[1/2] Attorney General of Texas Ken Paxton speaks during former U.S. President Donald Trump's rally, in Conroe, Texas, U.S., January 29, 2022.
Texas enacted a law in 2021 that prohibited government contracts with entities that discriminated against the firearms industry.
"Citi's designation as an SB-19 discriminator has the effect of halting its ability to underwrite most municipal bond offerings in Texas," Paxton's office told Reuters, referring to the law.
Bloomberg News first reported the news, citing a letter that Leslie Brock, assistant attorney general chief of the public finance division, distributed to lawyers on Wednesday.
"Therefore, until further notice, we will not approve any public security issued on or after today's date in which Citigroup purchases or underwrites the public security, or in which Citigroup is otherwise a party to a covered contract relating to the public security," according to the letter.