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Primary Sponsor

Last Action

Re-ref to the Com on Commerce and Economic Development, if favorable, Rules, Calendar, and Operations of the House2025-03-17

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill prohibits North Carolina banks, savings and loans, savings banks, and credit unions from denying, restricting, or canceling services to farmers based on their greenhouse gas emissions, use of fossil fuel fertilizers, or use of fossil fuel-powered machinery. If a financial institution has environmental, social, or political (ESG) commitments related to agriculture, the law presumes any denial of service to a farmer violates this rule unless the institution can prove the decision was based solely on financial reasons.

Arguments in Favor

• •Supporters argue this bill protects farmers from losing access to financing based on environmental or political agendas rather than sound financial judgment.
• •They contend that farmers should not be penalized for using conventional farming practices and that financial institutions should make lending decisions based on creditworthiness and risk, not on pushing particular environmental or social policies.
• •Farmers and agricultural advocates argue this ensures fair access to banking services essential for agricultural operations.

Arguments Against

• •Opponents contend this bill may restrict banks' ability to manage their own business practices and align their services with their stated values or risk assessments.
• •They argue that financial institutions may legitimately consider environmental factors as part of broader risk management strategies, and that the law's rebuttable presumption heavily burdens banks to prove their lending decisions were financial rather than values-based.
• •Critics also worry the law could expose banks to costly litigation and limit their operational flexibility.