Category: Public Banking News

CPBA State Bank 2025

New CPBA Brief! California Needs a State Public Bank

California is facing budget deficits, federal rollbacks, and deep cuts to housing, climate, CDFI funding, and small business programs. Just as our communities need support, the federal government is pulling back. Californians cannot depend on the Trump Administration to help solve these problems. We must assert our State’s authority to manage our substantial financial resources for addressing critical needs. For nearly 40 million Californians, the time to act is now.

The California Public Banking Alliance has released a new State Public Bank Brief to show a path forward. A State Public Bank would keep California’s money working for Californians by protecting public funds, expanding credit to our communities where it is needed and lowering borrowing costs.

View and download here: California Needs a State Public Bank

Local public banks are already moving forward across the state. City-and-regional-level public banks keep dollars circulating in neighborhoods, supporting small businesses, housing, and community projects. A State Public Bank creates an ecosystem of public financial infrastructure. It brings the strength of the world’s fourth-largest economy, pooling deposits, providing liquidity, and technical assistance to help local banks launch and grow. The state bank provides the scale, support, and reach to finance housing, climate resilience, and infrastructure on a statewide level.

This is how California can build lasting economic power and resilience in the face of a hostile federal administration!

Join the fight and be part of the team building the State Bank campaign. This is only the starting point. Legislation is still being developed, and core details on capitalization, governance, and oversight will be shaped with coalition leaders, stakeholders, and legislative champions. Our aim is simple and urgent: build a strong, lasting movement and a financial system that truly serves the people of California!

Volunteer with us! 

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Join Us for a Public Banking Webinar with Rep. Rashida Tlaib and CPBA’s Trinity Tran!

Public Banking: Financial Infrastructure for Guaranteed Income and a Just Economy
Tuesday, June 17 | 11:00 AM – 12:00 PM PT | Zoom

Register Online via Zoom

As federal support for climate and infrastructure shrinks, cities are turning to bold tools to build local economic power. Public banking is one of them.

Join us for a virtual roundtable, featuring our very own Trinity Tran, on how public banks can support guaranteed income programs and help build more inclusive, community-rooted economies. The event will spotlight new research from the Institute on Race, Power and Political Economy at The New School and feature leaders in public banking, economic justice, and guaranteed income.

Featuring
:

  • Representative Rashida Tlaib, U.S. Representative, 12th Congressional District of Michigan
  • Terri Friedline, Professor of Social Work, University of Michigan
  • Darrick Hamilton, University Professor and Founding Director, Institute on Race, Power and Political Economy, The New School
  • Amy Castro, Co-Founder and Faculty Director, Center for Guaranteed Income Research, and Associate Professor, University of Pennsylvania
  • Trinity Tran, Co-Founder and Lead Organizer, California Public Banking Alliance
  • Graham Steele, Academic Fellow, Rock Center for Corporate Governance, Stanford Law School/Stanford Graduate School of Business, and Fellow, Financial Regulation, Roosevelt Institute

Hosted by: The Institute on Race, Power and Political Economy, The New School.

Read and download two new reports on how public banking can support economic equity and strengthen financial infrastructure for guaranteed income programs.

Public Banking A Public Option to Build an Inclusive and Sustainable Economy includes a brief overview of Public Bank LA.

How Public Banking Could Support Guaranteed Income includes a mention of the California Public Banking Alliance and CalAccount.

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CPBA Featured in New Demos + NEP Report on Public Banks and Racial Equity

At a national convening in Washington, D.C., marking the launch of Demos and New Economy Project’s report, Public Banks for Racial Equity: Democratizing Finance to Build Community Wealth,CPBA’s Executive Director Trinity Tran and Legislative Director Sylvia Chi presented Dispatches From the Field: Wins, Lessons, What’s Next for California, a look at the statewide public banking movement’s milestones and future trajectory.

The report covers the California Public Banking Alliance’s leadership in passing the California Public Banking Act (AB 857), the first legislation in the nation to create a pathway for municipal public banks. CPBA’s work is cited as a model for how public financial institutions can “move public dollars out of extractive banking institutions and into investments that benefit working-class communities of color.”

CPBA is proud to be featured alongside organizers and public banking advocates from across the country committed to reimagining finance for racial and economic justice. As Trinity Tran notes in the report, “A public bank must be rooted in public interest and accountability to the communities it serves. We’re building the financial architecture to fund affordable housing, small businesses, and green infrastructure in communities that Wall Street has long ignored.”

The report features insights from CPBA along with Public Bank LA’s Legislative Director David Jette, showing how California is laying the groundwork for a network of socially and environmentally responsible public banks, designed to build economic power in low-income communities of color.

Read the full report: Public Banks for Racial Equity.

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San Diego County Supervisor Terra Lawson-Remer Calls for a Public Bank to Finance Affordable Housing

San Diego County Board of Supervisors acting Chair Terra Lawson-Remer called for bold local action in Wednesday evening’s State of the County Address, including the creation of a public bank to finance affordable housing. She stated the need for the County to step up when the federal government falls short in serving residents: “We can wait, or we can lead.”

Read the article in Patch: “County Leader Calls For Establishing Public Bank To Pay For Housing.” 

Additional press in CBS! San Diego County Board of Supervisors acting Chair Terra Lawson-Remer called on it to take a stronger role in providing for residents, including possibly establishing a public bank to pay for affordable housing, in Wednesday evening’s State of the County Address.

CBS: “State of the County addresses San Diego Supervisor’s plan to tackle national governance crisis.”

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Congresswoman Rashida Tlaib Leads on Public Banking

Congresswoman Rashida Tlaib Leads on Public Banking

At the February 5, 2025, House Financial Services Committee hearing, Rep. Rashida Tlaib discussed how the Bank of North Dakota (BND) partners with local lenders to keep credit flowing where it’s needed most. Over half of its $5 billion loan portfolio supports small businesses, farmers, and homeowners—proving that public banking strengthens communities, not big bank profits.

Watch Congresswoman’s Tlaib at the “Make Community Banking Great Again” hearing.

Progressive cities are pushing for public banks, yet the model has already thrived for over a century in a red state. The BND has invested $1 billion in schools, water infrastructure, and healthcare while returning another $1 billion to North Dakota’s general fund.

And when crises hit, the results speak for themselves:

  • 2008 Financial Crisis – No North Dakota bank failed during the Great Recession. No foreclosures and no credit defaults. No other state can say the same!

  • Pandemic Relief – Faster, more effective small business support than Wall Street banks. Without the Wall Street middleman, BND distributed funds directly to impacted small businesses, helping them stay afloat.

  • Natural Disasters – Quick, local emergency response. Within two weeks of the 1997 floods in Grand Forks, ND, the Bank of North Dakota launched a disaster relief fund, allocated $5M for flood victims, and secured $70M in credit lines to local agencies and communities.

This is profit for the people, not Wall Street. The Bank of North Dakota proves public banking works—now it’s time for cities across California and the nation to take action. Let’s build it!

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A Technical Guide by the CA Public Banking Alliance

Welcome to the June edition of the CA Public Banking Alliance (CPBA) Newsletter! We’re excited to share insights into the transformative power of public banking in California and beyond. Explore our technical brief, learn about our initiatives to ensure financial inclusion through CalAccount, and find out how you can support the ongoing banking revolution. Plus, we celebrate a historic milestone in Public Bank East Bay’s public banking progress!


CA Public Banking Alliance Technical Brief: Exploring the Mechanics and Benefits of Public Banks

Discover the transformative potential of public banking with the CA Public Banking Alliance Technical Brief. Our newly designed comprehensive guide covers essential topics, including:

  • Mechanics of a Public Bank: Understand how public banks operate and their fundamental principles.
  • Start-Up Capital and Lending Funds: Learn about various methods to acquire the necessary capital and funds for lending.
  • Sustainability: Explore strategies to ensure the long-term viability of a public bank.
  • Advantages of Public Banks: Discover the numerous benefits, from fostering local economic growth to supporting community projects.
  • Examples of Public Banks: Examine successful public banks in the US, and around the world, and their impact.
  • Financial Components: Gain insights into the financial structures that underpin public banking.
  • Risk Management: Identify the risks involved for both the public and the sponsoring entity and learn effective risk mitigation strategies.
  • Rate of Return: Get projections on the expected return on initial capital investments.
  • Municipal Finance Corporations: Learn about these entities and their role in public banking.
  • Green Banks: Understand the concept of green banks and their importance in driving sustainable projects.

For a deeper dive into these topics and more, read our updated technical brief.


Historic Resolution for East Bay Public Bank Charter Passed

On May 29, 2024, Richmond, CA’s City Council unanimously passed a resolution authorizing East Bay Public Bank organizers to apply to state and federal regulators for a bank charter. This is the first such government resolution in the U.S. in 100 years! Congratulations, Richmond!


Save the Date! CalAccount Town Halls in Los Angeles and Sacramento on July 18th!

Earlier this year, we held a series of statewide town halls attended by hundreds of people in coordination with the State Treasurer’s Office to uplift the voices of those affected by Wall Street’s harmful and unfair banking practices.

On July 18, 2024, in preparation for the release of the final CalAccount market analysis report, we’ll be convening our second town hall in Los Angeles and Sacramento. Your voice matters in bringing free banking to California. Stay tuned for details!

CalAccount was featured in La OpiniÃģn, the US’s largest Spanish-language paper. Read the coverage: RevoluciÃģn bancaria en favor de los mÃĄs vulnerables (Banking revolution for the most vulnerable; see English translation). 


Endorse CalAccount: Empower Californians with Free Financial Services

Join over 250 organizations in supporting CalAccount, a groundbreaking initiative to provide free financial services for all Californians. Over 30 percent of Black and Latina/Latino households are unbanked or underbanked. By endorsing CalAccount, your organization will help support financial inclusion, reduce the unbanked population, and ensure that all residents have access to essential banking services without the excessive fees, fines, penalties, and barriers posed by Wall Street banks and commercial financial institutions.

Endorse CalAccount today by signing our organizational support letter. If you have already endorsed, please reaffirm your commitment by signing our 2024 endorsers letter.

Join the movement and stand with our growing list of supporters by viewing the links below.

Sign On to Endorse CalAccount and our 2024 Endorsers Letter

View the Endorsers List


Support the Banking Revolution: Donate Today!

In 2019, the California Public Banking Alliance (CPBA) achieved a historic milestone with the passage of the California Public Banking Act (AB 857). Building on this success, our all-volunteer team and dedicated allies championed the California Public Banking Option Act (AB 1177) in 2021, which will make universal free banking services a reality.

Now, we’re focused on turning these groundbreaking legislations into tangible change. Our team is working tirelessly to establish local public banks across California and guide the CalAccount program to fruition.

Every dollar you donate is tax-deductible and directly supports our mission to open public bank doors and provide free banking services to all Californians. Your generosity will make a real difference in the lives of California communities.

Thank you for your support.

Donate Now

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A Banker’s Case for Public Banking

NONPROFIT QUARTERLY – Today, more public banks are being launched and planned. For example, Public Bank Los Angeles (PBLA) was established as a socially and environmentally responsible municipal bank for the City of Los Angeles. PBLA also helped pass AB 1177, the California Public Banking Option Act, known as CalAccount, under which free and penalty-free debit cards will be offered to all Californians, providing basic financial services such as check cashing, deposits, and bill paying.

PBLA states that its goal is “to provide affordable financial services and promote economic growth in California by providing greater access to financial services for Californians, particularly unbanked and underbanked populations.” In addition, PBLA and the California Public Banking Alliance (CPBA) advised Representatives Rashida Tlaib (D-MI) and Alexandria Ocasio-Cortez (D-NY) on the 2023 reintroduction of the Public Banking Act, a federal bill that aims to facilitate the establishment of public banks by states and local governments.

A Banker’s Case for Public Banking

For over 20 years, I have explored how to change financial systems in the United States to promote greater equity and inclusion. This has led me to the conclusion that if we want to close the racial wealth gap, we need to get serious about public banking.

Public banks, owned by state and local governments, are driven by a community-serving mission, Currently, financial systems favor White-owned firms and disfavor firms that are owned by people of color, limiting the wealth-building opportunities available to them. Public banking could help change these dynamics.

Why a Banker Became a Public Banking Advocate

How did I come to adopt this position? If you had asked me 20 years ago about public finance, I doubt I could have told you what a public bank was. My journey began far from the financial world. Eventually, I moved from the nonprofit sector to corporate America, working with business leaders who wanted to be more inclusive, and started a business accelerator helping over 30 Black entrepreneurs start businesses, many of which are still thriving over a decade later.

Working with private business, I decided to follow the power and money, and started a consultancy working with financial institutions to change systems within banking. After working with many banks over the years, Berkshire Bank brought me into the bank as a C-suite executive and regional president. This experience helped shape how I understand our economy and why it’s so important for the mainstream banking industry to flow more responsible capital to people of color.

How Finance Currently Reproduces the Racial Wealth Gap

The racial wealth gap is as entrenched as ever—a chasm of earnings power, savings, and investment that threatens to leave behind another generation of Black and Latinx households. According to an analysis by the Federal Reserve’s Board of Governors staff, the average household of color earns about half as much as the average White household and holds only about 15 to 20 percent as much net wealth. An index known as the Gini coefficient—ranging from 0 (representing perfect equality) to 1 (total inequality)—shows a stark contrast.

Continue reading on NonProfit Quarterly.

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How advocates are building support for a public bank in Washington State

From Washington State to California, public banking is full steam ahead in 2024! “In 2023, more than three-quarters of U.S. states have a group focused on public banking or a candidate with public banking as part of their platform…The Los Angeles City Council last year voted to fund a study on the feasibility of a public bank, and city supervisors in San Francisco approved a plan to start the process of establishing a municipal bank. This year, Philadelphia’s new mayor is expected to choose board members for the country’s first municipal public bank, which the city council voted to establish in 2022.”

Read the article in American Banker.

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Tlaib, Ocasio-Cortez Introduce Public Banking Act

Thanks to Congresswoman Rashida Tlaib and Alexandria Ocasio-Cortez all our coalition partners across the country that helped craft this transformative bill! For too long, Wall Street has failed to meet the moment, pursuing profits over people’s needs. This allows us to finally build a sustainable alternative.

In California, we passed the CA Public Banking Act, AB 857, which established a regulatory structure to legalize and guide the efforts of municipalities and regions throughout the state. The federal Public Banking Act will build on and expand that framework nationally to aid efforts across the nation.

WASHINGTON D.C. â€” Today, Congresswoman Rashida Tlaib (MI-12) and Alexandria Ocasio-Cortez (NY-14) introduced the Public Banking Act of 2023, which facilitates the creation of state and local public banks. The bill establishes a robust federal regulatory framework, grant programs, and financial infrastructure to promote public banks and ensure their success. The bill also mandates minimum standards for public banks relating to environmental justice, tenant protections, labor standards, democratic governance, and consumer data privacy.

“Wall Street-run banks are failing to serve many of my residents who are struggling to make ends meet,” said Congresswoman Tlaib. “It’s long past time to open doors for people who have been systematically shut out. We must provide a better option for those grappling with the costs of simply trying to participate in an economy that has been rigged against them with discriminatory and predatory practices. We need a financial system that is democratically accountable and puts the livelihoods of our residents ahead of private profits.”

“The Public Banking Act provides much needed federal recognition and guidance for public banks,” said Trinity Tran, Lead Organizer for the California Public Banking Alliance. “Public banking is key to unlocking economic transformation for communities often overlooked or exploited by our current financial system, charting a path for cities and states to build a sustainable future that prioritizes environmental justice, tenant protections, democratic governance, and strong labor and workers’ rights.”

Read the press release: https://tlaib.house.gov/posts/tlaib-ocasio-cortez-introduce-public-banking-act.

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San Francisco Green-Lights Nation’s First Public Bank

KQED – “Interest in a statewide public banking option is also bubbling. In 2021, Gov. Gavin Newsom signed Assembly Bill 1177 into law, which called on the state to analyze what a statewide public option for personal financial services could entail. That analysis is due by July 1, 2024.”

Read: San Francisco Green-Lights Nation’s First Public Bank

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