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20-state coalition fights Treasury claim that certain banking policies are security threat | National

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www.thecentersquare.com – By Bethany Blankley | The Center Square contributor – 2024-08-07 07:18:00

(The Center Square) – Florida Attorney General Ashley Moody is leading a 20-state coalition opposing a Treasury Department claim that state laws preventing de-banking policies are a “national security threat.” The latest action is only an “attempt to stoke confusion about state laws to advance extreme activist agendas,” Moody said.

“The Biden-Harris administration has pushed a radical agenda since its first day in office,” Moody said. “From open borders, to attacking gas stoves and washing machines, they now are attempting to use the power of the Treasury Department to accuse states, that seek to protect their citizens from unjustified radical de-banking, of being a national security threat. This is nothing more than another attempt to leverage the power of the federal government to achieve this administration’s destabilizing, activist agenda.”

In a letter to Yellen, the coalition expressed their “serious objections to your department’s recent letter characterizing state laws attempting to protect individuals from de-banking as harmful to national security.”

At issue is a request from U.S. Rep. Josh Gottheimer, D-NJ, who argues state laws are “fracturing the national banking system” and “may conflict with federal laws intended to combat money laundering and terrorist financing.” His letter doesn’t mention ESG policies but questions “when states enact laws that subject banks to processes and disclosure requirements that are at cross-purposes with federal law, SAR confidentiality could be jeopardized,” referring to federal law requiring banks to file suspicious activity reports.

No state laws prohibit banks from filing SARs or from complying with the Bank Secrecy Act.

Last month, Gottheimer expressed concerns to Treasury Secretary Janet Yellen at a U.S. House Committee on Financial Services hearing about “recent state laws that require banks to provide an explanation with specific reasons for closing or denying an account including situations where the decision was related to financial crimes risk.” He was concerned they “may conflict with federal requirements, especially the obligations that banks have under the federal anti-money laundering laws, that prevent terrorists and illicit financing in the US financial systems.”

In response, Yellen said banks are required to file SARs and comply with federal law. Treasury Under Secretary for Terrorism and Financial Intelligence Brian Nelson then sent a letter to Gottheimer saying they shared his concerns.

“State laws interfering with financial institutions’ ability to comply with national security requirements heighten the risk that international drug traffickers, transnational organized criminals, terrorists, and corrupt foreign officials will use the U.S. financial system to launder money, evade sanctions, and threaten our national security,” Nelson wrote, referring to a newly enacted Florida law, HB 989.

Nelson claims HB 989 “defines as an ‘unsafe and unsound practice’ a financial institution’s reliance on any factor that is ‘not a quantitative … standard’ to determine which customers to serve or services to offer” and “prohibits consideration of a person’s ‘affiliations’ or ‘business sector’ to make these decisions.”

An AP “Climate Desk” initiative claims the Florida law bans Environmental, Social, Governance policies. According to the bill language, it was filed to prohibit financial institutions from discriminating against customers based on their religious and political views and from creating a social credit score system to restrict or penalize their purchases or access to credit because of them.

The law protects “consumers from discrimination and entities like religious organizations, gun manufacturers, and those engaged in fossil fuel exploration from improper political pressure for their lawful and often constitutionally protected activities,” Moody said. “No consumer or business should be denied services based on political beliefs or religious views or because of some arbitrary social credit score derived from ideological agendas.”

Nelson’s letter “deliberately misleads financial institutions,” Moody argues, “by falsely suggesting” that HB 989 prohibits them from considering whether a consumer is associated with designated terrorist groups. It was passed to ensure “that financial institutions focus on true risk-based factors and stay out of the business of forcing radical social policies,” she said. Claiming “that prohibiting discrimination will harm national security” is “outlandish.”

Florida already prohibits state pension money from being invested in funds that advance ESG policies. Gov. Ron DeSantis has taken executive action on the issue for several years. Last year, he led a coalition of 18 governors to fight the Biden-Harris ESG agenda; 25 state attorneys general also sued to block a federal ESG plan they argue could jeopardize the retirement savings of two-thirds of the U.S. population.

The Treasury “has once again forsaken its statutory role and instead chosen to intervene on behalf of activists seeking to hijack the financial system for their political ends,” the coalition argues. “It is even more disappointing that the Treasury Department would use ‘national security’ as cover for large banks’ abuse of power to achieve those ends.”

Joining Moody are attorneys general from Alabama, Alaska, Arkansas, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, South Carolina, Texas, Utah, West Virginia and Wyoming.

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News from the South - Florida News Feed

Report: Big deficit ahead for state employee health insurance trust fund | Florida

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www.thecentersquare.com – By Steve Wilson | The Center Square – 2025-01-23 08:24:00

SUMMARY: The Florida State Employees’ Health Insurance Trust Fund may face significant financial challenges despite a current balance of $652.7 million for fiscal 2024-25. A report from Florida Taxwatch warns of a potential $1.5 billion deficit by fiscal 2028-29 if no actions, like increasing premiums, are taken. The program’s costs have escalated while employee contributions have stagnated, shifting more financial responsibility to taxpayers. As a result, taxpayer contributions for coverage have risen from 87.4% to 94.4% for single plans. Recommendations include adopting a fixed state contribution to relieve future budget pressures and ensure fund solvency.

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Trump deploys 1,500 troops to southwest border, removals underway | National

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www.thecentersquare.com – By Bethany Blankley | The Center Square contributor – 2025-01-23 08:00:00

SUMMARY: President Trump ordered the deployment of 1,500 active-duty service members to the U.S. southwest border to enhance federal deportation efforts in San Diego and El Paso. Acting Secretary of Defense Robert Salesses announced this move following Trump declaring a national emergency at the border. The military’s role includes securing against unlawful migration and transnational crimes. This deployment adds to the existing 2,500 active-duty personnel, increasing their presence by 60%. Troops will assist with physical barriers, real-time surveillance, and deportation operations in coordination with the Department of Homeland Security. The Pentagon is also providing logistical and intelligence support.

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Quick review of temporary protection status sought by state prosecutors | Ohio

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www.thecentersquare.com – By J.D. Davidson | The Center Square – 2025-01-23 07:13:00

SUMMARY: Republican attorneys general, led by Ohio’s Dave Yost, are urging Homeland Security Secretary nominee Kristi Noem to reevaluate temporary protection status (TPS) for Haitian immigrants, which they claim has been extended beyond its intended duration. Currently, 17 countries, including Haiti, have TPS, with some dating back to the 1990s. Yost argues that the program allows noncitizens to remain indefinitely, contrary to its temporary intent. This has placed significant strains on local infrastructure in Springfield, Ohio. The attorneys general want Noem to expedite a review of the TPS system, which they say frustrates congressional goals and adds financial burdens on states.

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