The ongoing debate over Oklahoma’s enforcement of a bill passed in 2022 to stop some financial firms from discriminating against the oil and gas industry is far from over.
The Energy Discrimination Elimination Act and the feud between Treasurer Todd Russ and Attorney General Gentner Drummond prompted an opinion piece from John Wittman, executive director of Americans for Free Markets, a coalition of groups in support of free markets and economic growth.
Oklahoma Lawmakers Get It Right On Protecting Free Markets
By John Wittman
Keeping our free markets thriving is integral to the success of our nation and to Oklahoma. It’s the foundation of our past and future successes, which is why I’m glad that Oklahoma legislators took steps to safeguard free markets this session.
Lawmakers halted “debanking” legislation that would have only added further restrictions to Oklahoma’s financial services market and contributed to a patchwork of state legislation on the issue that harms consumers and the interstate commerce crucial to the state’s economy. Recognizing President Trump’s commitment to address this at the federal level—and the congressional legislation in motion to rein in regulatory overreach and ensure fair access to financial services—was a win for free markets and Oklahomans.
Further, lawmakers avoided disastrous interchange fee legislation that would have made it more difficult for small businesses to accept credit cards and for consumers to use them. While similar proposals are being considered in Democratic-led states such as Illinois, New York and Massachusetts, it is crucial that we continue to prioritize the well-being of consumers and small businesses in the Sooner State.
In another encouraging move, lawmakers are also exploring ways to revise a misguided policy from a previous session: the Energy Discrimination Elimination Act (EDEA), passed in 2022. While framed as a way to restrict state business with firms that were accused of boycotting certain industries, namely in the energy sector, it has instead created financial uncertainty, increased borrowing costs and limited investment opportunities—hurting taxpayers, businesses and public servants alike.
Notably, a recent analysis by the Rainforest Action Network found that the very banks targeted by these restrictions are actually among the largest funders of fossil fuels in the world. This contradiction paints the picture of how misguided the EDEA is, penalizing financial institutions under a false premise while ultimately increasing costs for Oklahoma taxpayers.
Additionally, a 2024 study by Oklahoma Rural Association (ORA) found that the EDEA has resulted in a 15.7 percent increase in borrowing costs for Oklahoma municipalities compared to states without similar legislation. According to the ORA, the law has forced local governments to raise taxes, cut spending and delays or cancel critical infrastructure projects for the Sooner State. Fortunately, a majority of lawmakers recognized this poorly conceived legislation for what it was and are working to fix the local government piece articulated above.
Such legal challenges to the EDEA are not just warranted—they are necessary. The law’s vague language and broad enforcement powers all raise serious concerns. Courts have already flagged legal issues and lawmakers should recognize that this law was misguided from the start. A patchwork of state laws won’t address the core problems and minor adjustments won’t undo the financial harm already done.
Beyond the policy itself and despite active litigation, oversight of the EDEA’s implementation remains a concern. While State Treasurer Todd Russ initially was given the authority over enforcement, that responsibility has since shifted. This underscores the need for clear checks and balances to prevent any single office from holding too much power when it comes to financial decisions that impact billions of taxpayer dollars. Oklahoma needs transparency, accountability and policies that serve the people—not political maneuvering that jeopardizes the state’s economic health.
State lawmakers made smart choices this session to protect free markets and support Oklahoma’s economy. Through continuing that approach and fixing flawed policies like the EDEA, they can keep advancing practical, pro-growth solutions that benefit taxpayers, businesses, and public servants alike.
John Wittman is the executive director of Americans for Free Markets, a coalition of groups in support of free markets and economic growth.