We’re excited to share that CalAccount is moving forward this year through the state budget process, and was included in the budget deal agreed to by the Governor, Senate, and Assembly, a strategic path forward made possible by the leadership of Assemblymember Avelino Valencia (D-Anaheim), Governor Newsom and his legislative staff, the Chiefs of Staff for Senate President pro Tempore McGuire and Budget Chair Wiener, Speaker Rivas, Assembly Budget Chair Gabriel, and State Treasurer Ma, along with her Chief Deputy Treasurer.

This year’s state budget provides $1 million toward implementation in the CalAccount Commission process. Once approved, CalAccount will become the nation’s first state-administered, fee-free public banking option. It builds on the groundwork laid by the California Public Banking Option Act (AB 1177), passed in 2021, and the CalAccount Blue Ribbon Commission, chaired by State Treasurer Fiona Ma, which produced the market analysis in 2024. This is another major step toward ending financial exclusion and reducing economic inequality across the state.

CalAccount will provide a safe and free public banking alternative for over 7 million unbanked and underbanked Californians, including 2.5 million households. Each year, California families lose $4.5 billion to financial fees. That’s money that should go toward rent, groceries, and bills, not bank profits. As costs rise, CalAccount provides real relief for low-wage workers and vulnerable communities, providing a practical alternative to the predatory fees and penalties of big banks.

Thank you to everyone who sent emails and letters to the Governor and budget leaders. Your support helped make this happen!

Why it matters:

• CalAccount could save underbanked households upwards of $1,000 per year.
• It’s projected to deliver over $45 million in economic stimulus in its first year alone.
• The program is designed to be cost-neutral over time, funded by user swipe fees, not taxpayer dollars.

CalAccount is an urgently needed path forward to keep more money in people’s pockets and ensure every Californian has access to basic financial services, especially as consumer financial protections are being dismantled at the federal level.

We’re proud to help lead this effort with SEIU California and the CalAccount Community Coalition, and to see California once again set the national standard for economic justice.

Read our press release here.

CalAccount Community Coalition in Sacramento!

Photos from our CalAccount Advocacy Day and training session with the CalAccount Community Coalition and California Fast Food Workers at the State Capitol and SEIU State Council in Sacramento.

CalAccount Community Coalition gathers at the Capitol Rotunda.

CalAccount Community Coalition and California Fast Food Workers Union with Assemblymember Avelino Valencia.

Sylvia Chi – California Public Banking Alliance (CPBA), Cynthia Amezcua – FreeFrom, Trinity Tran – CPBA, Rick Girling – CPBA, Anneisha Williams – California Fast Food Workers Union (CFWU), Erika Connor – CFWU at the Capitol.

heila Ainsworth with California Fast Food Workers Union – CFWU, Michael Jones – CFWU, Trinity Tran – California Public Banking Alliance, Lilian Hernandez – CFWU, Pedro Loera – CFWU, Erika Conner – CFWU, Lio Sanchez – CFWU meeting with State Legislators.

Sylvia Chi – CPBA, Michael Jones – CFWU, Erika Conner – CFWU, Sheila Ainsworth – CFWU, Pedro Loera – CFWU heading to legislative meetings.

CalAccount Advocacy Training Session with California Fast Food Workers Union at SEIU State Council.

Sarah Zimmerman, Cecille Isidro – SEIU at the CalAccount Advocacy Training.

SEIU California 
FOR IMMEDIATE RELEASE
April 23, 2025

Contact: 
Maya Polon, maya@paschalroth.com
Maria Elena Jauregui, 818.355.5291, Spanish-language

As Trump Administration Rolls Back Consumer Protections, California Finding New Ways to Save Consumers Millions in Unaffordable Predatory Financial Services Fees

AB 1365 by Assemblymember Garcia soared through two Assembly Committees this week; the bill moves CA forward on CalAccount – a voluntary, no-fee, no-penalty banking option for Californians

Sacramento, CA – This week, the California State Assembly Committees on Banking and Labor voted overwhelmingly to pass AB 1365 (Garcia), a bill to eliminate barriers to banking for California residents through a retail banking option that is fee and penalty free. 

“Living paycheck to paycheck means choosing between handing over a huge chunk of your earnings to check-cashing shops or paying hundreds in bank penalties if your check doesn’t cover all your bills. Either way, corporations are pocketing the money I earn and that my grandkids are counting on to eat,” said Sandra Jauregui, a Jack in the Box worker from Sacramento. “I’m going to keep fighting for a fair paycheck, that puts me in a situation where these fees won’t be so harmful to me and my family, but until then and for everyone else going through what I’m going through now, the amount CalAccount would save my family will make a big difference.” 

“AB 1365 will create a first-in-the-nation banking option for Californians who have been forced out of the traditional banking system or that suffer the economic cost of paying high banking fees.” said Assemblymember Garcia, author of the bill, adding, “This retail banking option would give consumers access to a national network of ATMs as well as direct deposit and automatic bill payments.” 

“More than one in six California households either lack a bank account or depend on risky alternatives to traditional banks, like check cashers or non-FDIC-insured apps. Obscene fees are just one more way the system stacks the odds against working families. CalAccount puts money back where it belongs, in our communities, not in the hands of predatory companies,” said Trinity Tran, Executive Director of the California Public Banking Alliance.

A recent report from the Roosevelt Institute found that California has one of the highest concentrations of unbanked people in the US. The study highlighted some of the barriers that have led to these numbers including non-sufficient funds (NSF) and overdraft fees that affect customers with the lowest balances.

“California’s unbanked and underbanked households are predominantly headed by low-income Black and Brown people and single mothers who pay more for financial services while missing out on opportunities to build credit and savings. CalAccount flips the system from penalizing those who can’t afford basic banking to lifting up these low-income Californians,” said Paulina Gonzalez-Brito, CEO of RISE Economy.

“56.9% of surveyed survivors of gender-based violence (GBV) in California report having a harm-doer control their bank account. GBV is financially devastating, and financial institutions have a duty to support survivors subjected to economic abuse. Given that survivors need every dollar they earn to build their safety and economic freedom, CalAccount will create a first-of-its-kind, survivor-supportive retail banking option that could mark a significant step toward economic justice,” said Cynthia Amezcua Zamudio, State Policy and Advocacy Manager with FreeFrom.

AB 1365 puts California in a leadership position on protecting consumers from excessive fees to access their own earnings, just as Trump is dismantling the Consumer Financial Protection Bureau (CFPB), a critical consumer protection agency.  Already, a CFPB rule capping overdraft fees at just $5 is on the chopping block, putting an estimated $5 billion in consumer dollars in banks, not communities. The tear-down of the CFPB also means existing prohibitions against predatory banking are unlikely to be enforced.  

“Congress just overturned a CFPB rule that would have returned more than $5 billion in big bank overdraft fees to working people, so now it is more important than ever for California to lead on protecting consumers’ paychecks. It’s time that ALL Californians have access to basic banking services that don’t have junk fees taking a bite out of their wallets,” said Carla Sanchez-Adams, Senior Attorney, National Consumer Law Center.

“As Trump-imposed tariffs hike the costs of basic goods, resulting in employers laying workers off and wages remaining stagnant, access to fee and penalty free banking is more needed than ever. California has the ability to lift up all workers through a public banking system and lead the nation on banking affordability; we cannot miss this opportunity,” said David Huerta, President of SEIU California and SEIU United Service Workers West.

AB 1365 will now head to the Assembly Appropriations Committee. 

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Back in 2021, supporters from across the state helped pass the California Public Banking Option Act (AB 1177). Because of your support, the CalAccount Blue Ribbon Commission was created to explore how to bring no-fee, penalty-free banking to every Californian.

This past summer, the Commission released its report and the verdict was clear: CalAccount is not only feasible, it’s urgently needed. CalAccount is backed by CA State Treasurer Fiona Ma.

Now we’re entering the final phase. AB 1365 (Garcia), the bill to implement CalAccount, is moving forward in the State Legislature and will be heard in its first committee on April 21.

As part of the CalAccount Community Coalition, we invite you to join us on Wednesday, April 16 at 2pm for a quick campaign update and call to action.

You’ll hear from the CalAccount Program’s author Assemblymember Robert Garcia and AB 1365 co-sponsors California Public Banking Alliance,SEIU California, Rise Economy, FreeFrom, and the National Consumer Law Center about what’s next, how your organization can help move this forward, and how to be part of the historic campaign to create the nation’s first state-administered universal banking services program.

REGISTER HERE FOR THE APRIL 16TH CALL:
https://us06web.zoom.us/meeting/register/4mtbNvFgT8K5PhuN_0bsOA

Learn more:calaccount.com

Our volunteer team of advocates from across the state: Sacramento, San Francisco, East Bay, and Los Angeles met with legislators at the Capitol to discuss our progress with building a network of socially and environmentally responsible public banks, and we rallied for CalAccount.

It was a packed day of meetings, including productive discussions with Senator Monique Limon and Assemblymember Mark Gonzalez about our progress.

With municipalities grappling with budget deficits and federal threats to local resources, public banking creates a powerful tool to build local sustainability. By leveraging public funds, we can generate revenue and resources that directly benefit California communities. It’s time to mobilize public revenue to serve the public good!

And with nearly 8 million un/underbanked Californians and threats to consumer protections, we need the state to lead on CalAccount to ensure basic banking is a right accessible to all.

See our post on Instagram and follow us on Twitter, Facebook, and BlueSky.

State Treasurer Fiona Ma supports CalAccount, recognizing its feasibility and urgent need. CalAccount is essential to protect Californians from predatory financial practices, offering everyone a fair shot at building wealth and breaking the cycle of poverty. We look forward to working with the Legislature to make this program a reality.

“In summary, a CalAccount program is, indeed, feasible. We also received a massive outpouring of public support for implementing a CalAccount program, which mirror feedback collected from throughout the state during the last six months. 

… But hearing over-and-over again these real and raw, first-hand experiences make it clear as day that the time is now for a CalAccount program and that this simple program could make a lasting impact in helping Californians build wealth and end inter-generation poverty.” – California State Treasurer, Fiona Ma

Read the State Treasurer’s press release: https://www.treasurer.ca.gov/news/releases/2024/24.pdf.