The city of Austin amended its contract with WEX Bank after Texas Attorney General Ken Paxton demanded that it stop contracting with companies that “discriminate” against firearm or ammunition companies in a June 16 letter.
Texas Senate Bill 19, passed in 2021, requires that government contracts over $100,000 must have a provision that confirms the company “does not have a practice, policy, guidance or directive that discriminates against businesses associated with the firearms industry.” This provision was not present in the city’s contract with WEX Bank, which Paxton said has a history of openly targeting firearms companies.
In the letter, Paxton said WEX Bank discriminated against Defense Solutions Group (DSG), a military and law enforcement supplier. Paxton said DSG was cut off by WEX Bank from payment processing services because of its involvement with the firearm industry and felt the impact of “politically motivated debanking.”
Kelly Gibson, senior public relations manager for WEX Bank, said in an email that WEX Bank does not discriminate against any “lawful industry or business.”
“WEX Bank’s business practices are consistent across all industries we serve,” Gibson said.
Paxton said his office would take action if the city of Austin failed to amend the contract.
“Given the short time frame between the effective date of SB 19 of September 1, 2021, and the effective date of the contract with WEX Bank being September 11, 2021, the exclusion of this required provision could have been an oversight,” Paxton wrote in the letter. “Nevertheless, as members of the City Council, you must take steps to ensure that all contracts are legal under state law.”
The city of Austin received the letter from the attorney general and began taking steps to comply with the law, according to a statement from City Council member Ryan Alter.
“The city of Austin contacted WEX Bank on June 20 and requested that WEX Bank execute an amendment to its contract,” Gibson said. “WEX Bank submitted the signed amendment to the city of Austin on June 20, 2025. The amendment confirms compliance with applicable Texas law.”
UT law adjunct professor Randall Erben said this law is one of several passed by the Texas Legislature that regulate the companies with which governments can enter into contracts. Among these are laws that prohibit contracts with companies that boycott energy companies, provide travel abortion services or discriminate against firearm entities. While the inspiration behind these laws might have been political, government entities, including the city of Austin, are still required to follow them.
“Whether you’re a liberal Democrat or a conservative Republican, you’re bound to enforce (the law),” Erben said.
