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Texas Attorney General Ken Paxton Warns Austin Over Anti-Gun Industry Contracts, Cites State Law Violation

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Published on June 19, 2025
Texas Attorney General Ken Paxton Warns Austin Over Anti-Gun Industry Contracts, Cites State Law ViolationSource: Wikipedia/Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0, via Wikimedia Commons

Attorney General Ken Paxton, in a resolute move, has issued a stern warning to the City of Austin, signaling potential legal action over contracts with anti-firearm industry companies. This admonition comes as Paxton alleges the city is breaching Texas state law that prohibits governmental entities from engaging in commerce with organizations biased against the gun sector. According to the Texas Attorney General, Paxton stated, "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."

Paxton's contention centers on the City of Austin's dealings with WEX Bank, a firm that manages fleet cards and has purportedly discriminated against the firearms industry. Specifically, WEX Bank was involved in "debanking" Defense Solutions Group, a purveyor of high-grade weaponry to military and law enforcement, back in 2021. While Texas law strictly forbids such contracts, Austin has continued its multimillion-dollar agreements with WEX Bank, drawing Paxton's ire and the threat of legal ramifications if compliance is not swiftly met, as reported by the Texas Attorney General.

The Attorney General's office issued a letter to the City of Austin outlining the law and the apparent violations, which was reported by the Texas Attorney General's newsroom. In his letter, Paxton elucidates on the broader implications of debanking practices, particularly under the Biden administration. "Banks and the regulatory regime took action during the Biden administration to cut off everyday Americans and their businesses from critical financial services because of their views," Paxton noted. "The concept of debanking is anti-American and stands in stark opposition to our rights to freedom of speech guaranteed by the Constitution."