In June of 2021 Governor Greg Abbott singed a bill in Texas giving those in the firearms industry the same protections as those the government shields from racism, sexism, ageism, or other forms of prejudice. That meant companies which wanted to do business with government agencies in Texas had to show they did not engage in any discriminatory practices which were designed to target those involved in the firearms industry. The law became the model for other similar bills in other republican states.

As a result, as activists attempt to reignite a debate over gun control following various shootings, businesses have been hesitant to make any statements regarding the issue for fear of alienating activists on one side, or closing off business opportunities on the other. In addition as anti-gun activists attempt to bring pressure on businesses which offer services to the gun industry, those businesses will tend to resist such pressures in order to maintain the ability to work with Texas governments.

“Texas has pro-gun legislation which clearly makes a statement at ensuring that the firearms industry is well protected,” said Janice Iwama, a professor at American University.

The National Shooting Sports Foundation has been attempting to encourage other states to enact legislation like Texas’, contending that gun companies must have access to services such as banking, and this is the only way to assure those services remain available. Lawmakers in Oklahoma and Louisiana have similar bills advancing, and additional measures are being introduced elsewhere.

The Texas law has hit Wall Street hard, where Bank of America Corp., JPMorgan Chase & Co., and Goldman Sachs Group Inc. had been curtailing services to gun companies. Citigroup Inc. had also restricted retailers from dealings with firearms.

The Texas bill mandates that any public contract valued at $100,000 or more must include a provision that states “the company does not and will not discriminate against a firearm entity or trade association.”

As a result, Bank of America, JPMorgan, and Goldman stopped underwriting most municipal-bond deals in Texas. Citigroup stopped, but resumed such deals last year. As a result, major banks lost business to regional firms who abided by the rules.