,” Paxton wrote, adding that he stands with businesses that have been marginalized because of their ties to the firearms industry.
Legal Context
Under Texas law—specifically Government Code Chapter 2274, enacted in 2021—state and local agencies are required to obtain written certification from companies with contracts over $100,000 affirming that they do not discriminate against firearm or ammunition businesses. The measure was part of a broader push by the Texas Legislature to counter what lawmakers described as politically motivated financial exclusion.
City of Austin Under Scrutiny
The Attorney General’s office says Austin has continued to use WEX Bank without obtaining this certification, despite the company’s past actions. The city’s failure to adhere to the statute, Paxton argues, not only undermines the state’s pro-Second Amendment policies but also subjects the city to potential lawsuits and enforcement actions.
Paxton’s letter serves as a final warning, urging city officials to “immediately terminate” the contract or “bring it into compliance” with state law. Failure to do so, he says, will result in the state pursuing “all appropriate legal remedies.”
As of press time, officials from the City of Austin had not responded publicly to the Attorney General’s demands.
To read Attorney General Paxton’s full letter, visit: texasattorneygeneral.gov (example link).
