Citi’s latest political foray: Abortion-related travel expenses

Citigroup is again taking a stand on a hot-button political issue, this time by offering to reimburse travel costs for employees who leave their home state to get an abortion.

Citi is offering “travel benefits to facilitate access to adequate resources” as a result of “changes in reproductive healthcare laws in certain states,” the megabank disclosed in its latest proxy statement to shareholders.

In September, Texas enacted a controversial law that bans abortions after six weeks of pregnancy. The law allows virtually anyone to sue doctors, clinic workers and other individuals who assist a woman seeking an abortion after the six-week cutoff.

Bloomberg

Other states are following suit. This week, the Idaho legislature approved a bill that resembles the Texas statute, though it would allow only family members of a “preborn child” to sue abortion providers. The bill has been sent to the desk of Republican Gov. Brad Little.

A Citi spokesperson did not elaborate on the specific benefits available to employees who seek out-of-state abortions, but did confirm earlier reporting by Bloomberg, which said that the list of covered expenses include airfare and lodging that may be incurred by those who can’t receive abortions in their home states and choose to travel out of state.

The new benefits took effect on Jan. 1, the Citi spokesperson said. They apply to employees enrolled in the company’s U.S. medical benefits plan, as well as any family members covered under the plan, according to the spokesperson.

Citi’s plan to offer abortion-related travel benefits drew immediate fire from Republican officials in Texas.

“The ‘travel benefits’ offered by Citigroup is nothing more than a PR stunt by a ‘woke’ company to support a culture of death,” Texas Land Commissioner George P. Bush, who is running for the GOP nomination for state attorney general, told Bloomberg News in an email Wednesday.

Matt Rinaldi, chairman of the Republican Party of Texas, told Bloomberg News: “Citigroup’s decision to finance the murder of unborn children with a heartbeat is appalling, but not surprising, considering its past adoption of far-left causes.”

It is unclear whether any of Citi’s big-bank peers will offer similar benefits. On Wednesday, JPMorgan Chase declined to comment on the matter, and Bank of America did not immediately respond to an inquiry. A Wells Fargo spokesperson said the company is not offering anything similar and there are no known plans to do so in the future.

Outside of the banking sector, some companies have taken steps to provide support to people seeking to end unwanted pregnancies in states where new restrictions are taking effect.

On Sept. 1, 2021, the same day that the Texas law took effect, the Austin-based dating app company Bumble announced that it had “created a relief fund supporting the reproductive rights of women and people across the gender spectrum who seek abortions in Texas.”

The next day, the CEO of Dallas-based Match Group, Shar Dubey, said that she would personally create a fund to support Match employees and dependents who will be affected by the new Texas law. Match Group runs online dating sites including Match.com, OKCupid and Tinder.

Ride-sharing companies Lyft and Uber have both said they will cover legal fees for drivers who get sued under the Texas statute. Lyft also donated $1 million to Planned Parenthood.

Citi’s decision to weigh into the abortion debate follows an earlier controversy in Texas over the company’s gun policies.

After the 2018 mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida, Citi announced new restrictions on financing for gun companies. Then in 2021, Texas passed a new law that aimed to punish banks for not doing business with firearm manufacturers.

Citi initially lost a hefty portion of its municipal bond issuance business in the Lone Star State, but the company has since said that it is in compliance with the Texas law.